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Role of BioFuels in the Indian Transport Sector

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Price of Indian basket of crude (US$/ barrel) Date. Petrol/Diesel price build up in Delhi ... 100% Jatropha biodiesel on Mercedes-Benz C220 CDI car during 2004. ... – PowerPoint PPT presentation

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Title: Role of BioFuels in the Indian Transport Sector


1
Role of Bio-Fuels in the Indian Transport Sector
  • Regional Workshop
  • Climate Change Mitigation in the Transport Sector
  • Aditi Dass
  • Winrock International India
  • ADB, May 24-25, 2006

2
Winrock International India (WII)
  • An independent, not for profit organization
    established in 1998
  • Pursuing activities related to energy,
    environment, natural resource management and
    sustainable development
  • Staffed by 60 professionals drawn from diverse
    disciplines
  • Affiliated to Winrock International, US

WII SPONSORS
  • Ministries and Departments of Central and State
    Governments
  • Bilateral and Multilateral Agencies
  • Foundations
  • Corporate Sector

3
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4
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5
Biofuel Options in India
  • Biodiesel - non-edible tree borne (TBOs) seeds
  • Pongamia pinnata (Karanja)
  • Jatropha curcas (Ratan Jyot)
  • Azadirachta Indica (Neem)
  • Shorea robusta (Sal)
  • Bioethanol molasses a byproduct of sugar
    industry

6
  • Biodiesel

Biodiesel
7
Government Actions on Biodiesel
8
Government Actions on Biodiesel
9
State level policies and activities
  • Andhra Pradesh
  • Jatropha plantation on 40,000 acres during
    2005-06
  • Free seedling material to Jatropha cultivation
    farmers
  • Grant to BPL (below poverty line) families to
    cover plantation cost
  • INR 9.85 million for R D on biofuel
  • Reduction in value added tax (VAT) to the
    biodiesel industries
  • Uttaranchal
  • Uttaranchal Biofuel Board created to coordinate
    biofuel activities.
  • Plantation of Jatropha is being taken up on
    un-irrigated degraded forest-land
  • Plantation during 2004-05 360 Ha
  • Plantation during 2005-0610,000 Ha
  • Plantation planned till 2012 200,000 Ha
  • State Government signed agreement with private
    company to process 600,000 tonnes of Jatropha
    seeds to bio-diesel

10
State level policies and activities
  • Chattisgarh
  • Biofuel development authority from 26th January,
    2005 under the Chattisgarh Renewable Energy
    Development Agency
  • 80 million Jatropha seedlings planted during
    2005
  • Target for 2006 - 160 million Jatropha seedlings
  • Most of these plantations are on government
    wasteland and fallow land
  • Pilot demonstration plantation in 300 acres of
    land of farmers in each district.

11
KSRTC experience use of pongamia oil in buses
  • Trials of 10 oil blend in 2 new buses taken up
    in 2004
  • Performance compared with 2 new diesel buses
    running on same route.
  • Initial problems in achieving proper mixing of
    pongamia oil with diesel solved by adding an
    enzyme-based additive
  • Cost of additive is INR 2200/litre and 1 litre of
    additive added in 6000 litres of fuel.
  • 12.5 mileage improvement observed in comparison
    with diesel buses
  • Slightly higher maintenance costs as fuel filters
    replaced after every 8,000 km (10,000 km on
    diesel operation)
  • Current market price of pongamia oil is INR
    28/litre compared to price of diesel at INR
    37/litre.
  • Overall saving of INR 3/litre by using blended
    diesel

12
Biodiesel Resources
  • Tree borne oil seeds
  • More than 300 different species of trees
    producing oil-bearing seeds. Current utilization
    of non-edible oilseeds is very low

Source Subramanian et. al, 2005
13
Wasteland Availability
14
Diesel and Biodiesel Demand
15
  • Ethanol

Ethanol
16
Ethanol
  • Production from following sources
  • Sugarcane - Major source of ethanol production in
    India. Average sugarcane productivity is about 70
    MT per/ ha and ethanol productivity is 70 lt/ 1
    MT of sugarcane.
  • Sugar beet Sugar beet cultivation and its
    processing to ethanol needs to be promoted in the
    country
  • Starch (grain, corn etc) - Corn oil is edible and
    its use in India for production of ethanol is
    not economically feasible.
  • Cellulosic biomass currently, economics are not
    favourable.

17
Government Actions on Ethanol
18
Government Actions on Ethanol
19
Ethanol Production
20
  • Biofuel as Transportation Fuel

21
Markets for biofuels as transportation fuel
  • Biodiesel
  • Commercial biodiesel production is yet to start
  • Current usage is limited to trials on vehicles
    and lab experiments
  • Current market price of biodiesel varies from INR
    55 -110/ lt
  • Cost of Jatropha biodiesel is high (INR
    80-110/lt) as Jatropha seeds are in high demand
    for raising new plantations
  • Bio-ethanol
  • During Mar 2003 to Sep 2004, 0.37 billion liters
    of ethanol purchased by the oil industry as part
    of the 5 ethanol blending program
  • During 2003-04, sugar cane production went down
    due to drought and ethanol producers were unable
    to meet demand of oil companies
  • During 2003-05, ethanol prices increased from INR
    15.50/l to INR 19.50/lt

22
Increase in the prices of petrol and diesel(as
of August 2005)
  • Retail prices in Delhi

23
Petrol/Diesel price build up in DelhiAugust 12,
2005
53 of the prices of petrol and 28.50 of the
prices of diesel are due to taxes, duties, cess,
etc
24
Bio-fuel price
  • Ethanol
  • INR 19.55/ lt
  • molasses (INR 5,000/ ton in 2004), stabilize
    around INR 2,500/ ton during 2005
  • ethanol at around INR 19/ lt.
  • alcohol beverage manufacturers (40-45 of
    molasses), are shifting towards grain-based
    alcohol
  • Biodiesel
  • INR 55-110/ lt, artificially high
  • prices expected to come down as harvest from the
    new plantations would become available
  • projected prices of biodiesel in various studies
    ranges from INR 16 50/ lt.

25
Issues/ Concerns
  • Food Security
  • Food grain production increased from average of
    187 MT during Five Year Plan Period (1992-97) to
    202 MT per annum during IX Plan period (1997
    2002), although average area under food grain
    production had remained constant at around 122
    mha
  • Increase food production by over 50 in the next
    two decades
  • Appx. 56 is arable land, used only for about 3
    months during the monsoon period. Adequate energy
    for irrigation, enable production of current
    levels of food grains, fruits and vegetables
    from a smaller area by multiple cropping
  • contd

26
Issues/ Concerns
  • Energy
  • About 125,000 villages in India are
    non-electrified/ poor, erratic and unreliable
    supply and farmers depend on diesel pump-sets for
    irrigation
  • Biofuels can help substitute a part of this
  • Environmental sustainability of biofuel
  • Environmental impacts of biofuels need to be
    studied in detail
  • Experiments in India on biodiesel use in vehicles
    have shown reduction in some important air
    pollutants

27
Benefits of biofuel
  • Generation of new employment opportunities in
    raising, reaping and processing of biofuel crops
  • Addition to the renewable energy options for
    decentralised distributed generation (DDG) of
    electricity and for motive power applications
    (water pumping, milling, etc.) in energy
    deficient rural India
  • Greening of wastelands and regeneration of
    degraded forest-lands, thereby helping in
    ecorestoration and preventing further land
    degradation
  • Better environmental performance through
    reduction in vehicular pollution and GHG
    emissions
  • Biofuels in vehicles results in reduction of
    SO2, particulate matter, CO, etc.

28
Biofuel in India - Challenges
  • Produce large quantities of biofuels at prices
    competitive with fossil fuel products
  • Deal with issue of land ownership. The land
    ceiling laws vary from state to state, for which
    resources need to be mobilized as per different
    kinds of farming.
  • Putting in place the back-to-back arrangements
    from farmer to expeller to bio-diesel
    manufacturer to final consumers is necessary for
    the successful implementation of the bio-diesel
    policy.
  • Financial viability of the biodiesel is yet to be
    proven. The varied experience in yield levels and
    crop management practices has led to hesitation
    for planting biofuel crops

29
  • Thank you !

30
Life cycle analysis for various fuels
Table-3 Biodiesel Emissions Compared to
Conventional Diesel
Source Central Pollution Control Board, GOI, 2002
31
Biodiesel pilot trials and lab-scale experiments
  • Daimler Chrysler carried out trials with 100
    Jatropha biodiesel on Mercedes-Benz C220 CDI car
    during 2004. Central Salt and Marine Chemicals
    Research Institute (CSMCRI) supplied 1,200 litres
    of Jatropha biodiesel for the trials. Covered
    6,000 km successfully with average mileage of
    13.5 km/litre
  • Trail by Indian railways on diesel locomotive
    using 5,000 litres of imported soybean biodiesel
    blends (B10, B20, B50, B100) during April-May
    2004
  • State Road Transport Corporations of Haryana,
    Gujarat, Andhra Pradesh and Indian vehicle
    manufacturers - Tata Motors, and Mahindra
    Mahindra carrying out trials with biodiesel
    blends.

32
Bio-diesel emissions compared to conventional
diesel
Table-3 Biodiesel Emissions Compared to
Conventional Diesel
33
Bioethanol Resourcs
  • Area under sugar cane production gt 2.5 times
    since 1950-51
  • In recent years both area and yield stagnated
  • 1.77 billion litres ethanol produced in 2001-02
    70 (potable/ industrial use), balance 0.53
    billion litres for fuel
  • Dependence on single source sugarcane
    molasses.
  • Availability expected to increase as the alcohol
    beverage manufacturers (40-45 of molasses),
    shifting towards grain-based alcohol.
  • Commercial production of alternate crops, like
    sweet sorghum, Cellulose materials etc

Source Singh J P, 2004
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