Contemporary Issue on

Biofuel

Management

In The Partial Fulfillment of Masters of Business Administration2009-2010Rajasthan Technical University, Kota

Deepshikha college of technical education , Jaipur

Submitted By:

Submitted To: (MBA-II nd SEM)

JITENDRA

TABLE OF CONTENT S.No. CONTENT Pag e No. 3 4 4 5 6 7 8 9 9 9 12 13 18 19 20 21

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

AT A GLANCE WHAT IS BIOFUEL ? HISTORY OF BIOFUELS INTRODUCTION BIOFUEL INFORMATION EXAMPLE OF BIOFUEL MANAGEMENT TYPES OF BIOFUEL
BIOFUELS USED?

BENEFITS OF BIOFUEL ADVANTAGES & DISADVANTAGES ECONOMIC BENEFITS & THE FUTURE OF BIOFUELS INDIAN SCENARIO & BIOFUEL IN INDIA & COMMERCIAL PRODUCTION OF BIODIESEL : INDIAN EFFORTS INDIAN BIOFUEL INDUSTRY & BIOFUELS
SWOT EST

MANAGEMENT PRACTICES FOR

CONCLUSION BIBLIOGRAPHY & WIBLIOGRAPHY

AT A GLANCE
".While the fuel issue may not be particularly new, the relative cost of fuel has been the biggest recent talking point in fleet management and it would come top, or close to the top, with every fleet decision maker, wherever they are in the world. As a result, the continuing volatility in fuel prices has emphasized the importance to the fleet industry of effective fuel management and accessibility of information to help control costs at every stage. It is important for global businesses to understand exactly how much they are spending on fuel across all of their country operations, so that they can look for cost saving opportunities. Nick Brownrigg, CEO of Masterlease Group, commented

Biofuel management Related quotas

Ethanol and biodiesel allow people to burn a cleaner form of energy. - Mark Kennedy So organic farming practices are something that, to me, are interlinked with the idea of using biodiesel. - Daryl Hannah The biodiesel we use is 100 %;it has no petroleum in it. It was already used in fryers throughout our local area. It's already had one life and now it's going to be used again, which is nice. - Daryl Hannah We should increase our development of alternative fuels, taking advantage of renewable resources, like using corn and sugar to produce ethanol or soybeans to produce biodiesel.
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- Bobby Jindal

What is biofuel ?
Biofuels are combustible fuel produced from biomass. These fuels are usually in the form of alcohols, esters, ethers, and other chemicals produced from biomass. The two main biofuels are biodiesel and bioethanol. Biofuels are produced from living organisms or from metabolic by-products (organic or food waste products). In order to be considered a biofuel the fuel must contain over 80 percent renewable materials. It is originally derived from the photosynthesis process and can therefore often be referred to as a solar energy source. There are many pros and cons to using biofuels as an energy source. Broadly speaking, biofuel refers to any solid, liquid or gas fuel that has been derived from biomass. It can be produced from any carbon source that is easy to replenish such as plants. One of the main challenges when producing biofuel is to develop energy that can be used specifically in liquid fuels for transportation.

History of Biofuels
Biofuels in the solid form has been in use ever since man discovered fire. Wood was the first form of biofuel that was used even by the ancient people for cooking and heating. With the discovery of electricity, man discovered another way of utilizing the biofuel. Biofuel had been used since a very long time for the production of electricity. This form of fuel was discovered even before the discovery of the fossil fuels, but with the exploration of the fossil fuel like gas, coal, and oil the production and use of biofuel suffered a severe impact. With the advantages placed by the fossil fuels they gained a lot of popularity especially in the developed countries. Liquid biofuel have been used in the automotive industry since its inception. In the period of World War II, the high demand of biofuels was due to the increased use as an alternative for imported fuel. In this period, Germany was one of the countries that underwent a serious shortage of fuel. It was during this period that various other inventions took place like the use of gasoline along with alcohol that was derived from potatoes.

Britain was the second country which came up with the concept of grain alcohol mixed with petrol. The wars frames were the periods when the various major technological changes took place but, during the period of peace, cheap oil from the gulf countries as well as the Middle East again eased off the pressure.

Introduction
Biofuels are fuels derived from living plants, animals or their byproducts which are not more than 20-30 years old. Biofuels contain stored solar energy and are a renewable source of energy, since the plants can be grown again. Unlike petroproducts , all biofuels are biodegradable and do not damage the environment when spilled. As demand and prices of crude oil increase, more countries are encouraging the use of biofuels by offering tax incentives. Wood from trees and manure from cattle (cow dung) are the most widely used biofuels used for cooking and other household applications in poor countries. Biogas for cooking is derived from industrial and household waste by the anaerobic digestion. Biogas contains methane. Chemical processes can also be used to produce biogas from industrial waste. Microalgae may be used as an energy source in future, as their yield per acre is the highest compared to other sources. Biodiesel is one of the most popular biofuels , since it can be used as a replacement for diesel in many applications. Biodiesel is derived from different agricultural products depending on the availability in that region. In India, jatropha and pongamia are used for biodiesel. In South East Asia , palm oil which is a high yiel biofuel is used, but it is an edible oil and is expensive. In Brazil, ethanol from Sugarcane and in USA , corn and soybeans are used. Biodiesel can also be made from waste cooking oil, usually collected from hotel kitchens. Biodiesel is yellow in color and has a higher boiling point compared to petrodiesel. The "B" factor is used to designate the amount of biofuel in the biodiesel mixture, B20 to indicate fuel containing 20% biofuel , B100 indicates 100% biofuel. Biodiesel will corrode the rubber linings and gaskets of older diesel engines, so it is should be used only in engines with synthetic rubber lining. Pure biodiesel can be used directly as a fuel in warm weather but may solidify at cold temperatures. Most vehicle manufacturers do not give any warranty for vehicle operation with biofuels. Biodiesel from jatropha is initially used as a fuel for generators and agricultural equipment like pumps.

Biofuel Information
Also known as agro fuel, these fuels are mainly derived from biomass or bio waste. These fuels can be used for any purposes, but the main use for which they have to be brought is in the transportation sector. Most of the vehicles require fuels which provide high power and are dense so that storage is easier. These engines require fuels that are clean and are in the liquid form. The most important advantage of using liquid as fuel is that they can be easily pumped and can also be handled easily. This is the main reason why almost all the vehicles use liquid form of fuels for combustion purpose. For other forms of non transportation applications there are other alternative solid biomass fuel like wood. These non transportation applications can bring into use these solid biomass fuels as they can easily bear the low power density of external combustion. Wood has been brought into use since a very long period and is one of the major contributors of global warming. Biofuels are the best way of reducing the emission of the greenhouse gases. They can also be looked upon as a way of energy security which stands as an alternative of fossil fuels that are limited in availability. Today, the use of biofuels has expanded throughout the globe. Some of the major producers and users of biogases are Asia, Europe and America. Theoretically, biofuel can be easily produced through any carbon source; making the photosynthetic plants the most commonly used material for production. Almost all types of materials derived from the plants are used for manufacturing biogas. One of the greatest problems that is being faced by the researchers in the field is how to covert the biomass energy into the liquid fuel. There are two methods currently brought into use to solve the above problem. In the first one, sugar crops or starch are grown and through the process of fermentation, ethanol is produced. In the second method, plants are grown that naturally produce oil like jatropha and algae. These oils are heated to reduce their viscosity after which they are directly used as fuel for diesel engines. This oil can be further treated to produce biodiesel which can be used for various purposes. Brazil produces sugar cane, Europe produces sugar beet and wheat while,

China produces cassava and sorghum, south-east Asia produces miscanthus and palm oil while India produces jatropha.

Example of Biofuel management

As of 2009, more than 15 types of vehicles that use biodiesel fuel have been recently released by their manufacturers. The biodiesel and biofuel trucks that are available include the 2009 Dodge Ram 2500 and the 2009 Ford Super Duty. Some trucks that will be available in 2010 and beyond include the Ford F-150 Light Truck and the GM Chevrolet Silverado. Compact cars, vans, and sport utility vehicles have also been produced with biofuel capabilities. The Touareg, Jetta TDI, and Jetta Sportswagen TDI are all 2009 Volkswagen models that can be run on biofuel.
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The Mercedes-Benz R320, Dodge Sprinter Van, and BMW 335d are other vehicles with biofuel capabilities.

European creation, designed by Honda R&D Europe in Germany.

Types of biofuel
Vegetable oil is used in several old diesel engines that have indirect injection systems. This oil
is also used to create biodiesel, which when mixed with conventional diesel fuel is compatible for most diesel engines. Used vegetable oil is converted into biodiesel. Sometimes, water and particulates are separated from the used vegetable oil and then this is used as a fuel.

Biodiesel is a famous biofuel in Europe. Its composition is just like mineral diesel. When
biodiesel is mixed with mineral diesel, the mixture can be used in any diesel engine. It is observed that in several nations, the diesel engines under warranty are converted to 100% biodiesel use. It has also been proved that most people can run their vehicles on biodiesel without any problem. A large number of vehicle manufacturers recommend the use of 15% biodiesel mixed with mineral diesel. In Europe, a 5% biodiesel blend is generally used at gas stations.

Bioalcohols are biologically produced alcohols. Common among these are ethanol and rare
among these are propanol and butanol. Biobutanol can be used directly in a gasoline engine and hence is considered a direct replacement for gasoline.

Ethanol fuel is the most commonly used biofuel in the world and particularly in Brazil.
Ethanol can be put to use in petrol engines as a substitute for gasoline. Also, it can be mixed with gasoline in any ratio. The contemporary automobile petrol engines can work on mixtures of gasoline and ethanol that have 15% bioethanol.

Biogas is created when organic material is anaerobically digested by anaerobes. During

production, there is a solid byproduct called digestate.

The combined processes of gasification, combustion and pyrolyis gives rise to Syngas
which is a biofuel. This syngas can be directly burned in internal combustion engines.

Some second generation biofuels that are being developed are Fischer-Tropsch diesel,
bio-DME, DMF, biomethanol, biohydrogen, wood diesel, mixed alcohol and biohydrogen diesel. Algae fuel is a third generation biofuel derived from algae. This is also called as oilgae

biofuels used ?
Biodiesel can, in theory, be used in all diesel engines. However, due to the parts attached to the diesel engine, some manufacturers do not approve engines running on 100% biodiesel. Volkswagen, SEAT, Audi and Skoda all approved their cars built from 1996-2004 running on 100% RME biodiesel that is biodiesel made from rapeseed on the condition that it meets specification EN14214. Generally speaking, it is recommended that you use a combination of biodiesel blended with regular diesel. Indeed at the majority of petrol stations, a 5% biodiesel mix is used. It is also worth bearing in mind that biodiesel made from waste cooking oil can freeze in the winter and so no more than a 50% blend is recommended. Between 2000 and 2005 ethanol production doubled, and biodiesel production quadrupled, so biofuels are clearly on the rise. The British Governments Renewable Transport Fuel Obligation currently requires 2.5% of fuels sold at the pump to be biofuels. This will increase to 5% by 2010, while the EU has a target of 5.75% of all transport fuels to be from biological sources, also by 2010.

Benefits of Biofuel

Cleaner fuel due to lower overall emissions of the following; o Sulphur Dioxide (SO2) elimination o Nitrogen Oxide (NOx) o Carbon Dioxide (CO2) No microbiological growth in storage tanks due to sterilizing properties within the product Increased lubricity, extending engine life Energy efficient production no by products Non toxic Biodegradable

Advantages

Cost:

Once the technology is widely available, biofuels can be significantly less expensive than gasoline and other fossil fuels, particularly as worldwide demand for oil increases, therefore increasing oil and gasoline prices to unheard of levels.

Source Material:

Whereas oil is a limited resource that comes from specific materials, biofuels can be manufactured from a wide range of materials including crop waste, manure, and other byproducts, making it a efficient step in recycling.

Renewability:

It takes thousands of years for fossil fuels to be produced, but biofuels are much more easily renewable as new crops are grown and waste material is collected. Security:

By reducing dependence on foreign fuel sources, countries can protect the integrity of their energy resources and make them safe from outside influences. Economic Stimulation:

Because biofuels are produced locally, biofuel manufacturing plants can employ hundreds or thousands of workers, creating new jobs in rural areas. Biofuel production will also increase the demand for suitable biofuel crops, providing economic stimulation to the agriculture industry.

Biodegradability:

Biofuels are easily biodegradable and far safer to handle than traditional fuels, making spills less hazardous and much easier and less expensive to clean up. \ Lower Carbon Emissions:

When biofuels are burned, they produce significantly less carbon output and fewer toxins, making them a safer alternative to preserve atmospheric quality and lower air pollution.

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Disadvantages

Energy Output:

Biofuels have a lower energy output than traditional fuels and therefore require greater quantities to be consumed in order to produce the same energy level. Biofuels aren't all good.

Production Carbon Emissions:

Several studies have been conducted to analyze the carbon footprint of biofuels, and while they may be cleaner to burn, there are strong indications that the process to produce the fuel including the machinery necessary to cultivate the crops and the plants to produce the fuel has hefty carbon emissions.

High Cost:

To refine biofuels to more efficient energy outputs and to build the necessary manufacturing plants to increase biofuel quantities will require a high initial investment. Food Prices:

As demand for food crops such as corn grows for biofuel production, it could also raise prices for necessary staple food crops. Water Use:

Massive quantities of water are required for proper irrigation of biofuel crops as well as to manufacture the fuel, which could strain local and regional water resources. Availability:

Biofuels are not widely available for consumer purchase and most vehicles are not equipped to run on biofuel products. Limited availability reduces the desirability of biofuels as alternative energy sources.

Smell:

Biofuel production produces heavy smells depending on the type of materials used, and those smells are generally undesirable near large communities. While manufacturing plants

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can be isolated, this will add to the carbon emissions necessary to bring fuel to population centers.

Biodiversity : A fear among environmentalists is that by adapting more land to produce crops for biofuels, more habitats will be lost for animals and wild plants.

The food V fuel debate : Another concern is that if biofuels become lucrative for farmers, they may grow crops for biofuel production instead of food production. Less food production will increase prices and cause a rise in inflation.

Carbon emissions : Most LCA investigations show that the burning of biofuels substantially reduces greenhouse gas emissions when compared to petroleum and diesel.

Non-sustainable biofuel production : Many first generation biofuels are not sustainable. It is necessary to create sustainable biofuel production that does not effect food production, and that doesnt cause environmental problems.

Economic benefits
Foreign Direct Investment Large scale long-term rural job creation Increased household income and poverty reduction Domestic production of sustainable biofuels Cost savings in fuel supply from import substitution at a time of widespread uncertainty about the future costs and reserves of crude oil Savings in critical foreign exchange Increase in the local tax base Regeneration and rehabilitation of the wasteland environment Clean up of Indian industry and transport sectors by increased supply of biofuels Contribution to the reduction of global green house gases

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The Future of Biofuels

Biofuels are a reliable alternative energy resource but more development and research is necessary to overcome the advantages and disadvantages of biofuels and make them suitable for widespread consumer use. When the technology is available, many of the disadvantages will be minimized and consumers can begin to enjoy all the benefits of this sustainable, renewable energy source.

Indian_Scenario
There has been greater awareness on biodiesel in India in the recent times and significant activities have picked up for its production especially with a view to boost the rural economy. The activities launched in the field of bio-diesel in India and the agencies involved therein include: Development of high quality jatropha through tissue culture by DBT, Aditya, Sheel Biotech etc. Plantation by National Oilseed and Vegetable Oil Development Board (NOVOD), NAEB, NGOs & private companies Pilot plants for biodiesel production by IITs, IIP-Dehradun, R&D Centre/IOCL, PAULudhiana, IISc, Indian Railways, IICT, CSMCRI. Trans-esterification plants with capacities : 300 MT/day & 30 MT/day in AP, 5.00 MT/day in Sivakasi, Oil India planning 24 MT/day capacity plants in various states. Trial runs by Indian Railways, Mahindra & Mahindra (Tractors), Haryana Roadways/IOCL, BEST Buses/HPCL, Daimler Chrysler cars etc. Supply of biodiesel by Lubrizol India Pvt. Ltd. & Gujarat Oleochem Indian Oil has worked on establishing the production parameters of transesterified jatropha oil and use of biodiesel in its R&D Centre at Faridabad. They have been using a laboratory scale plant of 100 Kgs./day capacity fo r transesterification; designing of larger capacity plants is underway. Production of bio-diesel in smaller plants of capacity e.g. 5-20 Kgs./day may also be started in villages.

Biofuel in India

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Biofuels are fuels derived from biomass - recently living organisms or their metabolic byproducts. Agricultural products specifically grown for use as biofuels include corn, sunflower and soybeans, primarily in the United States, as well as flaxseed and rapeseed, primarily in Europe. In the developing world, the physic nut (jatropha curcas) and the Indian beech (pongamia pinnata) are favoured for their drought resistance and ability to grow in marginal soils, thereby reducing demand for arable soils and water required for food production. Biofuels are used as a direct replacement for energy and industrial fuels such as HFO, or can be easily processed into biodiesel, an alternative to petroleum-based diesel fuel.Biofuel development in India centers mainly around the cultivation and processing of Jatropha plant seeds which are very rich in oil (40%). The drivers for this are historic, functional, economic, environmental, moral and political. Jatropha oil has been used in India for several decades as biodiesel to height to the diesel fuel requirements of remote rural and forest communities; jatropha oil can be used directly after extraction (i.e. without refining) in diesel generators and engines. Jatropha has the potential to provide economic benefits at the local level since under suitable management it has the potential to grow in dry marginal non-agricultural lands, thereby allowing villagers and farmers to leverage non-farm land for income generation. As well, increased Jatropha oil production delivers economic benefits to India on the macroeconomic or national level as it reduces the nation's fossil fuel import bill for diesel production (the main transportation fuel used in the country). Minimizing the expenditure of India's foreign-currency reserves for fuel allowing India to increase its growing foreign currency reserves (which can be better spent on capital expenditures for industrial inputs and production). And since Jatropha oil is carbon-neutral, large-scale production will improve the country's carbon emissions profile. Finally, since no food producing farmland is required for producing this biofuel (unlike corn or sugar cane ethanol, or palm oil diesel), it is considered the most politically and morally acceptable choice among India's current biofuel options . it has no known negative impact on the production of the massive amounts grains and other vital agriculture goods India produces to meet the food requirements of its massive population (circa 1.1 Billion people as of 2008).

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Other biofuels which displace food crops from viable agricultural land such as corn ethanol or palm biodiesel have caused serious price increases for basic food grains and edible oils in other countries. Seeds from the Jatropha curcas plant are used for the production of bio-fuel, a crucial part of India's plan to attain energy sustainability. India's total biodiesel requirement is projected to grow to 3.6 Million Metric Tons in 2011-12, with the positive performance of the domestic automobile industry.Analysis from Frost & Sullivan, Strategic Analysis of the Indian Biofuels Industry, reveals that the market is an emerging one and has a long way to go before it catches up with global competitors. The Government is currently implementing an ethanol-blending program and considering initiatives in the form of mandates for biodiesel. Due to these strategies, the rising population, and the growing energy demand from the transport sector, biofuels can be assured of a significant market in India. On 12 September 2008, the Indian Government announced its 'National Biofuel Policy'. It aims to meet 20% of India's diesel demand with fuel derived from plants. That will mean setting aside 140,000 square kilometres of land. Presently fuel yielding plants cover less than 5,000 square kilometres. The former President of India, Dr. Abdul Kalam, is one of the strong advocaters of jatropha cultivation for production of bio-diesel.In his recent speech, the Former President said that out of the 600,000 km of wasteland that is available in India over 300,000 km are suitable for Jatropha cultivation. Once this plant is grown the plant has a useful lifespan of several decades. During its life, Jatropha requires very little water when compared to other cash crops.

Implementation
Recently, the State Bank of India provided a boost to the cultivation of Jatropha in India by signing a Memorandum of Understanding with D1 Mohan, a joint venture of D1 Oils plc, to give loans to the tune of 1.3 billion rupees to local farmers in India. Farmers will also be able to pay back the loan with the money that D1 Mohan pays for the Jatropha seeds. Indian Railways Andhra Pradesh Chhattisgarh Karnataka Tamil Nadu

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Rajasthan Jatropha is ideally suited for cultivation in Rajasthan as it needs very little water which is scarce in Rajasthan. Jatropa plantations have been undertaken in Udaipur, Kota, Sikar, Banswara, Chittor and Churu districts. In the Udaipur district, Jatropha curcas is planted in agroforestry formats with food or cash crops on marginal lands (in India often called waste lands). As its leaves are toxic and therefore non-palatable to livestock, they remain intact in their sapling stage, unlike most other tree saplings. Maharashtra Ahmednagar Eastern India D1 Williamson Magor Bio Fuel Limited is a joint venture company between D1 Oils plc, UK and Williamson Magor group. This biodiesel initiative was incorporated in July 2006. Advocating the creation of energy from renewable resources, the company promotes Jatropha Plantations on the wasteland possessed by the farmers in the North Eastern States, Orissa and Jharkhand. The Company has a comprehensive network to manufacture bio-diesel from the oilseeds harvested by the farmers.

Commercial

Production

of

Biodiesel

Indian

Efforts

In India, approximate 85% of the operating cost of biodiesel plant is the cost to acquire feedstock. Securing own feedstock to insure supply at a fair price and sourcing it locally to avoid long haulage for delivery of seeds to biodiesel plant are critical factors in controlling profitability. For an optimal capacity of 10,000 TPA of biodiesel, the capital cost for oil extraction & transesterification would be Rs.20,000/T capacity. The cost of oil extraction has been estimated as Rs.2360/MT and cost of transesterification at Rs.6670/MT with by-products produced @ 2.23 MT seed cake per ton of biodiesel and 95 Kgs. of glycerol per ton of biodiesel. The return on investment (ROI) has been arrived at 15% pretax on the capital cost. The following small units are already in commercial production :

1. Aatmiya Biofuels Pvt. Ltd., Por-Vadodara, Gujarat had set-up biodiesel plant with a commercial production capacity of 1000 liters/day from jatropha. 2. Gujarat Oelo Chem Ltd., Panoli based firm started producing biodiesel from vegetable based
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feedstock

in

March

2005.

The agricultural land for the project has been identified. TERI would also install the necessary equipment for seed crushing, oil extraction and processing to produce 9 million litres of biodiesel per annum. A full environmental and social assessment of all elements of the supply chain and life cycle analysis of green house gas emissions would also be completed as part of the project. The commercial pilot plant established by Biodiesel Technologies, Kolkata produces 450 lts/day of biodiesel. Diamond Energy Resources Pvt. Ltd. has been working on jatropha plantation and further development since last fifteen years. The company targets to set up three transesterification plants, each of 100 TPD capacity. They are in touch with Lurgi, Germany and two other companies from USA for technology support for setting up the plant in West Bengal. The company has taken up large-scale cultivation of jatropha in four districts of South Bengal West Midnapore, Bankura, Birbhum and Purulia covering over 10,000 ha of arid lands. The Southern Online Biotechnologies Ltd., is setting up 30 TPD or 90,000 TPA biodiesel plant estimated at Rs.150 million at Choutuppal in AP with technology support from Lurgi. It would require seeds of 100 TPD or 32,000 TPA. As the current availability of seeds in the state is around 4,000 tons, it plans to use other raw materials like acid oils, distilled fatty acids, animal fatty acids and non-edible vegetable oils like neem, rice bran etc.

MINISTRY OF RESOLUTION

PETROLEUM

AND

NATURAL

GAS

With a view to give boost to agriculture sector and reduce environmental pollution, Government of India have been examining for quite some time supply of ethanol-doped-petrol in the country. In order to ascertain financial and operational aspects of blending 5% ethanol with petrol as allowed in the specifications of Bureau of Indian Standards for petrol. Government had launched three pilot projects; two in Maharashtra and one in Uttar Pradesh during April and June 2001 and these pilot projects have been supplying 5% ethanol-doped-petrol only to the retail outlets under their respective supply areas since than. Apart from the aforesaid field through pilot projects, R & D studies also were undertaken simultaneously. Both pilot projects and R & D studies have been successful and established blending of ethanol up to 5% with petrol and usage of ethanol-doped-petrol in vehicles. Discussions were held with concerned agencies including the Governments of major sugar producing States. While the Society for Indian Automobile Manufacturers (SIAM) has confirmed the acceptance for use of 5% ethanol-doped-petrol in vehicles. State Governments of major sugar producing States and the representatives of sugar/distillery industries have confirmed availability / capacity to produce ethanol. Government have set up an Expert Group headed by the Executive Director of the Centre for High Technology for examining various options of blending ethanol with petrol including use of ETBE in refineries. Considering the

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logistical and financial advantages, this Group has recommended blending of ethanol with petrol at supply locations (terminals / depots) of oil companies. In view of the above, Government have now resolved that with effect from 1-1-2003, 5% ethanol-doped-petrol will be supplied in the following nine States and Four contiguous Union Territories : States & Union Territories 1. Andhra Pradesh 1. Damman and Diu 2. Goa 2. Dadra and Nagar Haveli 3. Gujrat 3. Chandigarh 4. Haryana 4. Pondicherry 5. Karnataka 6. Maharashtra 7. Punjab 8. Tamilnadu 9. Uttar Pradesh

Indian Biofuel Industry

The tag of developing country and a huge energy demand (India stands at fifth position in energy consumption in the world) has forced India to depend on other countries for oil. This has increased the risk exposure of the country to the high price of the crude oil in the international market. With the increasing oil prices and being a part of the clean environment policies, India commenced on its Biofuels use journey in 2003. Basically, the Indian Biofuels sector is driven by ethanol and in case of biodiesel, the phase one consisting of pilot projects has almost been completed and the commercial production is expected to start in 2007 onwards. Key Findings - Ethanol production of India is ranked 4th largest in the world. However, the production capacity of India was much more than its actual production. With uses in different segments, ethanol demand is increasing in India. - The biodiesel production is in its initial phase and the commercial production is still waiting for a start. The densities of raw materials for biodiesel production in India are high but it is lacking in production and plantation of raw material (Jatropha) for biodiesel production. - Government primary objectives for Biofuels industry are environmental factors along with diversity & security of energy supply of energy. This is working as the primary driving force for the industry growth. - Expanded Biofuels production has the potential to create new opportunities for sustaining the rural development in a market-orientated common agricultural sector.

Best Management Practices for Biofuels

The Oregon Environmental Council offers these best management practices for producing biofuels feedstocks and refining biofuels. Its essential for the sustainability of the biofuels industry and the health of the planet that producers employ these practices wherever possible.

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The Oregon Environmental Council offers these best management practices for producing biofuels feedstocks and refining biofuels. Its essential for the sustainability of the biofuels industry and the health of the planet that producers employ these practices wherever possible. Oregon companies SeQuential Pacific Biodiesel and HM3 Ethanol have pledged to follow best management practices for biorefinery operations and to procure feedstocks that have been produced sustainably. Madison Farms & K.S. Madison, Inc., a producer of oilseed for biodiesel production out of Echo, Ore., has pledged to follow best practices for biofuel feedstock producers.

Swot analysis
Strengths
a) The production of biofuels contributes to secure energy supply. b) The use of biofuels can reduce GHG emissions. c) Feedstock production for energy purposes creates jobs especially in rural areas. d) Feedstock production for biofuels is a useful measure for using setaside land. e) The production of co-products provides additional income. f) Biofuels are not or only little toxic.

Weaknesses
a) Feedstock production for biofuels is land consuming. b) The use of biofuels leads to a diversification of transport fuels which arises the need of different technologies (e.g. engines). c) Fuel prices largely depend on the sale of co-products. d) Feedstock production largely depends on many vagaries of nature, including extreme weather conditions and pest attacks.

Opportunities
a) Biofuels have the opportunity to replace a large percentage of fossil fuels. b) Biofuels have the opportunity to decrease dependency on crude oil.

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c) Biofuels have the opportunity to decrease imports of crude oil. d) Biofuels have the opportunity to reduce air pollution and GHG emissions. e) Since biofuels are of rising interest, there exist many research initiatives.

Threats
a) The biofuel market is a relatively new market. b) Of all transport fuels, biofuels have a market share of barely 1 % (2005) in the EU4. c) Biofuel production is limited due to land availability for feedstock production. d) Feedstock production of biofuels is in competition with food production.

Conclusion
Production of bio-fuel from plant materials is a major step toward harnessing one of the world's most-prevalent, yet least-utilized renewable energy resources. A breakthrough process for converting biomass into biodiesel promises an attractive alternative to go green. Ethanol, the most popular and commercial biofuel, has long been refined out of plant matter, but it requires the costly, energy-intensive step of distilling every molecule of water out of the solution. In contrast, the biodiesel process is based on aqueous phase reactions, which does not to go through the expensive distillation phase. As the process is exothermic, there is no need for distillation which need a lot of energy. The resulting biodiesel has almost the same chemical structure as traditional diesel and burns the same way in diesel engines. Several countries in the world have active biodiesel programmes. They also have provided legislative support and have drawn up national polices on biodiesel development. Germany & France are the major producers of biodiesel in the world; their conventional diesel contains between 2-5% biodiesel and that will soon apply to the whole of Europe. While soya based biodiesel is being produced in USA, rapeseed is the source for biodiesel in Germany. Germany has more than 1,500 biodiesel filling stations. Sunflower based biodiesel has made good success in France & UK. India, with its huge waste/non-fertile lands, has taken a well noted lead in the cultivation. The industries need to focus on the commercial production of biodiesel. Indias biodiesel programme has been based on jatropha seeds only but for reduced operating cost a multiple feedstock-based strategy is needed. Since the knowledge-base/expertise for jatropha has been inadequate in India,

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there is an ardent need for setting up specialized extension service centers for its cultivation and propagation. Finally biofuel is more perfect then normal fuel .every company required transportation so company needed fuel , bio fuel is the better option of fuel. It is also feature fuel . Many company use it to reduce transmit ion cost. It is eco-friendly product.

Bibliography
Lucas Reijnders, Mark A. J. Huijbregts Biofuels for Road Transport: A Seed to Wheel Perspective Green Energy and Technology, illustrated edition, Published by Springer. David M. Mousdale Biofuels: biotechnology, chemistry, and sustainable development ", illustrated Edition, Published by CRC Press Rattan Lal, B. A. Stewart Carbon Management, Biofuels, and Soil Quality Advances in Soil Science illustrated edition, published by- CRC Press.

webliography
http://corelims.com/biofuellims.htm http://www.investorideas.com/news/renewable-energy/2253.asp http://economictimes.indiatimes.com/news/international-business/Lufthansa-to-use-biofuel-onflights-by-2012-CEO/articleshow/5910601.cms http://www.biofuelsdigest.com/ http://www.alternative-energy-news.info/technology/biofuels/
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