26 June, 2007: Biodiesel is in. IndianOil Corporation (IOC) has already started measures to go in from commercial production of bio-diesel, with the state-owned refiner-marketer seeking 30,000 hectares of land from the Madhya Pradesh government for its jatropha plantation.

An IOC official said that the company was keen on its jatropha plantation and is awaiting MP government’s response in this regard. Going green seems to be the in thing - not to mention where the big bucks are - and the jatropha seed has been identified as the main source of making biodiesel. IndianOil Corp is in fact in discussions with other states such as Chhattisgarh and Rajasthan for land to start plantations.

Biodiesel is made by blending oil extracted from seeds like jatropha with diesel refined from crude oil. Jatropha is seen as a plant that has all in it to provide India with a socially and ecologically sound option for increased fuel consumption. The positive aspects about the plant are that it can grow in wastelands; yields four times as much fuel per hectare as soybean; yields ten times as much fuel per hectare as corn; a single hectare can produce 1,892 litres of fuel and converting the plant oil to clean fuel requires only one step.

The IndianOil Corporation estimates that India would need an annual demand of 2 million tonnes of biodiesel, with a 5 per cent blending ratio. This figure can even go up to 10 per cent without making any modification in the engine, indicating an annual consumption potential of four million tonnes.

IOC’s efforts at promoting biodiesel come at a time when there is an urgent need for increasing energy security. Related benefits of biodiesel and other eco-friendly fuels are protecting the environment, creating jobs for rural folk and develop wastelands. The move towards jatropha plantation by IOC can be seen as a welcome step in this direction.

Meanwhile, reports said that IndianOil has already completed field trials with the bio fuel. IOC’s trial with Haryana Roadways showed a 10-15 per cent reduction in emission from the 40-odd buses that used bio-diesel.

With the bio-diesel fever catching up, Tata Motors and Indian Railways have also conducted trials running locos hauling high-speed Shatabdi and Jan Shatabdi trains.

However, there are a couple of hitches too. The government’s biodiesel plan may come unstuck due to the government's policy on procurement price. The government has set a procurement price of Rs 26.50 for each litre of biodiesel, whereas each litre made out of imported crude palm oil costs Rs 35-40. Besides, the jatropha plants allow oil extraction from seeds only after three years.

It has been reported that the IOC is trying to use this time to put in place an integrated plan for the entire value chain of biodiesel — from plantation to blending and marketing. It now remains to be seen as to when the country is really ready for the green fuel that would be a boon in today’s times.

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