Biodiesel: Technology and Business Opportunities

Biodiesel: Technology & Business Opportunities – An Insight S Biswas, N Kaushik & G Srikanth Technology Information, Forecasting and Assessment Council (TIFAC) Department of Science & Technology, New Delhi – 110 016 Tel: [phone], Fax: [phone], e-mail : [e-mail] The concept of bio fuel dates back to 1885 when Dr. Rudolf Diesel built the first diesel engine with the full intention of running it on vegetative source. In 1912 he observed, " … the use of vegetable oils for engine fuels may seem insignificant today. But such oils may in the course of time become as important as petroleum and the coal tar products of present time." In 1970, scientists discovered that the viscosity of vegetable oils could be reduced by a simple chemical process and that it could perform as diesel fuel in modern engine. Since then the technical developments have come a long way and the plant oil today has been highly established as bio fuel, equivalent to diesel. Recent environmental (e.g. Kyoto Protocol) and economic concerns have prompted resurgence in the use of biodiesel throughout the world. In 1991, the European Community proposed a 90% tax reduction for the use of bio fuels, including biodiesel. Today 21 countries worldwide produce biodiesel. India is one of the largest petroleum consuming and importing countries. India imports about 70 % of its petroleum demands. The current yearly consumption of diesel oil in India is approximately 40 million tones constituting about 40% of the total petro-product consumption. 2.0 Why Biodiesel? Biodiesel, derived from the oils and fats of plants like sunflower, rape seeds, Canola or Jatropha Curcas, can be used as a substitute or an additive to diesel. As an alternative fuel biodiesel can provide power similar to conventional diesel fuel and thus can be used in diesel engines. Biodiesel is a renewable liquid fuel that can be produced locally thus helping reduce the country’s dependence on imported crude. 2.1 The advantages of