News Release Details
Bio-fuel has great export scope: study
New Delhi 16-Aug-2007
If India can produce sufficient bio-fuel, itcanavail the opportunity for exports to the European markets at a premium price said a study conducted by a multinational consultancy and market research firm, Frost & Sullivan India Ltd. The study said the EU directive for 5.75% mandatory blending of auto-fuel would create a demand for about 12-million tone bio-diesel in 2010. This demand may not be met as there would be a shortage of about 5.35 million tone of raw material for production of bio-diesel and hence there may be an opportunity for export of bio-diesel to Europe. Pointing to the growing consumption and possible shortage of bio-diesel in US, the study said exports to that country might not be possible in view of the likely protectionist measures. The American Soybean Association has called for imported bio-diesel to be exempted from federal tax benefits, it said. "Though India bio-diesel market is still at a nascent stage, not only typical agribusiness companies but a number of new players including energy companies, fuel and energy traders, private equity investors, automotive companies and financial investors are taking equity, shares in various bio-fuels ventures across the world in order to tap the rapidly growing bio-fuel market, "the study said. The Frost & Sullivan study advocates raising bio-fuel production, particularly from cost-effective jatropha plantation in. marginal and wastelands. India has the potential to produce enough bio-fuels not only for meeting its domestic auto-fuel blending programme, but also for exports, it said.
New Delhi 16-Aug-2007
If India can produce sufficient bio-fuel, itcanavail the opportunity for exports to the European markets at a premium price said a study conducted by a multinational consultancy and market research firm, Frost & Sullivan India Ltd. The study said the EU directive for 5.75% mandatory blending of auto-fuel would create a demand for about 12-million tone bio-diesel in 2010. This demand may not be met as there would be a shortage of about 5.35 million tone of raw material for production of bio-diesel and hence there may be an opportunity for export of bio-diesel to Europe. Pointing to the growing consumption and possible shortage of bio-diesel in US, the study said exports to that country might not be possible in view of the likely protectionist measures. The American Soybean Association has called for imported bio-diesel to be exempted from federal tax benefits, it said. "Though India bio-diesel market is still at a nascent stage, not only typical agribusiness companies but a number of new players including energy companies, fuel and energy traders, private equity investors, automotive companies and financial investors are taking equity, shares in various bio-fuels ventures across the world in order to tap the rapidly growing bio-fuel market, "the study said. The Frost & Sullivan study advocates raising bio-fuel production, particularly from cost-effective jatropha plantation in. marginal and wastelands. India has the potential to produce enough bio-fuels not only for meeting its domestic auto-fuel blending programme, but also for exports, it said.