ALTERNATIVE

Biofuel - an alternative fuel for India

Biofuels, ethanol, Jatropha, Pongamia...words till recently rarely mentioned outside a select circle are fast coming into common usage. India is sixth in the world in energy demand, accounting for 3.5 percent of the world commercial energy consumption. Biofuels as an alternative fuel must also be viewed against the backdrop of the country’s huge demand for oil

Alarge part of the population has no access to commercial energy from hydrocarbons at all. India’s import of crude oil is expected to go up from 85 million tonnes to 147 million tonnes by 2007. Indian petrol reserves are expected to last for another 20 to 30 years. While the country is short of petroleum reserves, it has large stretches of arid land as well as good climatic conditions, with the potential to produce biomass that can be processed into biofuels. The President of India has also stressed on Energy Independence through research activities in non-conventional energy sources such as solar energy, biofuels, etc.

What are Biofuels?
Biofuels are liquid fuels made from esters, alcohols, ethers and other biomass chemicals. They are renewable fuels that can be produced in any climatic condition using already developed agricultural practices. Common biofuels include ethanol and biodiesel. Ethanol is made from sugars or starch, typically from grain or corn. Sugar mills are being encouraged to produce ethanol from sugarcane for blending with petrol, while efforts are on to cultivate such crops as Jatropha and Pongamia, which yield oil that can either be blended with diesel, or even used independently.

While Jatropha has clearly emerged as the preferred option for cultivation, Pongamia, a traditional species that has been around for ages, too has great potential. Jatropha is a hardy plant that can grow in any soil and under any climatic conditions. It grows up to a height of five feet. It needs little water, is insect-resistant, and has a life span of over 45 years. More than 95 percent of its oil is extractable and is being used as a fuel to replace diesel. The leaves of the plant are also used as an ingredient in several Ayurvedic medicines. Jatropha curcas is considered most suitable since it can be grown on land that are largely unproductive and are located in poverty-stricken and watershed areas or degraded forests. Jatropha is being planted under poverty alleviation programs that deal with land improvement. The advantage with Jatropha, a bush, is that it is easy to maintain and starts yielding from the fourth year, while Pongamia, a tree, requires more area and yields can be expected from the seventh or eighth year onwards. Reportedly, the Botanical Survey of India has identified more than 400 species of plants and trees that can yield such oils.

Why Use Biofuels?
According to Prof U. Shrinivasa, Department of Mechanical Engineering, Indian Institute of Science, Bangalore, "Pongamia oil has been found to be effective as a biofuel for running farm equipment and in power generation. Pongamia is cultivated for its nitrogen-fixing ability, and its leaves are used as a green manure. The oil from the seeds finds use in leather tanning and soap-making."

Of about 114 million tons of oil every year - 75 percent of which is imported at a cost of approximately Rs 120,000 crore – most is consumed by the transportation sector. Experts feel that the problem of the huge oil import bill and the price uncertainty can be mitigated by cultivating biofuel crops. Over 60 million hectares of wasteland is available in the country for cultivating biofuels. Each hectare would yield up to 3 tons of seed to extract one ton of oil. This would result into 30 million tons of oil.

Hydrocarbons, in India pre-dominantly diesel, are responsible for most of the transportation fuel in India; the transport sector is the most problematic as no realistic alternatives have been found so far. Overall transport of crude oil demand was >50 Mio Ton in 2001. Consumption of diesel is expected to rise at the rate of 5.6 percent annually. Domestic supply can currently satisfy 22 percent of this demand and dependence on crude oil imports is increasing. There is a growing gap between production and consumption. At the same time, per capita consumption with 480 kg oil equivalent is quite low. Rising and volatile prices and respective foreign exchange costs are one of the main risk factors of the Indian economic and social development prospects.

In Europe and the US, blends between 5 and 20 percent of biodiesel are used without engine modification. In France, 5 percent biodiesel blend is mandatory. Sometimes a low percentage additive for lubrication and sulfur removal from diesel fuel is used as well. In Europe, biodiesel is mainly made from rapeseed and sunflower; in the US from soybean; and in Malaysia, palm oil is being increasingly utilized. Nicaragua is cited as an example where Jatropha oil is used for biodiesel to replace petro-diesel.

Of Rs 1,500 crore of the total government contribution, Rs 1,200 crore is earmarked for nurseries and plantations. A legislation has been passed to use B5 (5% blend) and successively B20 (20% blend) as mandatory all over India. Biofuels reduce negative environmental effects through lower emissions and climatic impacts. Local production of bio-energy – alcohol, bio-oil, biodiesel – is projected to have a broad range of positive economic, social and environmental implications. Upgrading eroded and deforested land, creation of employment, and opportunities for income generation are in favor of biofuel. The objective of the National Program on Biofuel is to stop soil and forest degradation and its environmental implications, generate employment for the poor – in particular for women – reduce climatic change, and improve energy security.

Alcohol, mainly in the form of ethanol, is produced from sugarcane directly or from molasses, to replace 5 percent of petrol in spark ignition engines. Bio-oil, without further processing, is only suitable for sturdy compression ignition engines (diesel), or demands considerable motor modifications and maintenance. Therefore, the Indian government is focused on processing bio-diesel from plant oils. However, a direct use in rural engines, water pumps, tractors and generator sets to produce electricity are additional options to provide rural energy and energy security to the rural population.

Biodiesel, considered an equal replacement of petro-diesel (with 5% less efficiency), can be produced from transesterification from virgin or used vegetable oils (both edible or non-edible). It is meant to be produced in India mainly from Jatropha curcas and, to a lower extent, from other non-edible virgin oils (in particular Pongamia pinnata, called honge or pinnata, as well as mahua). It requires little or no engine modification up to 20 percent blend and minor modification at higher percentage blends. The use of bio-diesel results in substantial reduction of un-burnt hydrocarbons, carbon monoxide and particulate matters. It is considered to have almost no sulfur, no aromatics, and has about 10 percent built-in oxygen, which helps to burn it fully. Its higher cetane number improves the combustion quality. Almost all current emissions standards are expected to be reached with bio-diesel.

The strategy to promote non-edible oils is through buy-back arrangements with oil companies and through mandatory use of bio-diesel blends. The Jatropha program should be combined with other programs of the Ministry of Rural Development to attract growers, entrepreneurs and financial institutions so that a self-sustaining program of expansion takes off on its own, with the government playing the role of a facilitator. Hence, for the expansion phase, the government will need to “give only marginal financial support.” The rural community will have the first right of access to the oil for its own use. The responsibility for making sufficient processing units available will be with the Ministry of Petroleum.

Studies have revealed that “direct and indirect impact of bio-diesel, for example for employment generation, balance of trade, emission benefits, etc, are substantial and need to be accounted for” while considering the duty structure on bio-diesel and HSD.

Of the planned 13 Mio ha of Jatropha, 3 Mio ha will be from the 38 Mio ha under stocked forest, 3 Mio ha of hedge equivalent from 140 Mio ha of agricultural land, and 2 Mio ha for absentee landlords since Jatropha does not require looking after and gives a net income of Rs 15,000 per hectare.” In addition, there is 2.4 Mio ha from 24 Mb ha of fallow lands; 2 Mio ha from integrated watershed development programs; 1 Mio ha from stretches of public land along railway tracks, roads/canals, and 4 Mio ha from “other waste lands.”

Cost Economics
However, a comparison between the yields and economics of different edible and non-edible oils shows that production of non-edible oils for farmers is expected to be more viable than of edible oils. Duty structure should be designed in a way that the price of bio-diesel will be slightly lower than that of imported petro-diesel fuel.

As a by-product, the oil cake and glycerol are to be sold to reduce the cost of processing biodiesel to par with the oil price. The sales cost of biodiesel is expected to be very close to the cost of oil obtained for production, since the cost of transesterification is meant to be recoverable to a great extent from the income of oil cake (Rs 3-5 per kg) and glycerol (Rs 50 per kg). The cost of biodiesel is expected to reach between Rs 15 and Rs 16.3 at an assumed price of Rs 5 per kilogram of seed and at 3.2 kg of seed for 1 liter of oil. “Thus the plantation, oil extraction and production of bio-diesel are economically feasible.” Overall, oil bio-diesel recovery is expected to be 91 percent at an oil portion of 35 percent. There is a plant density of 2,500 trees per hectare assumed, in mixed forestry areas 2,500 trees each are considered one hecatre. An average seed yield of 1.5 kilogram per tree and 3.75 tons per hectare are expected corresponding to 1.2 tons of oil per hectare and 2.5 tons of fertilizer. Biodiesel is expected to be available in the market from 2005/2006 onwards. Work created of 300 persondays per hectare would allow 550,000 people to escape poverty in the first part of the program. A transesterification plant costs Rs 75 crore, and procurement and expeller another Rs 80 lakh.

Government of India Initiatives
In April 2003, the committee on development of biofuel, under the auspices of the Planning Commission of India, presented its report that recommends a major multi-dimensional program to replace 20 percent of India’s diesel consumption. The National Planning Commission has integrated the ministries of petroleum, rural development, poverty alleviation and of environmental and others. One objective is to blend petro-diesel with a planned 13 million ton of biodiesel by 2013 (>l,000 times compared to the present world Jatropha cultivation and production), produced mainly from non-edible Jatropha oil, and a smaller part from Pongomia.

In March 2004, a first portion for a National Program on Jatropha was released with Rs 800 crore to support cultivation of Jatropha on new fields and plantations of 200,000 ha. This is the first portion of a total program approved with a volume of Rs 1,500 core (300 Mio S/Euro) and 400,000 ha, to be realized within five years. The program intends to replace 5 percent of diesel consumption by 2006 with 2.6 Mio ton of Jatropha bio-diesel produced on 2.2 Mio ha, based on yields expected by the government.

To plant 11 Mio ha Jatropha, the program is to become a “National Mission” and mass movement, and wants to mobilize a large number of stakeholders including individuals, communities, entrepreneurs, oil companies, business, industry, the financial sector as well as government and most of its institutions.

Research and Development Needs and Activities
A number of research and development (R&D) needs have been defined by the program:

• Genetically improved tree species, to produce better quality and quantity of oil. This includes tree improvement programs, identification of candidate plus trees, standardization of nursery raising techniques (vegetative/seed/tissue culture), scientific data for planting density, fertilization practices, planting procedures
• Technology practices for adoption at the grassroot level
• Research on inter-cropping for agriculture, agro-forestry and forestry application
• Processing techniques including biodiesel and uses of by-products
• Utilization of different oils and oil blends including potential additives needed
• Blending, storage and transport of biodiesel
• Engine development & modification
• Marketing and trade
• Watering techniques, water and irrigation needs and wastewater use are not part of the program

There are some micro-missions or task forces planned for the different tasks:

• Ministry of Forestry; JFMCs (planting on forest lands)
• NOVOD (planting on non-forest lands)
• Ministry of Rural Development (other land implementation)
• Khadi Village and Industries Commission (KVIC) for procurement of seeds and oil extraction
• Ministry of Petroleum (transesterification)
• Different research agencies (for research and development). All R&D activities are to be coordinated by a committee under the Planning Commission.

Some of the institutions currently involved in R&D activities are:

• Punjab Agricultural University (PAU)
• Coiambatore Horticultural University with 250 I/day bio-diesel production facility
• Institute of Petroleum (IIP), Dehradun
• Indian Institute of Chemical Technology (IJCT)
• Indian Institute of Technology (Delhi, Chennai)
• Indian Oil Corporation (IOC) with 60 kg/day biodiesel production facility at Faridabad
• Forest Research Institute (FRI), Dehradun
• Mahindra&Mahindra (works on tractors from Karanji biodiesel; pilot plant in Mumbai)

Recent Developments in Biofuels

Indian Oil Corporation (IOC) has tied up with the Indian Railways to use the latter’s lands to grow Jatropha. The plant requires very little water or other inputs, which makes its cultivation easy and viable. Work had begun on bringing in the technology for the Jatropha-mixed fuel. The Madhya Pradesh government has decided to give a green cover to the Chambal valley – seeds of Jatropha (Ratanjyot) will be sprayed on the valley using an aircraft. The government of Chhattisgarh has been extensively promoting the cultivation of Jatropha and all government vehicles in that state are being run on biodiesel. Jatropha may also transform the economy of the region by providing a convenient source of livelihood for the villagers. Gujarat has become the first state in India to run commercial buses using biodiesel fuel. Initially, four buses using a B5 (5% biodiesel) blend will service a route between Gandhinagar and Ahmedabad. This is the first time that a regular commercial service is being started with biodiesel. Gujarat Oleo Chem Ltd has set up a biodiesel blending and extraction plant in South Gujarat and is providing biodiesel for commercial buses. The Indian Railways runs the Shatabdi Express on biodiesel. The Oil and Natural Gas Commission (ONGC) plans to process biofuel at new refineries – a 7.5 million ton refinery at Barmer district in Rajsthan, and a joint venture of MRPL and UK’s Cairn Energy in Anadhra Pradesh (Kakinada).

“Government serious about biofuels too” says Dr Raghu Vansh Prasad Singh, Hon’ble Minister of Rural Development, Government of India, who was the Chief Guest at the third international conference on biofuels organized by Winrock Interntational India, on January 18-19, 2006. Excerpts from his inaugural address. Iam happy being here at the Third International Conference on Biofuels which is conducted by Winrock International India and is part of a programme that sets an example which is beneficial to the state, nation and the world. The theme of the conference is very relevant and the discussions and recommendations will certainly, be of great utility. The main question before our country is food security and we are working on it, but one more question is emerging very rapidly and that is energy security. Energy has very deep roots in our society. Even in our mythology, we pray for the goddess of power, Dhruva. Energy has relevance in every sector and conventional energy sources are depleting natural resources. This is reflected by the growth in population of 2 percent per annum, while energy consumption is increasing by 5 percent, per annum. There is a discrepancy in energy production. The current increases in energy production are greater production but over-exploitation of natural resources. Over 79 percent of conventional fuel is imported, and this is reflected in the increasing costs of most commodities, which in turn affect the economy. Therefore, there is an imperative need for research and development. Significant efforts are required for increasing the production of biofuels. The sources are jatropha, pongamia and karanj. There are 104 slokas dedicated to the various uses of Jatropha. There are 5.5 crore hectares of wasteland, of which 3.5 crores can be used for cultivation of biofuels. Use of bio-diesel is increasing rapidly in India and overseas. The Chief Minister of Chhattisgarh uses bio-diesel in his official car. Farmers need to be educated and the benefits of biofuel need to be disseminated. Good harvesting practices increase production in many folds. Marketing channels need to be set up. To achieve these objectives, Ministry of Rural Development works as the nodal agency. The Planning Commission has approved, in principle, the recommendation of DPR to set up the National Biodiesel Misson (NBDM) and Rs 50 crores, has been sanctioned and it is estimated that 4 lakh hectares land will be used for this purpose, between 2006 and 2007 thereby, saving; oil, the environment and foreign exchange. Production and use of biodisel was considered unprofitable, earlier. It is now clear that that these projects are economically viable. This requires educating and convincing farmers, for which a clear understanding of their ground realities is required along with the establishment of distribution channels. The government is willing to act on recommendations emerging from this International Conference. The agenda must include popularizing and promoting biofuels to influence public opinion. For this, public-private partnerships are necessary. Processing and marketing facilities are very important. Currently, biodiesel consists of a 5 percent addition to conventional fuel. Research and development can increase the use and percentage of biodiesel. Biodiesel projects will also address poverty and unemployment. Biodiesel projects have the potential to employ 338 people per hectare per year, which is important to the National Rural Employment Guarantee Scheme of the Govt. The government, non-government organizations and private partnerships will have to work together for energy security in the field of biodiesel. There are 6 lakh villages and the 74 crore people who live in these villages are the potential partners in this programme. I hope this conference will be a milestone for energy security and biodiesel. I wish the conference a grand success.

References

1. A report on biodiesel by the Planning Commission, 2003
2. Alternative Fuel Option, Petroleum Update, OCT, 2005
3. www.centralchronicle.com/20041204/0412024.htm
4. www.thehindubusinessline.com/2004/01/04/stories/20040104014602 00. htm
5. www.deccanherald.com/deccanherald/jul222005/national1240202005721.asp
6. www.greencarcongress.com/2005/03/gujarat_india_b.html

Courtesy: Dr Neeraj Anand