BioFuels & BioDiesels

Biodiesels is the main story and cultivation of oilseeds is the main challenge

Biofuels: Two Types

• Ethanol and Biodiesel. • Both are used as blends with petroleum diesel • Ethanol is alcohol fuel derived from sugarcane, wheat,

corn and biomass, • Biodiesel is made from natural oils such as animal fats or

vegetable oils.Why use bio fuels? 1. The use of bio fuels leads to lower GHG emissions. 2. Bio fuels are renewable

What are the considerations in the choice between ethanol and bio-diesel?

1. Compatibility? 100% Biodiesel can work in any diesel generated engines.

2. Costs? Biodiesels are more expensive

3. What is the energy needed to produce? Biodiesels relatively produce more energy than ethanol

Ethanol: Two generations

• First generation : derived from starch or sugar

• Second generation: derived from non food crops, biomass, wood, wood chips, stems, stalks, grass …

– Also known as cellulosic ethanol– Involves breaking down cellulose in woody fibers to derive ethanol

• Second generation is an improvement:– It does not compete with food production

The possibility of converting waste to energy lies at the heart of the second generation

What is bio diesel?

• Biodiesel is derived from vegetable and animal oil/fats:– Alcohol is added and glycerine is removed (the process is called

transesterification)

• Sources of bio-diesel:• Palm seed, soybean, peanut oil, jethropha seed, castor, rapeseed oil

• Different sources are used in different countries

• Advantages of biodiesel– Lower pollutant emission

– Net Carbon dioixide emission reductions

Straight Vegetable Oil (SVO)

• SVO is obtained from crushing oil bearing seeds– It is like pure vegetable oil, just like what you use to cook with.

– Biodiesel is derived from SVO

• SVO cannot run in diesel engines without modification– Biodiesel can

The distinction is important as in India

SVO can help run diesel pumpsets and DG sets

Mahindra has been working on a tractor engine which uses SVO

This means that in India local communities can both generate and use SVO.

Oilseeds in India

NeemKaranj (Pongamia)

Jatropha Mahua (Madhuca)

Castor

Biodiesel source: considerations

• Competiting use – Food/non food?

• Yield:– Agricultural yield? – Conversion ratio?

• Land & Climate– Can it grow on arid/semi arid land? – What is the water requirement (irrigation/rainfall) year

• Time – How long does it take to deliver oilseeds?

Standalone Bio Fuels CompaniesNaturol Labland Biotechs Nandan Biomatrix*

Location Hyderabad/Kakinada Mysore Hyderabad

Products/Business Bio diesel (30 million gallons per annum) and glycerine

Jatropha seedlings/R&D in the Jathropha

Jatropha seedlings/R&D in the Jathropha

Feedstock Palm Oil/Soya Oil/Jatropha

Jatropha Jatropha

Plantation initiatives Yes: thru framer organizations

No Yes – thru framer partnerships. Own cultivation planned

Funding USD 32 million – VC investments and debt

None In the process

* A New Ventures Portfolio company

Standalone Bio Fuels Companies

CleanStar* Renulakshmi Agro Industries

Vayugrid*

Location Pune Coimbatore Karnataka

Products/Business Services to framers to help in biofuel cultivation

Oilsseeds/SVO SVO

Feedstock Jatropha/Pongamia

Jatropha/Pongamia Castor/Pongamia

Plantation initiatives None Not yet Yes – thru framer partnerships

Funding In the process Unknown In the process

* A New Ventures Portfolio company

Larger companies diversifying into Biofuel

Praj Industries Williamson Magor

Location Pune Kolkata

Original Business Brewery and alcoohol manufacturing Plants

BioFuel Initiatitives Plants for manufacturing biofuels

JV with D1 Oils and cultivation of jatropha in NE states, Orissa and Jharkhand

Other companies reportedly exploring this space:

Ruchi Soya, Shiva Distillers, Dharani Sugars and Chemicals Limited ,

Global Companies in Indian Biofuels

• Mission Biofuels– Australian company

– Headquartered in Mumbai

– Main business: Jatrpha cultivation/wind mill operation

– Refinery coming up in Orissa

• D1 Oils – London based company

– R&D in Coimbatore

– Expanding thru JVs

• Williamson Magor: Eastern India

• Mohan Breweries: Southern India

Indian Oil Companies: Biodiesel forays

IOC BPCL HPCL

Biodiesel from Jatropha Jatropha Jatropha

Cultivation in MP UP Chattisgarh

Refinery in Orissa UP Chattisgarh

Status Announced in 2007

Subsidiary in renewable energy formed. Announced in 2008. JV formed with Nandan and Shapoorji

CREDA-HPCL JV formed in 2008 with Chattisgarh

NGOs in BioDiesel in India

• GOGVIP– established by Mr. Gulabrao Kale, in August, 1998.

– Operates in Ahmednagar district of Maharashtra.

– Promoting the cultivation of jatropha among farmers

• SUTRA– Brainchild of Dr.Udipi Shrinivasa (IISC Bangalore)

– Operates in villages of Karnataka

– Promoting pongamia among farmers