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 Neem Karanj (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 Companies NaturolLabland BiotechsNandan Biomatrix* LocationHyderabad/KakinadaMysoreHyderabad Products/BusinessBio diesel (30 million gallons per annum) and glycerine Jatropha seedlings/R&D in the Jathropha FeedstockPalm Oil/Soya Oil/Jatropha Jatropha Plantation initiativesYes: thru framer organizations NoYes – thru framer partnerships. Own cultivation planned FundingUSD 32 million – VC investments and debt NoneIn the process * A New Ventures Portfolio company

Standalone Bio Fuels Companies CleanStar*Renulakshmi Agro Industries Vayugrid* LocationPuneCoimbatoreKarnataka Products/BusinessServices to framers to help in biofuel cultivation Oilsseeds/SVOSVO FeedstockJatropha/Pongami a Castor/Pongamia Plantation initiativesNoneNot yetYes – thru framer partnerships FundingIn the processUnknownIn the process * A New Ventures Portfolio company

Larger companies diversifying into Biofuel Praj IndustriesWilliamson Magor LocationPuneKolkata Original BusinessBrewery and alcoohol manufacturing Plants BioFuel InitiatitivesPlants 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 IOCBPCLHPCL Biodiesel fromJatropha Cultivation inMPUPChattisgarh Refinery inOrissaUPChattisgarh StatusAnnounced in 2007 Subsidiary in renewable energy formed. Announced in 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, –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