The Hindu Business Line : IndianOil forms group for implementing biofuel projects

Indian Oil Corporation Ltd has constituted an internal group on bio-fuels to look at commercialisation of various projects on bio-diesel. "The group is currently in talks with five States to implement the project on a large scale," Mr B.M. Bansal, Director (Planning and Business Development), IndianOil, said.

Speaking to Business Line, he said, the five States where the project is underway are Chhattisgarh, Andhra Pradesh, Rajasthan, Uttaranchal, and Tamil Nadu. Subsequently, the project is likely to be extended to Orissa and Maharashtra. "Making the project commercially viable is the task before the group," he said.

IndianOil has entered into projects for promoting five per cent and 10 per cent bio-diesel blend with Indian Railways, Escorts Tractors, Tata Motors, and Haryana Roadways. Areas identified by IndianOil for giving the programme further boost includes need for development of high yielding variety of Jatropha, systematic study on plantation and seed yield, exploring the cost effectiveness of production technologies, development of antioxidants or additives to improve shelf life of bio-diesel blend, study of compatibility of bio-diesel in different engines, and emission analysis of bio-diesel blends in different vehicles.

Last October the Petroleum Ministry had announced a bio-diesel purchase policy, which came into effect from January 1, 2006. The policy prescribed for the State-owned oil marketing companies to purchase the product of prescribed BIS specification from registered authorised suppliers through 20 purchase centres at a uniform delivered price of Rs 25 per litre (inclusive of all taxes).

The purchase price was to be reviewed every six months considering the market conditions. Accordingly, the price was revised to Rs 26.50 per litre till December 2006. However, so far, no bio diesel has been offered for purchase under the policy, according to sources in the Ministry.

According to industry sources, "this is because at the moment seeds are being given for further plantation. Once the crushing starts then we would see supplies at the purchase centres."

Vegetable oil produced from different sources all over the world such as rapeseed oil (Europe), palm oil (Malaysia), sunflower oil (Italy and Southern France), soyabean oil (US and Brazil), linseed and olive oil (Spain), cottonseed oil (Greece), and jatropha and karanjia oil (India) has been used as a fuel in diesel engines.

IndianOil's research and development centre has successfully optimised the process for production of bio-diesel. The process has been scaled-up in a pilot plant at R&D centre and number of 60 kg batches of bio-diesel have been produced utilising various vegetable oils. The technology for production of bio-diesel through trans-esterification of non-edible oil with alcohol has been licensed for commercial production of bio-diesel.

More Stories on : Non-conventional Energy | Petroleum

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page