Financial Daily from THE HINDU group of publications Friday, Sep 03, 2004 |
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Industry & Economy
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Non-conventional Energy How economical is bio-diesel? Our Bureau
Hyderabad , Sept 2 HOW economical is bio-diesel, which has found renewed interest from both the State Government and the Centre in recent months? As the situation stands today, bio-diesel produced especially from plants such as Jatropha curcus and Pongamia, work out to Rs 30 per litre, according to studies, which is more expensive than the commercially sold diesel, priced less than Rs 25 per litre. The promoters of bio-diesel argue that the utility of the fuel, which is derived from eco-friendly, renewable sources like vegetable oils, is diverse. It can partly or totally replace the petroleum-based diesel depending on the economics and the overall fuel demands. With the recent spurt in the efforts to increase the utilisation of bio-diesel, especially from jatropha plant, the Indian Institute of Chemical Technology (IICT), here is optimistic of developing an economically feasible technology process in the next six months. A bench scale process has been developed for catalyst free processing of jatropha seed oil, acid oil and other suitable vegetable oils. The crude product is further refined to obtain bio-diesel, meeting the required specifications, according to Mr R.B.N. Prasad, Head of the Oils and Fats Division. The IICT has made progress in the preparation of bio-diesel in pilot scale with the financial support of the Technology Mission on Oilseeds, Pulses & Maize (TMOP&M), of the Union Ministry of Agriculture. Given the support extended by the Planning Commission and the State Government, the bio-diesel produced from jatropha and other plant sources with the improved technology should help the fuel to become competitive after three years, he told Business Line. The Planning Commission had indicated that Rs 1400 crores should be allocated for the promotion of bio-diesel in three years. This included, research efforts, popularisation and providing financial support to entrepreneurs. About 5-6 years ago some non-governmental organisations (NGOs) had started promoting jatropha as an alternate fuel source, but it did not prove economically feasible, essentially because of the non-availability of good quality seeds and adequate financial backing to the cultivating farmers, he told Business Line. Some other issues to be addressed as for jatropha are the agronomy of the plantations, conversion into bio-diesel efficiency, utilisation of the by-products, performance of the vehicle engine and evolve means of ensuring that the farmer gets optimum return. On the advantages front, bio-diesel produced from jatropha plant contains less carbon monoxide, low sulphur, besides good lubricating properties, which make it suitable for replacing diesel in normal diesel powered vehicles, without much modifications. The jatropha tree plantations are also expected to recover eroded land and make them fit for agriculture purposes. In addition to its use as automotive fuel, the oil from the plant can be used to generate power and light up homes in rural and tribal areas, as demonstrated in Adilabad district. This application makes it cheaper as it is near to the place of cultivation. This time around, the Planning Commission has recommended a subsidy of Rs 30,000 per hectare and assurance of quality seeds supply under the mission programmes to promote bio-diesel. This step augurs well for efforts to propagate jatropha as bio-diesel, he said. While the IICT scientists have visited Germany and Austria to study the research efforts and technology that made good economics out of bio-diesel, senior Government officials from Andhra Pradesh have also visited Austria to make feasibility studies. The Austrian Government has offered its help to the State Government. The Andhra Pradesh Government's pro-active moves have brought in some small and medium enterprises to take up bio-diesel projects. Southern BioFuels, a joint venture initiative between the State Government and the Austrian firm are some of the projects under way.
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