by Syamala Ariyanchira

The economy is booming! The job scene has never been better! However, behind the scenes, India is still struggling to meet its ever rising energy demands! Is biofuel an answer to its energy resource problems? Does India have enough resources to support a biofuel industry? Unfortunately the answer is, not yet!!

Current crude oil consumption in India is estimated to be 130 million metric tonnes per annum and 70% of this demand is met through imports. An Indian biofuels program has already been approved by the government two years ago, with the making of a 5% bio-ethanol blend in petrol mandatory. Indian government is also in the process of finalizing its biodiesel policy and it is expected to be in place within one or two months.

Biodiesel, in principle, can be produced from any vegetable oil. Hence, it is surprising that in spite of its heavy demand for diesel fuel, which is about 44 million MT per annum, the biodiesel industry did not get as much recognition as it deserved in India. The main reason for this could be the heavy reliance of India on imports in the vegetable oil sector! Total edible oil consumption in India in 2003-04 was 10.8 million tonnes, 44% of which was imported. Hence, the biodiesel industry could have become a non-starter in this country, if not for Jatropha curcus. This shrub has been identified as an ideal feed stock which can help India to surmount many of the biodiesel supply side issues!

Jatropha is a perennial hardy shrub which can survive in arid and semi arid tropics. It grows wild in many areas of India and even thrives on infertile soil. This makes it an ideal feed stock for biodiesel, as India has more than 170 million hectares of wastelands which need revegetation. Since Jatropha is water efficient and widely adaptable, large scale Jatropha plantations required for the biodiesel industry could lead to the regeneration of these waste lands.

The yield of Jatropha oil is quite high, ranging from 1 to 5 tonnes/ ha depending upon the soil conditions and rain fall, and oil can be extracted from seeds starting from the second year. Jatropha biodiesel projects can also help in rural developments by introducing new employment opportunities in agricultural and small and medium industrial sectors. Assimilation of atmospheric carbon, to the extent of approximately 10 tonnes CO2 per hectare, can be realized by Jatropha plantations! Since India is a developing country, this can be traded under the Clean Development Mechanism (CDM). Article 12 of Kyoto protocol specifies that developing countries can benefit from CDM projects resulting in "certified emission reductions" (CERs) and that industrialized countries may use CERs to comply with their quantified emission reduction commitments. This is an additional economic advantage favoring Jatropha biodiesel projects in India.

• Daimler Chrysler, together with the University of Hohenheim, Germany, and CSIR (Council for Scientific and Industrial Research), India, has started a public-private partnership project (600,000 Euro) to test and demonstrate the feasibility of Jatropha biodiesel on internal combustion engines. Recently, a 5000 km trial run of a C-class Mercedes Benz sedan was completed, powered by Jatropha biodiesel.
• The UK based company D1 Oils Plc has signed an agreement with Mohan Breweries and Distilleries for producing biodiesel from the Jatropha plant. The company has set its targets for planting jatropha on 100,000 hectares of land in India by the end of 2005. Once mature, this plantation should yield approximately 250,000 to 300,000 tonnes of crude Jatropha oil per annum.
• Indian Railways, owned by the Government of India, which consumes about 40 million tones of diesel fuel, is planning to cultivate Jatropha along 25,000 km of its railway tracks and other waste lands. It has taken a policy decision to use biodiesel extensively for its diesel locomotives and road vehicles and has entered into a memorandum of understanding with Indian Oil Corporation (IOC) for the supply of biodiesel. IOC is buying biodiesel from Gujarat Oleo Chem Limited (GOCL) - the first company to produce biodiesel commercially in India.
• The first successful trial run of passenger trains on 5% biodiesel was conducted in 2003 with the Delhi-Amritsar Shatabdi Express with a 4000 HP engine. Southern Railways, at its Perambur Loco Works Laboratory, Chennai, has set-up a pilot plant for biodiesel production and has been using 5% biodiesel in some of its locomotives since July 2004. Trial runs using 5%, 20% and 100% biodiesel in their road vehicles have also been completed.
• Dr. M.G.R. Jatropha Biodiesel Project was launched in Chennai, in 2004. This is an ambitious programme with the objective of promoting waste land regeneration and rural development in Tamil Nadu state under contract farming basis.

The majority of ethanol produced in the country is consumed by the liquor industry and hence, many states in India were not able to implement the bio-ethanol policy. However, the biodiesel industry can have a different story altogether! The non-edible Jatropha oil has the potential to become one of the primary sources of biodiesel, globally! The rates at which new investments are being announced in this field indicate a rapid development of the biodiesel industry, triggered by higher returns expected from plantations, government encouragement, and the easy availability of waste land in India.

Considering the low man power costs and high yield of Jatropha oil, the price of Jatropha biodiesel is expected to be competitive- a crucial factor deciding the future of the biodiesel industry. The large scale Jatropha plantations promoted by the government are expected to bring down biodiesel prices below that of diesel. Once that happens, the Jatropha biodiesel industry could become a success story in India even in the absence of substantial tax exemptions from the government!