Post on 03-Jun-2018
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Agenda
Introductionto Bio-fuels
BiodieselManufacturingbiodiesel using
Jatropha Oil
SuggestedJatropha
Based ValueChain
Farmers Viewon JatrophaPlantation
Financials
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Bio-fuel- A Ray of Hope
Bio-Fuel
Oil provides energy to 95% transportation and continues to
grow.
Biofuels are renewable liquid fuels coming from biological
raw material and have been proved to be good substitutes
for oil in the transportation sector. Types of Bio-Fuel: Ethanol and Biodiesel
Solution to many problems: environmental problems,
energy security, reducing imports, rural employment and
improving agricultural economy
Ethanol
Raw material used for producing ethanol varies from sugar, cereals,
sugar beet to molasses in India
Brazil: ethanol as 100 % fuel in about 20 per cent of vehicles, 25% blend
with gasoline in the rest of the vehicles
USA and Australia use 10 % ethanol-gasoline blends whereas in Sweden
5% blend is used
India: Use of 5% ethanol- gasoline blend is already approved by BIS and
is in progressive state of implementation in the country.
Three classes of vegetative sources (raw materials) can be used:
starch as grain, corn and tubers like cassava
sugar plants (sugar beet or sugar cane)
cellulose plants (general tree and biomass)
Biodiesel
Biodiesel is made from virgin or used vegeta
edible) and animal fats through trans-esterifica
Use of biodiesel results in substantial reductio
carbon monoxide and particulate matters
It has almost no sulphur, no aromatics and ha
which helps it to burn fully. Its higher cet
combustion
Raw materials: Sunflower and rapeseed in Eu
oil in Thailand, Frying oil and Animal fats in Ire
India: It is proposed to use non-edible oil for m
Projected demand for petrol & diesel, and biofuel
Year
Petrol
demand
Mt
Ethanol blending requirement
(in metric tons) Diesel
demand
Mt
Bio
@ 5 per
cent
@ 10 per
cent
@ 20 per
cent@
ce
2006-
200710.07 0.5 1.01 2.01 52.32 2
2011-
201212.85 0.64 1.29 2.57 66.91 3
2016-
201716.4 0.82 1.64 3.28 83.58 4
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Biodiesel: Advantages and Comparison with Diesel
Usage
Can be used in any existing, unmodified diesel engine
Can be used alone or mixed in any ratio with mineral oil diesel fuel. Thepreferred ratio if mixture ranges between 5 and 20% (B5 - B20)
Extends the live of diesel engines
Energy
Independence
With the rising costs of oil, for a majority of countries depending on the
import of oil, it has now become a matter of wheninstead of if
Reducing TradeDeficit
Reducing the oil imports will help us reduce our imports cost. Thismoney can be used towards other important initiatives like health,education and other services in our country
Economic
Growth
At the community level, farmers that produce dedicated energy cropscan grow their incomes and grow their own supply of affordable andreliable energy
At the national level, biofuels will generate new industries, new
technologies, new jobs and new markets
Cleaner Air
Produce fewer emissions of carbon monoxide, particulates, and toxicchemicals that cause smog, aggravate respiratory and heart disease
Produces 80% less carbon dioxide and 100% less sulphur dioxideemissions. It provides a 90% reduction in cancer risks
Less Global
Warming
Biofuels contain carbon that was taken out of the atmosphere by plantsand trees as they grew. Studies show that biodiesel reduces CO2emissions to a considerable extent and in some cases all most nearly tozero
Biodiesel is also biodegradable
Fuel Property
Fuel Standard
Fuel composition
Lower Heating Value (Btu/galKin. Viscosity, @ 40 8C
Specific Gravity kg/l @ 60 8F
Density, lb/gal @ 15 8C
Water, ppm by wt.
Carbon (wt.%)
Hydrogen (wt.%)
Oxygen, by dif. wt.%
Sulfur (wt.%)
Boiling Point (8C)
Flash Point (8C)
Cloud Point (8C)
Pour Point (8C)
Cetane Number
Stoichiometric Air/Fuel Ratio
(w/w)
BOCLE Scuff (g)
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Biodiesel: Sources
Vegetable Oils Soybeans, Rapeseed, Ground Nut, Sunflower, Coconut, Cotton
Seed, Sorghum, Barley, Rice, Oat, etc
Non-edible Oil Almond, Andiroba, Camelina, Cumaro, Jojoba Oil, Jatropha
curcas, Mahua, Karanja, Castor, Palm, Rubber, Sesame, etc.
Animal Fats Lard, Tallow, Poultry Fat, Fish Oil
Other Sources Bacteria, Algae, Fungi, Micro Algae, Tarpenes, Latexes,
Cooking Oil (Yellow Grease) etc
Percentage Oil in Non
Species
Castor
Jatropha
Karanja
Mahua
Linseed
C
Castor seed is the
has a wide variety
between 40% an
triglycerides, main
Castor is indigen
Mediterranean Ba
but is widespread t
In arid and semi-ar
season to first harv
Karanja
Pongamia pinnata or karanja is a native of the
Western Ghats and is chiefly found along the
banks of streams and rivers or near the sea on
beaches and tidal forests
Grows in dry places, hardy tree that mines
water for its needs from 10 metre depths
without competing with other crops
From year-5, the plant is expected to give
economic yields and it may continue through
to its life of 100 years
Jatropha
Jatropha curcas plant shows promise for use
as an oil crop for biodiesel
It is non-edibleand can grow in areas of low
rainfall (250 mm per year minimum, 900-
1,200 mm optimal) and is drought resistant
Valued for crop protection, prevents
wind/water erosion, is not browsed by
animals, will reach maximum productivity by
year three, and has a 50 year life-span
*Reasons for choosing Jatropha
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Biodiesel: Manufacturing using Jatropha OilIn India, there is a presence of large junk of degraded forest land
and un-utilised public land, field boundaries and fallow lands of
farmers where non-edible oil-seeds can be grown.
Of the variety of non-edible oil producing species, based on
extensive scientific study, Jatropha curcas has been found to be very
suitable for biodiesel production
Advantages of Jatropha
The oil yield per hectare for Jatropha is among the highest for tree-borne oil seeds. The about 0.4 tons per hectare per year to over 12 t/ha. There are reports of oil yields as high aTypically, the seed production would be 3.75 t/ha, with an oil yield of 30-35 per cent, givin
t/ha It can be grown in areas of low rainfall (200 mm per year), on low fertility, marginal, degra
Canals, roads railway tracks, borders of farmersfields as a boundary fence/hedge in arid are appropriate for the crop
Jatropha is easily established in nurseries, grows relatively quickly and is hardy
Jatropha seeds are easy to collect as they are ready to be plucked before the rainy season atall
Jatropha is not browsed by animals
Being rich in nitrogen, the seed cake is an excellent source of plant nutrients
Land Type
Area
(Mha)
Under stocked forests 31.
Protective hedge around agricultural fields 142
Agro- forestry 11.4
Fallow Lands 24.
Land related programmes of Ministry of RuralDevelopment
Public lands -railway tracks, roads, canals, etc
TOTAL 197.
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Biodiesel: Suggested Jatropha Based Value Chain
Farming Models
Estate Farming In this mode, Mahindra can cultivate jatropha in
either their own land or community land leased-infrom the local panchayats. The company employsthe local villagers to cultivate the crop and the rightto harvest rests with either the company or isshared with the panchayats
Contract Farming
In this mode, along with buy-back arrangement,Mahindra can provide inputs, technical guidanceand other extension services to the farmers duringthe initial years of establishment
The contracts can be reached either at a pre-decided price for the seeds or just with theunderstanding that the company will purchase theseeds at the prevailing market price
Step 1: Cultivation of JatrophaNursery Biofuel Board
Seedlings
Beneficiaries
Plantation
Owned
wasteland
Community
wasteland
Forest
Land
Harvesting and hulling of fruits
By-products: Leaves, latex, wood
Home Consumption
Intermediaries
Private Traders
Seeds
DRDO
Railways
Transport companies
Oil marketing Companies
Local use in fuel etc.
Cultivation Processing
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Transesterification Process Requirements
The most economical process for biodiesel manufacture is transesterification of
Jatropha oil by an alcohol, usually methanol.
Common catalyst is an alkali such as potassium hydroxide
Methanol is preferred over ethanol because the costlier anhydrous ethanol is
required instead of the readily available 95 per cent ethanol
Step 3: Seed Processing and Biodiesel Production
Biodiesel: Suggested Jatropha Based Value Chain
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Step 4: Biodiesel Distribution
As of now, the consumers of biodiesel in the countryinclude Defence Research and DevelopmentOrganization (DRDO), some private companies, etc.
Public sector oil marketing coHindustan Petroleum (HP), Bharand ONGC are in the proceextensive network of biofuconnecting various processingoutlets across the country
Several state transport corporations like Andhra
Pradesh State Road Transport Corporation (APSRTC),Navi Mumbai Municipal Transport Corporation(NMMTC), Uttar Pradesh State Road TransportCorporation (UPSRTC), Calcutta Tramways CompanyLtd, etc. have also started blending biodiesel with HSDin their fleet of buses
The Indian Railways, have stablend of biodiesel in narrow gaubody IndianRailways Organizat(IROAF) instituted under thebuilding networks with potentia
Biodiesel: Suggested Jatropha Based Value Chain
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Farmers view on Jatropha Plantation
Expectations on future economic yieldand incomes from Jatropha plantations
Future incomepossibilities
The plantations have survived withoutmaintenance and are even yielding insome cases
Survives withoutmaintenance
Positive effects on other plants whenintercropping
Effect on otherplants
Demonstration of the performance ofJatropha
Demonstration
Drivers for Jatropha Plantation Barriers for Jatropha Pl
No or insufficieplantation, Proat a reasonable
Economic
Plantations affediseases, No or
Ecological
Insufficient knomaintenance anLack of interestcultivation
Knowledge
Promises madeactors in the inihave not been
Implementation
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Crop Care: Mahindra can provide insecticides, fungicideplant growth promoters to contribute to better harvests
Fresh produce services: Mahindra can effectively farming & engage with the farmers throughodisseminate information on growing techniques
Seed Distribution: Mahindra can help the seeds/saplings of jatropha plant at a competitiv
Financial service: Mahindra can provide special fipurchasing agri-vehicles at less interest rates and areas. It can also provide finance to farmers forcultivating jatropha
Insurance: It can increase the sales of insurance in the rmore aware of the benefits of the insurance plans & their
How Mahindra can Help the Farmers
Farmers
Mahindra-ShubhLabh
Services
Mahindra-Farm
EquipmentDivision
Mahindra-FinancialServices
Mahindra-Insurance &
RuralHousingFinance
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COST OF PRODUCTION OF BIOD
INPUTS QU
Jatropha seeds 10
Unskilled labor 6 h
Managerial labor 1 h
Administrative labor 4 h
Chemicals Used
Methanol 60
sodium hydroxide 21
Electricity 25
Interest on Fixed capital at
Depreciation on machinery at
Depreciation on other assets at
Freight and other incidentals
Total cost (A)
Revenue from byproducts
Glycerol 46
Oil cake 67
Total Revenue(B)
Net cost incurred (A)-(B)
Recovery of biodiesel/tonne of jatropha seeds 27
Net cost/Kg of biodiesel
Initial outlay
Estimated cost of setting up 10 tonne per
day plant8-10crore
This includes installation and commissioning of:
Trans esterification plant
esterification plant
Glycerin refining plant
Laboratory
Crude oil extraction
crude oil refining
Waste treatment plant
Financials of setting up a Biodiesel Production Plant
Govt. of India has already declared Biodiesel
Purchase Policy wherein any biodiesel producer can
supply biodiesel @ Rs.34/- per litre to public sector
petroleum companies.
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Conclusion
Producing biodiesel form non-edible oil is the solution to many problems: environmental problems, energy secuimports and improving agricultural economy
Investment in biodiesel is an investment in local communities. Biodiesel creates green-collar jobs.
A socially responsible Mahindra can enter the business of biodiesel production to make green fuel available for thindustry in India
In this holistic approach, Mahindra can include farmers to setup a value chain around biodiesel production
Mahindra can also enhance its customer base by providing its services to the newly empowered farmers of jatropha p
This initiative will enable both the rural population and Mahindra to Rise
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Thank You