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Bio Fuel Industry

An Overview

History of Bio Fuels

Dates back to 1885 Dr. Rudolf Diesel built the first Diesel Engine with the Full Intention of running it on Vegetative Source and it was run with Pea nut Oil. In 1912, Dr. Rudolf Diesel Observed . The use

of vegetable oils for engine fuels may seem insignificant today. But such oils may in the course of time become as important as petroleum and the coal tar products of the present time

Global Scenario

World Energy Consumption to Increase by 71 % from 2003 to 2030. 100 Million Barrels will be the Per Day Requirement by 2015. Fossil Fuels Resources are fast getting Depleted. Four Barrels of Oil is being Consumed for every One Barrel Discovered Global Warming is being attributed to the Extensive Usage of Fossil Fuels.

EU Mandate - Kyoto Protocol - 2 % of their Fuel Consumption is from Bio Fuels since 2005 and is targeted at 5.75 % by 2010 There is at least one Biofuel project getting funded every week in US alone! There are 108 Bio Ethanol projects already under production and another 55 are under construction in US. One Biofuel project is being funded every 10 days. Over 130 Bio Diesel projects and about 24 Bio Ethanol projects exist in EU. At last count, 7 Biofuel Companies are listed in Australia and about 20 more are listed in Europe and US..

Indian Scenario

Indias Energy Demand is expected to grow an an Annual Rate of 4.8% for the next 2 decades Most of the Energy Requirement is satisfied by Fossil Fuels Domestic Production of Crude Oil can fulfill only 25 30 % of the National Consumption Crude Oil Imports for the Year 2006 07 was at 110.85 Million Tons

Current Crude Oil Price is at $ 64 per Barrel (135 Kg. per Barrel) Crude Oil Import Bill for the Year 2006 07 is at $ 56.99 Billion @ 10% of Indias GDP GOIs ambitious National Bio Diesel Mission to meet 20 % of the countrys diesel requirements by 2011 2012

The Bio Fuel Advantage

Reduced Emission of Harmful Pollutants Increased Employment Generation Better Engine Efficiency Energy Security and Decreased Dependence on Oil Imports Improved Social Well Being Increase in Nutrients to Soil Decrease in Soil Erosion and Land Degradation

Types of Bio Fuels

Ethanol and Bio Diesel Ethanol Ethanol is being sourced from food crops like Sugar Beet, Sugar Cane, Sweet Corn, Sweet Sorghum and is a potential threat to the food vs. fuel balance Ethanol in India is chiefly produced from by the fermentation of Molasses, a by product of Sugar Manufacture.

One Tonne of Sugar Cane yields 105 Kg. of Sugar;

40 Kg. of Molasses; 97 KWH of Power. From 40 Kg. of Molasses, 10 liters of Ethanol can be obtained. If Sugarcane is directly and fully used for ethanol manufacture, the yield of ethanol is 70 Litres pre Tonne.

Bio Diesel Bio Diesel is typically made from Tree and Vegetable Oils though animal fat can also be used. Bio Diesel is being produced from Oil Palm, Rape Seed, Soy Bean, Neem, Jatropha, Mahua, and Pongamia. Choice of Feed Stock is country specific and depends on availability. Jatropha, Pongamia, Neem, Mahua being non edible sources are the most promising Feed Stock for the future.

Advantages of Jatropha curcas

Cheaper Source of Feed Stock, as Feed Stock represents 85% of the Production Cost 30 32 % Oil Content Long Term dedicated source of Captive Feed Stock 30 40 Years Non Edible Source and hence does not compete with Food Crops Lower Gestation Period Lower Manure and Water Requirement

Adaptability to a wide variety of Marginal and Rain Fed Lands Not Browsed by Animals Seed Cake is an excellent source of Plant Nutrients A Tool for Poverty Alleviation Provides an annuity income stream to poor farmers owning unfertile lands

India An Emerging Destination for Bio Diesel Companies

Availability of Large Areas of Waste Lands, Marginal Lands and Unfertile Lands Availability of Employable Work Force Favorable Climatic Conditions Government Policies in favor of the Emerging Industry Growing Demand for Fuels.