Bio-Diesel A Driver For Future International Growth Problems & Prospects

PRESENTED BY:
Sunil Joshi Supriya Kumari Suman Kumar Sushmit Nigam Sourav Kumar

General Trends Of Demand Of Energy
‡ Demand for energy ± transport fuels as well as electricity ± has increased spectacularly throughout the world. ‡ There is growing debate about peak oil and oil prices have risen dramatically since 2002. ‡ Evidence is unequivocal that the Earth¶s climate is warming, very likely due to greenhouse gas emissions generated by human activities ± including burning fossil fuel for energy. ‡ There is a growing trend worldwide to look for alternative energy sources which are more secure and produce less greenhouse gases.

Question Arising? ‡ What are the drivers for a bio-fuel industry? .

Answer ‡ ‡ ‡ ‡ ‡ Reduce greenhouse emissions Provide for fuel security Provide land and water benefits Improve human health Provide benefits to all over the world .

These cars use 2/3 less fuel than cars run on petrol. ‡ Massive increase in ethanol and biodiesel production in US and Brazil. seeing dramatic developments worldwide: Rapid increase in diesel usage in Europe 30 % of cars in Europe now use diesel. ‡ Pilot plants for lignocelluloses to ethanol in US and Europe.Infrastructure for biofuel production ‡ The current biodiesel capacity in Australia is 323 ML with a planned capacity of 1122 ML. .

‡ Second generation technologies are being developed around the world. and may revolutionize the industry. palm oil and canola. They include conversion of lignocelluloses (woody or fibrous plant material) to a range of fuels including ethanol and synthetic diesel. ‡ Use of second generation processes (based on lignocelluloses) will minimize impact on food supplies for humans and animals.First and second generation bio-fuels ‡ First generation technologies are those which are currently commercially viable ‡ The Bio-Disel are generated from waste cooking oil. . tallow.

Infrastructural Structure Of BioDisel Plant Community Enterprise TM Bio-fuel production model Local Customers Oil Crushing Local Primary Production Bio-Diesel production Local Storage and Distribution Export Markets Terminal Gate Ethanol production .

where half the acres of canola is grown in Canada  He also ensure that we do not miss out on the opportunity to have another market and a biodiesel processing facility here in Saskatchewan. .Saskatchewan Canola Biodiesel  Brad Hanmer.  The Federal Government has a Biodiesel Initiative of 500 million litres of biodiesel by 2010  The canola producers of Saskatchewan. President of the SCGA (Saskatchewan Canola Development Commission) and Chairman of the Biodiesel Association of Canada.

the EU produced approximately 9 million metric tons of biodiesel in 2009 ‡ While installed capacity measured nearly 22 million tons. the EU produced 16. ‡ According to the European Biodiesel Board.Global Biodiesel Production and Market Report European Union ‡ The EU continues its reign as the world¶s largest biodiesel producer. but nearly two-thirds of the region¶s installed production capacity is currently idle.6 percent more biodiesel in 2009 than 2008. ‡ Even with this high percentage of unutilized capacity. . although not all areas of the region contributed to this increase. the EU produced about 65 percent of the world¶s biodiesel last year. ‡ Overall.

production in Germany. Greece and the UK decreased. ‡ While Austria. ‡ Currently. Netherlands. ‡ The Spanish biodiesel industry is making rapid strides towards increased production. Finland. Poland and Spain increased production in 2009. . the top three biodiesel producing nations in Europe are Germany. France and Spain.Global Biodiesel Production And Market Report Of EU Cont. which is by far the highest in Europe. Italy. ‡ It¶s already the seventh largest producer of biodiesel in Europe and there are more than 28 biodiesel production plants in the pipeline. Belgium.

a slight decrease compared to 2008 statistics. the profitability of EU biodiesel producers was negatively impacted by U. with the vast majority of those imports coming from Argentina. a division of Spain¶s Association of Renewable Energy Producers.000 tons of Argentine biodiesel entering the EU during the first quarter of this year. recently issued a report stating that 60 percent of the biodiesel utilized in Spain during the first quarter of 2010 was comprised of imports.000 tons of Argentine biodiesel entered the European market in 2009 ‡ With an additional 260. ‡ APPA Bio fuels. ‡ Statistics published by the EBB show that 850.Global Biodiesel Production And Market Report Of EU Cont. .S. biodiesel entering the market. 245 biodiesel plants exist in the EU. ‡ As of July. ‡ In 2007.

as Biodiesel Magazine was unable to secure any comprehensive statistics on the region ‡ However.Global Biodiesel Production and Market Report Africa ‡ As biodiesel industries in Europe and North America mature. says Ohene Akoto. executive director of Global Biofuels Services for Hart Energy Consulting ‡ He noted that Africa currently comprises an extremely small portion of the global biodiesel industry. ‡ Africa¶s biodiesel industry is currently in its infancy and there is a significant need for public education on biodiesel. Tammy Klein. 2009. owner and cofounder of Ghana-based Jatropha Africa . ‡ It¶s unclear how much biodiesel production capacity is present in Africa. development in Africa is just beginning. speaking at the Canadian Renewable Fuels Summit in Dec.

continue to lead the pack and are among the top five biodiesel-producing countries in the world. Argentina and Brazil. ‡ Argentina ranks as the world¶s fourth largest producer. due to its rapidly emerging domestic market.Global Biodiesel Production and Market Report South America ‡ South America¶s biodiesel industries are booming as a result of domestic demand along with strong export markets. ‡ Two countries. as of May.37 million tons coming from 19 producing plants registered under the energy secretary assigned to fulfill an 859. ‡ According to the Argentine Renewable Energies Chamber (CADER). The two nations' markets are distinctly different though. Argentina has an installed production capacity of 2.000-ton .

.Global Biodiesel Production and Market Report North America ‡ Three key populous cities where a majority of the country¶s people live²Mexico City. Guadalajara and Monterey²are the most promising biodiesel markets.

‡ The Malaysian government has been saying they will implement a biodiesel mandate for the past 3 years«but nothing has happened ‡ There are 21 biodiesel companies/producers in the country. .S.Global Biodiesel Production and Market Report Asia Pacific ‡ Like the current trend in the U. with at least six plants under construction. Malaysia. ‡ Nearly 74 percent of demand in the region is located in Indonesia. improve fuel security and stimulate domestic agriculture. ‡ In Malaysia. Frost & Sullivan.. said most governments in the region recognize that biodiesel can reduce oil imports. China and the Philippines. a global market-analysis group. according to Klein. biodiesel production in much of the AsiaPacific region remains in constant flux for similar reasons ‡ In an analysis of the Asia-Pacific biodiesel industry. Mission New Energy has just completed a 75 MMgy biodiesel plant.

it has exported just 23 million gallons ‡ The islands of Java and Sumatra of Indonesia will implement a 2. the Indonesian government plans to double palm oil production capacity to 40 million tons.5 percent biofuels mandate and more importantly. according to the Indonesian government.5 million tons. from last year.Global Biodiesel Production and Market Report Asia Pacific Contd. up 3 million. Over the next 10 years. the country will reinstitute its B5 standard within the year due to improved yields on both palm and jatropha. through June. ‡ Only a handful of existing plants are running now ‡ While in 2009. Malaysia exported nearly 76 million gallons of biodiesel. or 14 percent. . ‡ FAS report that Indonesia will produce a record 24.

About Indian Bio-Diesel Scenario ‡ Indian Bio Fuel Policy was finally announced on 23rd Dec 2009. ‡ The Main Reasons are non-availability of vegetable oil and government's policies. .000 tons per year. ‡ India's biodiesel processing capacity is estimated at 600. ‡ The government is now likely to fix a price of Rupees 34 a liter for purchase of biodiesel by oil marketing companies. ‡ Bio Diesel in India is virtually a non-starter.

 a) b) Feedstock price volatility The price of soybean oil fluctuates widely. This would require half the soybean oil that is now produced in the country annually.5 billion gallons/year of soybean oil-based biodiesel production Capacity in place in the United States by the end of 2008.34/pound (= $107/barrel) in the past five years. .Challenges facing the biodiesel industry  a. It has been as low as $0. b. Feedstock supply There could be 1. most of which is used for food.15/pound (= $47/barrel) and as high as $0.

 Quality concerns  Imports of biodiesel  Oversupply of glycerin Termination of subsidies and/or mandates Termination of subsidies and/or mandates .  Food Versus Fuel Debate ‡ This issue has begun to be raised in the context of using so much of our corn crop for the production of ethanol. but the same logic applies to biodiesel and could come into play if vegetable oil prices and related food prices get too high.Challenges facing the biodiesel industry Contd.

At this stage. ‡ More companies are offering this solution to the consumers. ‡ Already there are several types of companies using biodiesel as their main source for transportation. ‡ The Yellowstone Nation Park bus system uses a mixture of biodiesel and petroleum to run the whole fleet. ‡ Tests by the government have proven that this type of fuel is overall more functional and safe than petroleum based products. only diesel powered automobiles can use the new fuel. .Future Of Bio Disel ‡ The future of biodiesel is growing.

Soon biodiesel will become the new source of power. . ‡ Through research and constant testing. everyday scientists come closer to new alterative. biodiesel is more productive that the petroleum based fuel. ‡ Not only for diesel automobiles but for other power sources individuals desperately require to live and survive. this type of supply will be not only in vehicles but also in homes and factories.Future Of Bio Diesel Contd. ‡ As fossil beds run dry. ‡ Before long.

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