News Release Details
Many miles to go for bio-fuel
New Delhi 29-Aug-2007
The Stone Age did not pass because stones finished. It passed because man found more sophisticated methods of hunting. Similarly, the Oil Age would not pass because fossil fuel will finish, but because man would again find better ways to fuel his needs." Mukesh Ambani. If returns were better farmers would shift to bio-crops from cereals and grain, where returns are not as high. Bio-Fuel was first used in 1898 when Rudolph Diesel used peanut oil to demonstrate his compression engine at the World Exhibition in Paris. Then, Henry Ford designed his automobiles to use ethanol, beginning from the 1908 Model T. Since then, though, bio-fuel lost out to fossil fuel, which enjoyed a cost advantage offered by government subsidies. It was again in the 1970s that bio-fuel started attracting attention, but the reasons were more political than technological. In 1973, OPEC reduced supplies and increased crude prices. Oil independence has since then become the prime agenda of governments across the world. And in India, too, oil majors are waking up to the potential of bio-fuel. Bio-fuel can be broadly classified into ethanol and bio-diesel. Ethanol, derived from soya bean, COM or sugarcane, is less toxic and is always produced from renewable sources. While the blending of ethanol in petrol is well documented, it is bio-diesel that is now in focus. 'Bio-diesel is produced from transesterification of vegetable oils. Jatropha has now become synonymous with bio-diesel. A study by The Energy & Resources Institute (Ten) on wasteland identification defined the procedures for the identification of land within forest wastelands and others in consultation with states for jatropha plantation. Six out of nine categories of wastelands were identified as potential areas for Jatropha plantation. According to climatic conditions and potentiality for plantation, 26 states were selected. Some 40 million hectre for potential Jatropha plantation was identified. "Jatropha offers many advantages in planting. It can stand severe heat, can grow in very poor soils and in saline conditions, and can handle dryness very well," said PP Bhojvaid, dean, faculty of applied sciences, TEN. Oil PSUs Indian Oil Corporation (IOC), Bharat Petroleum (BP) and "Hindustan Petroleum (HP) has set up elaborate plans to venture into the bio-diesel segment. The three have held joint exploratory discussions with the state governments of Uttarakhand, Chhattisgarh, Gujarat, Madhya Pradesh, Uttar Pradesh, Andhra Pradesh, Orissa, and Tamil Nadu and Jharkhand for collaborative projects in the entire value chain of bio-diesel: plantation and transesterification to blending and marketing. IOC is in the final stages of signing a MoU with Chhattisgarh Renewable Energy Development Authority to identify suitable land for bio-crop plantation in the state and undertake other related downstream activities. BP has undertaken Jatropha plantation in 1,000 acres of land and has set up a guideline for Jatropha plantation to adopt uniform standards. HP has signed a MoU with Govind Ballabh Pant University of Agriculture & Technology in Pantnagar to plant 10 lakh. Jatropha saplings, install a transesterification unit and tissue culture-related R&D Further; it has sanctioned Teri to come out with a feasibility report for its bio-diesel initiative in Rajasthan and Chhattisgarh. According to studies carried out by Teri, a bio-diesel project over 20,000 hectare with 2,500 plants per hectare would cost Rs. 102.2 crore; with 1,650 plants per hectare it would be Rs. 70.2 crore. After factoring in capital expenditure and recurring cost, the bio-diesel cost would be Rs. 15.61 per litre. If sold at this price, the internal rate of return from the project would be 28.76%. However promising it may sound, there are still many hurdles to overcome and issues to be addressed before bio-fuel scans run engines. For one, fan engines can run with 10% blending of fossil fuel with bio-fuel without any alteration. For bio-fuel to become the mainstay of energy supply, newer engines would have to be designed. Another issue is the question of food security vs. energy independence. Bio-fuel production can be an income generator for the agri-sector. If returns were better, farmers would shift to growing bio-crops from cereal and grain, where returns are not as high. "There are many questions to be answered. Development of the bio-fuel sector depends on how the government would push it and how the industry would respond to it," said an independent analyst in the sector on condition of anonymity. It is important to address the issue of accommodating farmers in the value chain, he added. Some experts say that though it is claimed that jatropha can be cultivated in wasteland, its high water intake and toxic nature lays waste the land. If fanners grow Jatropha even in an inter-cropping pattern, the impact on soil could be adverse on other crops. And with India being deficient in edible oil, making bio-diesel an alternative would only deepen the crisis. However, research into this is also underway, because jatropha also has a very high protein content and could be used as a cattle feed once its toxic content is removed. "The protein concentration of Jatropha is 53%. This is one of the highest in a naturally occurring crop. Though it has certain toxic elements, research is underway to detoxify it and use it as cattle feed because of its immense potential," said Deepti Rai, senior project coordinator, Ayurvet. Jatropha is also a potential soil nutrient. So far, bio-fuel can only be blended with fossil fuel and act as supplementary. Though the advantages are multiple, varying from eco-friendly energy systems to cost advantages, bureaucratic hurdles have also stalled progress. "With the ministry of rural development and ministry of new & renewable energy vying for funds under the bio-fuel mission, there has been no progress because of the stalemate between the two," said a government official. Bio-fuels are a long-term strategic option. In the short- to medium-term, there are many questions to be answered and issues to be addressed. The various stakeholders, from farmers to the big organizations, have to be included while formulating strategies and identifying the way ahead.
New Delhi 29-Aug-2007
The Stone Age did not pass because stones finished. It passed because man found more sophisticated methods of hunting. Similarly, the Oil Age would not pass because fossil fuel will finish, but because man would again find better ways to fuel his needs." Mukesh Ambani. If returns were better farmers would shift to bio-crops from cereals and grain, where returns are not as high. Bio-Fuel was first used in 1898 when Rudolph Diesel used peanut oil to demonstrate his compression engine at the World Exhibition in Paris. Then, Henry Ford designed his automobiles to use ethanol, beginning from the 1908 Model T. Since then, though, bio-fuel lost out to fossil fuel, which enjoyed a cost advantage offered by government subsidies. It was again in the 1970s that bio-fuel started attracting attention, but the reasons were more political than technological. In 1973, OPEC reduced supplies and increased crude prices. Oil independence has since then become the prime agenda of governments across the world. And in India, too, oil majors are waking up to the potential of bio-fuel. Bio-fuel can be broadly classified into ethanol and bio-diesel. Ethanol, derived from soya bean, COM or sugarcane, is less toxic and is always produced from renewable sources. While the blending of ethanol in petrol is well documented, it is bio-diesel that is now in focus. 'Bio-diesel is produced from transesterification of vegetable oils. Jatropha has now become synonymous with bio-diesel. A study by The Energy & Resources Institute (Ten) on wasteland identification defined the procedures for the identification of land within forest wastelands and others in consultation with states for jatropha plantation. Six out of nine categories of wastelands were identified as potential areas for Jatropha plantation. According to climatic conditions and potentiality for plantation, 26 states were selected. Some 40 million hectre for potential Jatropha plantation was identified. "Jatropha offers many advantages in planting. It can stand severe heat, can grow in very poor soils and in saline conditions, and can handle dryness very well," said PP Bhojvaid, dean, faculty of applied sciences, TEN. Oil PSUs Indian Oil Corporation (IOC), Bharat Petroleum (BP) and "Hindustan Petroleum (HP) has set up elaborate plans to venture into the bio-diesel segment. The three have held joint exploratory discussions with the state governments of Uttarakhand, Chhattisgarh, Gujarat, Madhya Pradesh, Uttar Pradesh, Andhra Pradesh, Orissa, and Tamil Nadu and Jharkhand for collaborative projects in the entire value chain of bio-diesel: plantation and transesterification to blending and marketing. IOC is in the final stages of signing a MoU with Chhattisgarh Renewable Energy Development Authority to identify suitable land for bio-crop plantation in the state and undertake other related downstream activities. BP has undertaken Jatropha plantation in 1,000 acres of land and has set up a guideline for Jatropha plantation to adopt uniform standards. HP has signed a MoU with Govind Ballabh Pant University of Agriculture & Technology in Pantnagar to plant 10 lakh. Jatropha saplings, install a transesterification unit and tissue culture-related R&D Further; it has sanctioned Teri to come out with a feasibility report for its bio-diesel initiative in Rajasthan and Chhattisgarh. According to studies carried out by Teri, a bio-diesel project over 20,000 hectare with 2,500 plants per hectare would cost Rs. 102.2 crore; with 1,650 plants per hectare it would be Rs. 70.2 crore. After factoring in capital expenditure and recurring cost, the bio-diesel cost would be Rs. 15.61 per litre. If sold at this price, the internal rate of return from the project would be 28.76%. However promising it may sound, there are still many hurdles to overcome and issues to be addressed before bio-fuel scans run engines. For one, fan engines can run with 10% blending of fossil fuel with bio-fuel without any alteration. For bio-fuel to become the mainstay of energy supply, newer engines would have to be designed. Another issue is the question of food security vs. energy independence. Bio-fuel production can be an income generator for the agri-sector. If returns were better, farmers would shift to growing bio-crops from cereal and grain, where returns are not as high. "There are many questions to be answered. Development of the bio-fuel sector depends on how the government would push it and how the industry would respond to it," said an independent analyst in the sector on condition of anonymity. It is important to address the issue of accommodating farmers in the value chain, he added. Some experts say that though it is claimed that jatropha can be cultivated in wasteland, its high water intake and toxic nature lays waste the land. If fanners grow Jatropha even in an inter-cropping pattern, the impact on soil could be adverse on other crops. And with India being deficient in edible oil, making bio-diesel an alternative would only deepen the crisis. However, research into this is also underway, because jatropha also has a very high protein content and could be used as a cattle feed once its toxic content is removed. "The protein concentration of Jatropha is 53%. This is one of the highest in a naturally occurring crop. Though it has certain toxic elements, research is underway to detoxify it and use it as cattle feed because of its immense potential," said Deepti Rai, senior project coordinator, Ayurvet. Jatropha is also a potential soil nutrient. So far, bio-fuel can only be blended with fossil fuel and act as supplementary. Though the advantages are multiple, varying from eco-friendly energy systems to cost advantages, bureaucratic hurdles have also stalled progress. "With the ministry of rural development and ministry of new & renewable energy vying for funds under the bio-fuel mission, there has been no progress because of the stalemate between the two," said a government official. Bio-fuels are a long-term strategic option. In the short- to medium-term, there are many questions to be answered and issues to be addressed. The various stakeholders, from farmers to the big organizations, have to be included while formulating strategies and identifying the way ahead.