Download Diesel Substitutes from Oilseeds

Paradigm Shift Towards Climate Change
and Sustainable Development
Dr. Jyoti Parikh
Integrated Research and Action for Development,
New Delhi
Integrated Research and Action for
Development
A ‘think tank’ that works with ‘action tanks’
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Policy Advocacy and Dissemination
Bio-Diesel Summit “A Discussion Forum for Bio-diesel Stakeholders”
Review paper on Bio-energy for Energy Assessment - TIFAC
Research Analysis and Consultations
Integrated Analysis of Diesel substitutes for Oil seeds in India-PetroFed
Action Projects with Community Participation
Rural Micro enterprise Model for Bio-Fuel Extraction in India
Village Energy Security Program in two hamlets of Gujarat
Seminars/Training/Workshops
IV International Training Program on “Role of Renewable energy in Energy
Planning and expanding Livelihoods Options”, New Delhi
Training Program for the member of Bawal Bio-diesel Cooperative under the
project “Rural Micro enterprise Model for Bio-fuel extraction in India”
Biofuel for Sustainable Development
1. Biodiesel for National Fuel Needs
2. Biodiesel vs. Alcohol
3. Biodiesel for Transport and Rural Energy Security
4. Addressing Public Perceptions (Myths and Facts)
5. Biodiesel and Climate Change
1. Biodiesel for National Fuel Needs
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Provide local solutions for national security
Offer village level energy security
Short gestation periods and therefore cut down delays
Technology Components can be simplified
Provide employment opportunities for unskilled and semiskilled
- Lead to sustainable energy solutions
- Environmentally friendly
1. Biodiesel for National Fuel Needs (contd..)
Background
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India spends $56 billion annually on oil
& gas imports
In 2006-2007, India consumed 146
million tons(MT) of crude oil and
petroleum products-75% was imported
India has only 726 MT of economic
reserves of crude oil left, whereas the
demand exceeds 132MMT (2006-07)
(Source: MoP&G, 2006-2007)
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HOW TO BRIDGE SUPPLY DEFICIT?
1. Biodiesel for National Fuel Needs (contd..)
India’s Energy Scenario: Commercial Energy Mix: 2000-2005
2005-06
CAGR (%)
2000-01 to 2005-06
128.88 (MT)
4.68
28.98 MT
1.78
407.28 (MT)
5.63
30.06 (MT)
5.54
8.59 MT
6.03
43.516 MT
4.39
Nuclear Electricity
1.49 MT
0.545
Non-Utilities
6.37 MT
6.13
Total
655.166
5.16
PoL Products
Natural Gas
Coal
Lignite
Hydel Electricity
Thermal
1. Biodiesel for National Fuel Needs (contd..)
Oil Yielding Plants
450 varieties identified in various parts of India
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Jatropha curcas or Ratanjot
Pongamia pinnata or Karanj
Calophyllum inophyllum or Nagchampa
Hevea brasiliensis or Rubber seeds
Calotropis gigantia or Ark
Euphorbia tirucalli or Sher
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Boswellia ovalifololata
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1. Biodiesel for National Fuel Needs (contd..)
1 MMT of Jatropha oil needs
Yields
@1.5 kg/plant
@2.0kg/ plant
Land (m.ha)
1.05
0.78
Labor-Plantation (m.person days)
335
250
21
16
3.28
3.28
Seed collection (m.person days)
Seeds (mmt)
Processing Outputs
Clean Plant Oil (mm.T)
1.0
Cake* (mm.T)
1.9
Glycerol (mm T)
0.09516
1. Biodiesel for National Fuel Needs (contd..)
Financial Analysis
Following assumptions are also made in financial computations:
 Book rate of Depreciation is considered to be 8%
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Debt/ Equity ratio is assumed to be 1:1
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Interest rate on loan is considered to be 6% on reducing
balance. It is assumed that repayment will be in 15 equal
installments
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It is assumed that the projects would enjoy tax Holiday for 15
years of operation
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The Capacity of the plant is considered to be 10000 Metric
Tonne per Annum for all cases.
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Capacity utilization is assumed to be 70% in year1, 80% in
year2 and 100% thereafter.
1. Biodiesel for National Fuel Needs (contd..)
Assumptions
Assumptions
Base
case
Base
case-A
Base
case-A
Pessimi
stic
Case
Capital Cost
Rs./MTA Capacity
15000
15000
15000
20000
Seed Cost Rs./Kg.
4
5
6
4
Other Operating
Costs Rs.
Lakhs/Yr. For
10000MTA plant
748
Byproduct Credits
Rs.Lakhs/Yr.
@Rs.2/kg. of Oil
Cake, Rs.60/Kg.
for Glycerol
1016
Sales Price Of Biodiesel Rs. 250/Litre
Pessimi
stic
Case A
Pessimisti
c case B
20000
20000
5
6
1. Biodiesel for National Fuel Needs (contd..)
Price v/s IRR curve
price vs IRR(with by product credit)
100%
IRR
80%
60%
40%
20%
0%
25
24
23
22
21
20
19
18
17
16
15
13
12.5
Price of biodiesel(Rs )
IRR Case 5
IRR Case 6A
IRR Case 5A
IRR Case 6B
IRR Case 5B
Case 5 : Base case
Case 6 : Pessimistic Case
IRR Case 6
1. Biodiesel for National Fuel Needs (contd..)
Biodiesel - Systems Approach
Plantation
of Oil
bearing
trees
Separation
of seed,
kernels,
Procureme
nt of seeds
plantation
of Oil
bearing
trees
Oil
extraction,
blending
and
processing
Modification
needed to use
in Transport
vehicles,
stationary
equipment,
and oil cakes
Energy
Policy
2. Biodiesel vs. Alcohol
Biodiesel
Alcohol
Biodiesel
Fuel Stock
Sugarcane
Jatropha, Karanja
Familiarity
Familiar crop with
infrastructure yields,
economics
Parameters yet unknown
Exist
Yet to be created
Farmers (rich)
Oil Industries
Small farmers
Institutions
Benefits
3. Biodiesel for Transport and Rural Energy
Bio-diesel
Transportation
Rural Energy Security
Scale ?
Large Scale : 2 to 10 mt
and more
Small & Medium: few
tonnes per day
How ?
Corporate Farming
Community and Panchayat
3. Biodiesel for Transport and Rural Energy (contd..)
Bio-diesel
Transportation
Rural Energy Security
Resources
Large investments & Land
requirements
Large wastelands
Small pockets of community
land or hedges or wastelands
Who ?
Oil Companies
Co-operatives
When ?
10 year horizons
Solutions to large energy
problem
3 to 5 years, more immediate
Large no. of families but not
large amount of energy
4. Public Perceptions
Myth 1: Prices of Corn, Wheat & Cereals have gone up
because of biofuels
Fact : This may apply to Alcohol only made from
grains. Even-so,the acreage is not substantial
enough to make such an impact.
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4. Public Perceptions (contd..)
Myth 2: Adverse impact on food security of poor and
will worsen hunger
Fact : Hunger is observed even when there is no food
shortage. Poor need income for which they can
buy food. Biodiesel generates income from
plantation, caring and finally using it for
livelihood
4. Public Perceptions (contd..)
Myth 3: There is no land available for biodiesel.
Fact : Land is available in small amounts but
with many Panchayat around the
country. Additionally on the roadside
plantations and hedges also possible.
4. Public Perceptions (contd..)
Myth 4: Energy Balance (Uses more Energy than it
gives)
Fact : Depends whether highly mechanised
agriculture, irrigation and long distance
transports involved.
4. Public Perceptions (contd..)
Myth 5: Farmers are unwilling to grow non-edible oil
seeds
Fact : Depends on the price they get and
alternative incomes from land
5. Biodiesel and Climate Change
CDM Opportunity and Biofuel
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To finance projects in developing countries to reduce GHG gases.
To implement clean technology and sell the resulting carbon credits to country
that can use it to meet GHG targets.
To identify biofuel baseline and monitoring methodology.
To strengthen the sustainable development goal of CDM, which is currently
under achieved.
5. Biodiesel and Climate Change (contd..)
Current Status of Biofuel in CDM
As of June 2006, no baseline methodologies for biofuel production and
utilization have been approved by the CDM Executive Board. However, five
methodologies have been submitted and are under review. Approval of one
or more of these would improve chances for biofuel CDM projects
significantly.
- 30TDP biodiesel CDM projects in Andhra Pradesh, India
- CDM project on biodiesel submitted by PCRA to MoEF
5. Biodiesel and Climate Change (contd..)
Overview of Project
5. Biodiesel and Climate Change (contd..)
Overview of Project (contd..)
Some observations from the table in previous slide:
• Most projects are in Thailand, and all of them in Asia.
• Most projects produce biodiesel, only one ethanol.
• Biofuel sources differ much, including palm oil and different types of waste.
• The project scale (in terms of CER generation) is comparable to most other CO2 projects
such as energy efficiency and many biomass projects, i.e. 50 – 200 ktCO2/yr.
• CO2 reduction, as claimed on a life-cycle basis, is between 70- 97%; often agricultural,
transportation, and biofuel production emissions are considered (the latter is renewable
several cases).
• Four methodologies have received a ‘B’-comment from the CDM EB, implying that the
methodology can be resubmitted subject to required changes.
INDIAN INITIATIVES
Indian Initiatives:Utilization
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The Government of India has been assisting
farmers in cultivating Jatropha Curcas
BIS has amended the specifications of diesel
to permit the blending of Bio-diesel
Indian Oil Corporation (R&D) has set up a
biodiesel production facility of 60 kg/day at
Faridabad
PCRA has set up a Bio-Diesel Centre and
submitted CDM project for bio-diesel activities
Contd…
Indian Initiatives:Utilization
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HPCL has also set up an experimental project at
Mumbai involving 25 BEST(public transport)
buses using 5 per cent, 10 per cent and 20 per
cent blends of bio diesel in diesel.
Mahindra & Mahindra Ltd. pilot plant utilizing
Karanj for biodiesel has carried out successful
trails on tractors in Mumbai
IOC- Indian Railways have conducted
successful Shatabdi Train trial runs using Biodiesel
Criteria for Land Availability
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Department of Land Resources under Ministry of Rural
Development, GOI has proposed the criteria for
selection of lands for Jatropha plantation. These are:
Annual rainfall should exceed 600mm
The pH of soil should be less than 9 (Wasteland category –
Alkaline/saline slight )
Temperature should not fall below 00 C. In the Himalayan states
in India there are places located above 1500 meters where
temperature falls below 00 C. Hence the elevation of lands for
plantation in the Himalayas should not exceed 1500meters
The slope of land should not exceed 300
The land should not be waterlogged (Wasteland Categories
6&7)
The land should not be barren rocky/stony (Wasteland
Category 26)
Cost of cultivation of Jatropha
Assumptions: Seed yield ( as in previous slide) &
Seed Price: Rs 5/kg
Expenditure
Income
Year
(Rs/ha)
(Rs/ha)
Ist year
25445
0
2nd year
7373
625
3rd year
4933
1250
4th year
5413
10000
5th year
6313
12500
6th year
7813
18750
Wasteland that can be considered for
jatropha plantation
Shallow/Medium Ravinous
1.5 Mha
Land with scrub
15.1 Mha
Land without scrub
3.7 Mha
Saline/alkaline slight
0.4 Mha
Shifting cultivation
3.5 Mha
Degraded forest scrub
10.9 Mha
Total wasteland suitable for plantation
31.1 Mha
IRADe INITIATIVES
BIOFUEL EXTRACTION UNIT
Bawal (Haryana)
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Partners Involved
Village Panchayats
Bawal Biodiesel Cooperative (BBC)
Regional Research Station of Chaudhary
Charan Singh Haryana Agriculture University,
Bawal
Biofuel Extraction Unit, Bawal (Haryana)
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Project Activities Completed
Awareness Generation
Formation of Bawal Bio-Diesel Cooperative (BBC)
Training Programmes
Policy Support
Field Implementation
Building Construction and Commissioning of Oil
Extraction Unit
Dissemination
Biofuel Extraction Unit, Bawal,Haryana (contd…)
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Specific Objectives
Formulate Micro enterprise Model for biomass
based energy system at village level
Provide easy access to alternative fuels in
rural areas
Provide sustainable livelihood options for
women at village level
Process locally available Jatropha and other
oilseeds
Dedication Ceremony of Biofuel Extraction Unit
in Haryana
Dedication Ceremony of Biofuel Extraction Unit
in Haryana (contd…)
H.E. Dr. A.R. Kidwai, Governor of
Haryana is dedicating Biofuel
Extraction Unit to Villagers
Dedication Ceremony of Biofuel Extraction Unit
in Haryana (contd…)
Building of Biofuel Extraction Unit, Bhadoj,
Bawal
Gram Panchayat Allawapur,
Village- Bhadoj Welcomes
Dedication Ceremony of Biofuel Extraction Unit
in Haryana (contd…)
Dr. A. R. Kidwai,
Governor of Haryana
Dr. Kirit Parikh,
Member Planning
Commission, GOI
Dedication Ceremony of Biofuel Extraction Unit
in Haryana (contd…)
Dr. Jyoti Parikh, Executive
Director, IRADe
Capt. Ayay Singh, Revenue
& Irrigation Minister,
Haryana State
Dedication Ceremony of Biofuel Extraction Unit
in Haryana (contd…)
Women from near by gram
panchayat’s- Listening the messages
View of large gathering –
Approx.2000 rural people attended
Bio-Diesel Summit
“A Discussion Forum For Biodiesel Stakeholders”
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Specific Objective of Summit:
Delivery of equitable and accessible bio-diesel policy
Providing technical know-how for commercial
cultivation of oilseeds crops and bio-diesel processing
Functioning as information hub
Liaison and linkage among all stakeholders
Energy Security and Climate change mitigation
Bio-Diesel Summit (contd..)
Highlights
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Key Issues (Socio-Economic,
Financial and Environmental Issues)
Addressed at the Summit
Overview of Indian Initiative
Overview of methods/best practices
of Jatropha plantations and other
oil-bearing trees
Analysis of existing oil extraction
and processing techniques
Marketing and End Use Practices
Government Policies on Bio-Diesel
Opportunities and Challenges in
Biodiesel Processing
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Participants
Public and Private Sector
Companies in business of
cultivation, oil processing
and suppliers
Ministries of Central and
State government
International Funding
agenicies
Bank and Financial Institutes
Experts and Academics
Bio-Diesel Summit (contd..)
Highlights
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Strategies Developed
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Cultivation of Oilseeds & Land
allocation
Coordination with Local Bodies
for Nursery Raising
Institutional Mechanism for
Raising Plantations
Yield Data & Subsidies for
Plantation
Authenticated Information on
Cost of Establishment
High Initial Seed demand
Minimum Support Price (MSP)
for oil seeder with Buy Back
Guarantee
Entrepreneurship Promotion
and Private Sector Participation
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Management of Byproducts
Tax & Promotional Policies
Extraction and Transesterification
Developing Biorefinery Concept
Interministerial Cooperation
Support for Research and
Development
Biodiesel Production: Corporate
Social Responsibility
Oil Seed import
Setting up of a National Bio-fuel
Development Board
Gradual Subsidy Reduction
Issues to be Addressed
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Research should be undertaken to improve the yields and value
addition through alternative uses such as medicinal ingredients
and biopesticides.
Studies should be done on post harvest handling methods.
A series of field demonstrations must be established using
currently available information, to highlight the economic
viability of cultivation of species such as Jatropha as alternative
options on degraded lands and community wastelands.
It is necessary to establish clonal seed orchards and
develop mass multiplication techniques to ensure
easy supply of elite planting material to growers.
Contd…
Issues to be Addressed
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Agronomic studies to standardise cultivation practices
such as spacing, pruning, nutrition and production
system must be carried out under different agroecological conditions
Realistic economics of production must be worked out
for a range of soil, environment and management
conditions.
Nodal agencies must be identified in different regions to
procure superior quality seeds and plants and technical
information.
Roadmap….
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How to mobilize cultivation? What scale is possible?
What policy framework (financial interventions,
mandate and standards) is needed?
What coordination is needed with vehicle industries?
Cost sharing, modernization of equipment. Will they
also need direct subsidy?
What institutional structure is suitable that permits
flexibility and reduces constraints and barriers?
Can CDM help in generating the needed revenues?
What policy should be avoided to ensure CDM
benefits?
Publications
THANK YOU
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