paradigm shift towards climate change and sustainable development dr. jyoti parikh integrated...

Paradigm Shift Towards Climate Change and Sustainable

Development

Dr. Jyoti ParikhIntegrated Research and Action for Development,

New Delhi

Integrated Research and Action for Development

A ‘think tank’ that works with ‘action tanks’

Policy Advocacy and Dissemination Bio-Diesel Summit “A Discussion Forum for Bio-diesel

Stakeholders” Review paper on Bio-energy for Energy Assessment - TIFAC Research Analysis and Consultations Integrated Analysis of Diesel substitutes for Oil seeds in India-

PetroFed Action Projects with Community Participation Rural Micro enterprise Model for Bio-Fuel Extraction in India Village Energy Security Program in two hamlets of Gujarat Seminars/Training/Workshops IV International Training Program on “Role of Renewable energy in

Energy Planning and expanding Livelihoods Options”, New Delhi Training Program for the member of Bawal Bio-diesel Cooperative under

the project “Rural Micro enterprise Model for Bio-fuel extraction in India”

Biofuel for Sustainable Development

1. Biodiesel for National Fuel Needs

2. Biodiesel vs. Alcohol

3. Biodiesel for Transport and Rural Energy Security

4. Addressing Public Perceptions (Myths and Facts)

5. Biodiesel and Climate Change

1. Biodiesel for National Fuel Needs

- Provide local solutions for national security - Offer village level energy security- Short gestation periods and therefore cut down delays- Technology Components can be simplified - Provide employment opportunities for unskilled and semi- skilled - Lead to sustainable energy solutions - Environmentally friendly

Background

India spends $56 billion annually on oil & gas imports (Source: MoP&G, 2006-2007)

In 2006-2007, India consumed 146 million tons(MT) of crude oil and petroleum products-75% was imported

India has only 726 MT of economic reserves of crude oil left, whereas the demand exceeds 132MMT (2006-07)

HOW TO BRIDGE SUPPLY DEFICIT?

1. Biodiesel for National Fuel Needs (contd..)


2005-06 CAGR (%) 2000-01 to 2005-06

PoL Products 128.88 (MT) 4.68

Natural Gas 28.98 MT 1.78

Coal 407.28 (MT) 5.63

Lignite 30.06 (MT) 5.54

Hydel Electricity 8.59 MT 6.03

Thermal 43.516 MT 4.39

Nuclear Electricity

1.49 MT 0.545

Non-Utilities 6.37 MT 6.13

Total 655.166 5.16

India’s Energy Scenario: Commercial Energy Mix: 2000-2005

Oil Yielding Plants

Jatropha curcas or Ratanjot Pongamia pinnata or Karanj Calophyllum inophyllum or Nagchampa Hevea brasiliensis or Rubber seeds Calotropis gigantia or Ark Euphorbia tirucalli or Sher Boswellia ovalifololata

450 varieties identified in various parts of India


1 MMT of Jatropha oil needs Yields @1.5 kg/plant @2.0kg/ plant

Land (m.ha) 1.05 0.78

Labor-Plantation (m.person days)

335 250

Seed collection (m.person days)

21 16

Seeds (mmt) 3.28 3.28Processing Outputs

Clean Plant Oil (mm.T) 1.0

Cake* (mm.T) 1.9

Glycerol (mm T) 0.09516


Financial Analysis

Following assumptions are also made in financial computations:

Book rate of Depreciation is considered to be 8% Debt/ Equity ratio is assumed to be 1:1 Interest rate on loan is considered to be 6% on reducing

balance. It is assumed that repayment will be in 15 equal installments

It is assumed that the projects would enjoy tax Holiday for 15 years of operation

The Capacity of the plant is considered to be 10000 Metric Tonne per Annum for all cases.

Capacity utilization is assumed to be 70% in year1, 80% in year2 and 100% thereafter.


Assumptions

Assumptions Base case

Base case-A

Base case-A

Pessimistic Case

PessimisticCase A

Pessimistic case B

Capital Cost Rs./MTA Capacity

15000 15000 15000 20000 20000 20000

Seed Cost Rs./Kg.

4 5 6 4 5 6

Other Operating Costs Rs.

Lakhs/Yr. For 10000MTA plant

748

Byproduct Credits

Rs.Lakhs/Yr. @Rs.2/kg. of Oil Cake, Rs.60/Kg.

for Glycerol

1016

Sales Price Of Biodiesel Rs. 250/Litre


Price v/s IRR curve price vs IRR(with by product credit)

0%

20%

40%

60%

80%

100%

25 24 23 22 21 20 19 18 17 16 15 13 12.5

Price of biodiesel(Rs )

IRR

IRR Case 5 IRR Case 5A IRR Case 5B IRR Case 6IRR Case 6A IRR Case 6B

Case 5 : Base case

Case 6 : Pessimistic Case


Biodiesel - Systems Approach

Plantation of Oil bearing trees

Separation of seed, kernels, Procurement of seeds plantation of Oil bearing trees

Oil extraction, blending and processing

Modification needed to use in Transport vehicles, stationary equipment, and oil cakes

Energy Policy


BiodieselBiodiesel

Alcohol Biodiesel Fuel Stock Sugarcane Jatropha, Karanja

Familiarity Familiar crop with infrastructure yields, economics

Parameters yet unknown

Institutions Exist Yet to be created

Benefits Farmers (rich)Oil Industries

Small farmers

2. Biodiesel vs. Alcohol

Bio-dieselBio-diesel

Transportation Rural Energy Security

Scale ? Large Scale : 2 to 10 mt and more

Small & Medium: few tonnes per day

How ? Corporate Farming Community and Panchayat

3. Biodiesel for Transport and Rural Energy

ResourcesLarge investments & Land requirementsLarge wastelands

Small pockets of community land or hedges or wastelands

Who ? Oil Companies Co-operatives

When ?10 year horizonsSolutions to large energy problem

3 to 5 years, more immediateLarge no. of families but not large amount of energy

Bio-diesel Bio-diesel

Transportation Rural Energy Security

3. Biodiesel for Transport and Rural Energy (contd..)

4. Public Perceptions

Myth 1: Prices of Corn, Wheat & Cereals have gone up because of biofuels

Fact : This may apply to Alcohol only made from grains. Even-so,the acreage is not substantial enough to make such an impact.

.

Myth 2: Adverse impact on food security of poor and will worsen hunger

Fact : Hunger is observed even when there is no food shortage. Poor need income for which they can buy food. Biodiesel generates income from plantation, caring and finally using it for livelihood

4. Public Perceptions (contd..)

Myth 3: There is no land available for biodiesel.

Fact : Land is available in small amounts but with many Panchayat around the country. Additionally on the roadside plantations and hedges also possible.


Myth 4: Energy Balance (Uses more Energy than it gives)

Fact : Depends whether highly mechanised agriculture, irrigation and long distance transports involved.


Myth 5: Farmers are unwilling to grow non-edible oil seeds

Fact : Depends on the price they get and alternative incomes from land


To finance projects in developing countries to reduce GHG gases. To implement clean technology and sell the resulting carbon credits to country that can use it to meet GHG targets. To identify biofuel baseline and monitoring methodology. To strengthen the sustainable development goal of CDM, which is currently under achieved.

5. Biodiesel and Climate Change

CDM Opportunity and Biofuel

As of June 2006, no baseline methodologies for biofuel production and utilization have been approved by the CDM Executive Board. However, five methodologies have been submitted and are under review. Approval of one or more of these would improve chances for biofuel CDM projects significantly. - 30TDP biodiesel CDM projects in Andhra Pradesh, India - CDM project on biodiesel submitted by PCRA to MoEF

5. Biodiesel and Climate Change (contd..)

Current Status of Biofuel in CDM

Overview of Project


Some observations from the table in previous slide: • Most projects are in Thailand, and all of them in Asia.

• Most projects produce biodiesel, only one ethanol. • Biofuel sources differ much, including palm oil and different types of waste. • The project scale (in terms of CER generation) is comparable to most other CO2 projects, such as energy efficiency and many biomass projects, i.e. 50 – 200 ktCO2/yr. • CO2 reduction, as claimed on a life-cycle basis, is between 70- 97%; often agricultural, transportation, and biofuel production emissions are considered (the latter is renewable in several cases). • Four methodologies have received a ‘B’-comment from the CDM EB, implying that the methodology can be resubmitted subject to required changes.


Overview of Project (contd..)

INDIAN INITIATIVES

Indian Initiatives:Utilization

The Government of India has been assisting farmers in cultivating Jatropha Curcas

BIS has amended the specifications of diesel to permit the blending of Bio-diesel

Indian Oil Corporation (R&D) has set up a biodiesel production facility of 60 kg/day at Faridabad

PCRA has set up a Bio-Diesel Centre and submitted CDM project for bio-diesel activities

Contd…

Indian Initiatives:Utilization

HPCL has also set up an experimental project at Mumbai involving 25 BEST(public transport) buses using 5 per cent, 10 per cent and 20 per cent blends of bio diesel in diesel.

Mahindra & Mahindra Ltd. pilot plant utilizing Karanj for biodiesel has carried out successful trails on tractors in Mumbai

IOC- Indian Railways have conducted successful Shatabdi Train trial runs using Bio-diesel

Criteria for Land Availability

Department of Land Resources under Ministry of Rural Development, GOI has proposed the criteria for selection of lands for Jatropha plantation. These are:

Annual rainfall should exceed 600mm The pH of soil should be less than 9 (Wasteland category –

Alkaline/saline slight ) Temperature should not fall below 00 C. In the Himalayan

states in India there are places located above 1500 meters where temperature falls below 00 C. Hence the elevation of lands for plantation in the Himalayas should not exceed 1500meters

The slope of land should not exceed 300 The land should not be waterlogged (Wasteland Categories

6&7) The land should not be barren rocky/stony (Wasteland

Category 26)

Cost of cultivation of Jatropha

Year Expenditure

(Rs/ha)Income (Rs/ha)

Ist year 25445 02nd year 7373 6253rd year 4933 12504th year 5413 100005th year 6313 125006th year 7813 18750

Assumptions: Seed yield ( as in previous slide) & Seed Price: Rs 5/kg

Wasteland that can be considered for jatropha plantation

Shallow/Medium Ravinous 1.5 Mha

Land with scrub 15.1 Mha

Land without scrub 3.7 Mha

Saline/alkaline slight 0.4 Mha

Shifting cultivation 3.5 Mha

Degraded forest scrub 10.9 Mha

Total wasteland suitable for plantation

31.1 Mha

IRADe INITIATIVES

BIOFUEL EXTRACTION UNITBawal (Haryana)

Partners Involved Village Panchayats Bawal Biodiesel Cooperative (BBC) Regional Research Station of Chaudhary

Charan Singh Haryana Agriculture University, Bawal

Biofuel Extraction Unit, Bawal (Haryana)

Project Activities Completed Awareness Generation Formation of Bawal Bio-Diesel Cooperative

(BBC) Training Programmes Policy Support Field Implementation Building Construction and Commissioning of Oil

Extraction Unit Dissemination

Biofuel Extraction Unit, Bawal,Haryana (contd…)

Specific Objectives Formulate Micro enterprise Model for

biomass based energy system at village level

Provide easy access to alternative fuels in rural areas

Provide sustainable livelihood options for women at village level

Process locally available Jatropha and other oilseeds

Dedication Ceremony of Biofuel Extraction Unit in Haryana

Dedication Ceremony of Biofuel Extraction Unit in Haryana (contd…)

H.E. Dr. A.R. Kidwai, Governor of Haryana is dedicating Biofuel Extraction Unit to Villagers


Building of Biofuel Extraction Unit, Bhadoj, Bawal

Gram Panchayat Allawapur, Village- Bhadoj Welcomes


Dr. A. R. Kidwai, Governor of Haryana

Dr. Kirit Parikh, Member Planning Commission, GOI


Dr. Jyoti Parikh, Executive Director, IRADe

Capt. Ayay Singh, Revenue & Irrigation

Minister, Haryana State


View of large gathering – Approx.2000 rural people attended

Women from near by gram panchayat’s- Listening the

messages

Bio-Diesel Summit“A Discussion Forum For Biodiesel Stakeholders”

Specific Objective of Summit: Delivery of equitable and accessible bio-diesel

policy Providing technical know-how for commercial

cultivation of oilseeds crops and bio-diesel processing

Functioning as information hub Liaison and linkage among all stakeholders Energy Security and Climate change mitigation

Bio-Diesel Summit (contd..)Highlights

Key Issues (Socio-Economic, Financial and Environmental Issues) Addressed at the Summit

Overview of Indian Initiative Overview of methods/best

practices of Jatropha plantations and other oil-bearing trees

Analysis of existing oil extraction and processing techniques

Marketing and End Use Practices Government Policies on Bio-

Diesel Opportunities and Challenges in

Biodiesel Processing

Participants Public and Private Sector

Companies in business of cultivation, oil processing and suppliers

Ministries of Central and State government

International Funding agenicies

Bank and Financial Institutes

Experts and Academics

Bio-Diesel Summit (contd..) Highlights

Strategies Developed Cultivation of Oilseeds &

Land allocation Coordination with Local

Bodies for Nursery Raising Institutional Mechanism for

Raising Plantations Yield Data & Subsidies for

Plantation Authenticated Information on

Cost of Establishment High Initial Seed demand Minimum Support Price (MSP)

for oil seeder with Buy Back Guarantee Entrepreneurship Promotion

and Private Sector Participation

Management of Byproducts Tax & Promotional Policies Extraction and Trans-

esterification Developing Biorefinery

Concept Interministerial Cooperation Support for Research and

Development Biodiesel Production:

Corporate Social Responsibility

Oil Seed import Setting up of a National Bio-

fuel Development Board Gradual Subsidy Reduction

Issues to be Addressed

Research should be undertaken to improve the yields and value addition through alternative uses such as medicinal ingredients and biopesticides.

Studies should be done on post harvest handling methods.

A series of field demonstrations must be established using currently available information, to highlight the economic viability of cultivation of species such as Jatropha as alternative options on degraded lands and community wastelands.

It is necessary to establish clonal seed orchards and develop mass multiplication techniques to ensure easy supply of elite planting material to growers.

Contd…

Issues to be Addressed

Agronomic studies to standardise cultivation practices such as spacing, pruning, nutrition and production system must be carried out under different agro-ecological conditions

Realistic economics of production must be worked out for a range of soil, environment and management conditions.

Nodal agencies must be identified in different regions to procure superior quality seeds and plants and technical information.

Roadmap…. How to mobilize cultivation? What scale is possible? What policy framework (financial interventions,

mandate and standards) is needed? What coordination is needed with vehicle industries?

Cost sharing, modernization of equipment. Will they also need direct subsidy?

What institutional structure is suitable that permits flexibility and reduces constraints and barriers?

Can CDM help in generating the needed revenues? What policy should be avoided to ensure CDM benefits?

Publications

THANK YOU

Contact UsIntegrated Research and Action for Development (IRADe),

C-50, Chhota Singh BlockNew Delhi 110049

Tel: 91-11-26495522-23 / 55646622Fax: 91-11-26495522 - 23

Website: http://www.irade.org

paradigm shift towards climate change and sustainable development dr. jyoti parikh integrated...

Documents

energy planning

national fuel needs2

sustainable energy solutions

biofuel extraction

national security

rural energy security4

role of renewable energy

indias energy scenario