Biodiesel project

The Next Generation Sustainable Fuel

What is Bio Diesel?

The concept dates back to 1885 when Dr. Rudolf Diesel built the first diesel engine with the full intention of running it on vegetative source.

He first displayed his engine at the Paris show of 1900 and astounded everyone when he ran the patented engine on any hydrocarbon fuel available - which included gasoline and peanut oil. In 1912 he stated " … 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."

Scientists discovered that the viscosity ( thicKness) of vegetable oils could be reduced in a simple chemical process In 1970 and that it could work well as diesel fuel in modern engine.

This fuel is called Bio- Diesel.

Since than the technical developments have largely been completed. Plant oil is highly valued as Bio fuel "Diesel" and transformed into Bio Diesel in most industrialised

Please note!!!

This vegetable oil can be used as it is crushed – ie - unrefined in the engines of cars This vegetable oil can be blended with normal diesel and used in cars.

This vegetable oil can be refined and sold as pure diesel

Refined it can be exported as a clean fuel to anywhere in the world.

Bio Diesel is asubstitute for, or an additive to, diesel fuel that is derived from the oils and fats of plants, like Sunflower, Canola or Jatropha.

It is an alternative fuel that can be used in diesel engines and provides power similar to conventional diesel fuel.

Bio Diesel is arenewable domestically produced liquid fuel that can help reduce the countries dependence on foreign oil imports.

Recent environmental and economic concerns (Kyoto Protocol) have prompted resurgence in the use of biodiesel throughout the world. In 1991, the European Community, (EC) Proposed a 90% tax reduction for the use of biofuels, including biodiesel.

Today, 21 countries worldwide, produce Biodiesel.

The Advantages of Bio Diesel

Bio Diesel is the most valuable form of renewable energy that can be used directly in any existing, unmodified diesel engine. Energy Independence: Considering that oil priced at $60 per barrel has had a disproportionate impact on the poorest countries, 38 of which are net importers and 25 of Which import all of their oil; the question of trying to achieve greater energy independence one day through the development of biofuels has become one of ‘when’ rather than ‘if,’ and, now on a near daily basis, a biofuels programme is being launched somewhere in the developing world.

Smaller Trade Deficit: Rather than importing other countries’ ancient natural resources, we could be using our own living resources to power our development and enhance our economies. Instead of looking to the Mideast for oil, the world could look to the tropics for biofuels. producing more biofuels will save foreign exchange and reduce energy expenditures and allow developing countries to put more of their resources into health, education and other services for their neediest citizens.

Economic Growth: Biofuels create new markets for agricultural products and stimulate rural development because biofuels are generated from crops; they hold enormous potential for farmers. In the near future—especially for the two-thirds of the people in the developing world who derive their incomes from agriculture.

Today, many of these farmers are too small to compete in the global market, especially with the playing field tilted against them through trade distorting agricultural subsidies. They are mostly subsistence farmers who, in a good year, produce enough to feed their families, and in a bad year, grow even poorer or starve. But biofuels have enormous potential to change this situation for the better.

At the community level, farmers that produce dedicated energy crops can grow their incomes and grow their own supply of affordable and reliable energy.

At the national level, producing more biofuels will generate new industries, new technologies, new jobs and new markets.

Cleaner Air: Biofuels burn more cleanly than gasoline and diesel. Using biofuels means producing fewer emissions of carbon monoxide, particulates, and toxic chemicals that cause smog, aggravate respiratory and heart disease, and contribute to thousands of premature deaths each year.

Less Global Warming: Biofuels contain carbon that was taken out of the atmosphere by plants and trees as they grew. The Fossil fuels are adding huge amounts of stored carbon dioxide (CO2) to the atmosphere, where it traps the Earth's heat like a heavy blanket and causes the world to warm. Studies show that biodiesel reduces CO2 emissions to a considerable extent and in some cases all most nearly to zero.

In Nut-shell:

Bio Diesel is the most valuable form of renewable energy that can be used directly in any existing, unmodified diesel engine. Bio Diesel fuel and can be produced from oilseed plants such as rape seeds, sunflower, canola and or JATROPHA CURCAS.

Bio Diesel is environmental friendly and ideal for heavily polluted cities.

Bio Diesel is as biodegradable as salt

Bio Diesel produces 80% less carbon dioxide and 100% less sulfur dioxide emissions. It provides a 90% reduction in cancer risks.

Bio Diesel can be used alone or mixed in any ratio with mineral oil diesel fuel. The preferred ratio if mixture ranges between 5 and 20% (B5 - B20)

Bio Diesel extends the live of diesel engines

Bio Diesel is cheaper then mineral oil diesel

Bio Diesel is conserving natural resources

The Process

The process of converting vegetable oil into biodiesel fuel is called Transesterification and is luckily less complex then it sounds.

Chemically, Transesterification means taking a triglyceride molecule, or a complex fatty acid, neutralizing the free fatty acids, removing the glycerin, and creating an alcohol ester. This is accomplished by mixing methanol with sodium hydroxide to make sodium methoxide. This liquid is then mixed into the vegetable oil. After the mixture has settled, Glycerin is left on the bottom and methyl esters, or biodiesel is left on top and is washed and filtered.

The final product Bio Diesel fuel, when used directly in a Diesel Engine will burn up to 75% cleaner then mineral oil Diesel fuel.

The Technology

The technology is mature and proven

Presently, the indigenously designed bio-fuel plant for 250 lt./day is in operation. We have to design and develop bio-fuel plants of 3 to 10 tones per day capacity for installation in different parts of the country. Effective marketing chain needs to be planned for enabling farmers to

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reap the benefits directly. Bio-fuel mission will provide technological and employment generation focuses for the rural sector. Use of eleven million hectares of wasteland for Jetropha cultivation can lead to generation of minimum twelve million jobs

The Cost

The cost of Bio Diesel is largely dependent on the choice of feedstock and the size of the production facility.

If Jatropha feedstock is used, the fuel will cost depending on the country approximately US $ 0,40 per liter plus tax when applicable.

FEED STOCK PRODUCTION PER HECTARE & COST THEREOF

FEEDSTOCK Country Yield/hectare (kg)Rate per barrel(US$)

SOYA OIL USA 375 73RAPESEED OIL Europe 1000 78JATROPHA OIL INDIA 3000 43PALM OIL Malaysia 5000 46

International Laws and regulation

Several countries have active Biodiesel programmes. Such countries also have given legislative support and have drawn up national polices on biodiesel development. Wide variety of motives for action taken can observe like

Increase of energy supply security Reduction of dependence on fossil energy forms

Reduction of harmful locally acting emissions.

Protection of soil by biodegradable products

Reduction of health hazard by using non-toxic products.

Biodiesel Scenario In India

As India is deficient in edible oils, non-edible oil is the main choice for producing biodiesel. According to Indian government policy and Indian technology effects. Some development works have been carried out with regards to the production of transesterfied non edible oil and its use in biodiesel by units such as Indian Institute of Science, Bangalore, Tamilnadu Agriculture University Coimbatore and Kumaraguru College of Technology in association with Pan horti consultants. Coimbatore. Generally a Blend of 5% to 20% is used in India (B5 to B20). Indian Oil Corporation has taken up Research and development work to establish the parameters of the production of tranesterified Jatropha Vegetable oil and use of bio diesel in its R&D center at Faridabad. Research is carried out in Kumaraguru College of Technology for marginally altering the engine parameters to suit the Indian Jatropha seeds and to minimize the cost of transesterification.

Area Coverage vs. Blending Requirements

Year Diesel Demand MMT

Bio-Diesel @ 5% MMT

Area for 5% Mha

Bio-Diesel @10% MMT

Area for 10% Mha

Bio-Diesel @20% MMT

Area for 20% Mha

2005-06 49.56 2.48 2.07 4.96 4.14 9.91 8.282006-07 52.33 2.62 2.19 5.23 4.38 10.47 8.762011-12 66.90 3.35 2.79 6.69 5.58 13.38 11.19

Bio Diesel Experiments

Initially 5% of the bio diesel was blended with High-speed diesel and later increased to 20%. The railway and Indian oil corporation has successfully used 10% blended biodiesel fuel in train running between Amritsar and New Delhi in the month of Feb 2003. At Kumaraguru College of Technology an auto rickshaw was run on pure biodiesel (B100) prepared from Jatropha oil.

Conclusion

As a substitute for fast depleting fossil fuel. Bio diesel had come to stay. In future, it should also serve to reduce and maintain the price of automobile fuel. The under exploited and un exploited vegetable oils are good sources of biofuel. Our country is endowed with many such plants. Research is being carried out now to convert vegetable oils into biodiesel through biotechnological processes using biodiesel. With a concentrated and coordinated effort. Wide use of bio diesel in our country is going to be a reality in the days to come.

A national mission on Bio-Diesel has already been proposed by the committee comprising six micro missions covering all aspects of plantation, procurement of seed, extraction of oil, trans-esterification, blending & trade, and research and development. Diesel forms nearly 40% of the energy consumed in the form of hydrocarbon fuels, and its demand is estimated at 40 million tons.

Therefore blending becomes the important National Issue which apart from giving the dividends , it saves the country's exchequer. India has vast stretches of degraded land, mostly in areas with adverse agro- climatic conditions, where species of Jatropha , Mahua etc can be grown easily.

Even 30 million hectares planted for bio- diesel can completely replace the current use of biofuels. The production of Bio fuels will also boost the rural economy which will bring more enthusiasm in more than one billion lives in the area

THE PLANT- PROFILE

INTRODUCTION

Jatropha curcus is a drought-resistant perennial, growing well in marginal/poor soil. It is easy to establish, grows relatively quickly and lives, producing seeds for 50 years.Jatropha the wonder plant produces seeds with an oil content of 37%. The oil can be combusted as fuel without being refined. It burns with clear smoke-free flame, tested successfully as fuel for simple diesel engine. The by-products are press cake a good organic fertilizer, oil contains also insecticide.

It is found to be growing in many parts of the country, rugged in nature and can survive with minimum inputs and easy to propagate.

Medically it is used for diseases like cancer, piles, snakebite, paralysis, dropsy etc.Jatropha grows wild in many areas of India and even thrives on infertile soil. A good crop can be obtained with little effort. Depending on soil quality and rainfall, oil can be extracted from the jatropha nuts after two to five years. The annual nut yield ranges from 0.5 to 12 tons. The kernels consist of oil to about 60 percent; this can be transformed into biodiesel fuel through esterification.Family: Euphorbiaceae Synonyms: Curcas purgans Medic. Vernacular/common names: English- physic nut, purging nut; Hindi - Ratanjyot Jangli erandi; Malayalam - Katamanak; Tamil - Kattamanakku; Telugu - Pepalam; Kannada - Kadaharalu; Gujarathi - Jepal; Sanskrit - Kanana randa.

Distribution and habitat

It is still uncertain where the centre of origin is, but it is believed to be Mexico and Central America. It has been introduced to Africa and Asia and is now culti-vated world-wide. This highly drought-resistant spe-cies is adapted to arid and semi-arid conditions. The current distribution shows that introduction has been most successful in the drier

regions of the tropics with annual rainfall of 300-1000 mm. It occurs mainly at lower altitudes (0-500 m) in areas with average an-nual temperatures well above 20°C but can grow at higher altitudes and tolerates slight frost. It grows on well-drained soils with good aeration and is well adapted to marginal soils with low nutrient content.

Botanical Features

It is a small tree or shrub with smooth gray bark, which exudes a whitish colored, watery, latex when cut. Normally, it grows between three and five meters in height, but can attain a height of up to eight or ten meters under favourable conditions.

Leaves

It has large green to pale-green leaves, alternate to sub-opposite, three-to five-lobed with a spiral phyllotaxis.

Flowers

The petiole length ranges between 6-23 mm. The inflorescence is formed in the leaf axil. Flowers are formed terminally, individually, with female flowers usually slightly larger and occurs in the hot seasons. In conditions where continuous growth occurs, an unbalance of pistillate or staminate flower production results in a higher number of female flowers.

Fruits

Fruits are produced in winter when the shrub is leafless, or it may produce several crops during the year if soil moisture is good and temperatures are sufficiently high. Each inflorescence yields a bunch of approximately 10 or more ovoid fruits. A three, bi-valved cocci is formed after the seeds mature and the fleshy exocarp dries.

Seeds

The seeds become mature when the capsule changes from green to yellow, after two to four months.

Flowering and fruiting habit

The trees are deciduous, shedding the leaves in the dry season. Flowering occurs during the wet season and two flowering peaks are often seen. In permanently hu-mid regions, flowering occurs throughout the year. The

seeds mature about three months after flowering. Early growth is fast and with good rainfall conditions nursery plants may bear fruits after the first rainy season, direct sown plants after the second rainy season. The flowers are pollinated by insects especially honey bees.

Ecological Requirements

Jatropha curcas grows almost anywhere , even on gravelly, sandy and saline soils. It can thrive on the poorest stony soil. It can grow even in the crevices of rocks. The leaves shed during the winter months form mulch around the base of the plant. The organic matter from shed leaves enhance earth-worm activity in the soil around the root-zone of the plants, which improves the fertility of the soil.Regarding climate, Jatropha curcas is found in the tropics and subtropics and likes heat, although it does well even in lower temperatures and can withstand a light frost. Its water requirement is extremely low and it can stand long periods of drought by shedding most of its leaves to reduce transpiration loss. Jatropha is also suitable for preventing soil erosion and shifting of sand dunes.

Biophysical limits

Altitude: 0-500 m, Mean annual temperature: 20-28 deg. C, Mean annual rainfall: 300-1000 mm or more.

Soil type: Grows on well-drained soils with good aeration and is well adapted to marginal soils with low nutrient content. On heavy soils, root formation is reduced. Jatropha is a highly adaptable species, but its strength as a crop comes from its ability to grow on very poor and dry sites.

If we go 23 1/2° north of the Equator we encounter a special dashed parallel called the Tropic of Cancer; if we go the same distance south we see its companion the Tropic of Capricorn. The former is at the latitude at which the Sun passes directly overhead on the first day of summer in the Northern Hemisphere, while the latter is where the Sun passes overhead on the first day of Southern Hemisphere summer (or Northern Hemisphere Winter); these evens occur, respectively, about June 22nd and December 22nd.

So, in meteorology for the Northern hemisphere: Conversely, for the Southern hemisphere:

Spring begins on :March 1 Summer begins on :December 1

Summer on : June 1 Autumn on :March 1

Autumn on : September 1 Winter on :June 1

Winter on :December 1 Spring on :September 1

Therefore the growing seasons for JATROPHA shall be as under

For the countries falling in Northern hemisphere For the countries falling in Southern hemisphere

Nursery raising: March Nursery rising : September

Plantation: May Plantation :November

on-Forest Areas proposed for Jatropha Plantation

200 districts in 19 potential states have been identified on the basis of availability of wasteland, rural poverty ratio, below poverty line (BPL) census and agro-climatic conditions suitable for jatropha cultivation.Each district will be treated as a block and under each block 15000 ha jatropha plantation will be undertaken through farmers (BPL). Proposed to provide green coverage to about 3 Million ha of wasteland through plantation of jatropha in 200 identified districts over a period of 3 years.

Andhra Pradesh

Adilabad, Anantapur, Chittoor, Cuddapah, Kurnool, Karim Nagar, Mehboob Nagar, Nellore, Nalgonda, Prakasam, Visakhapatnam, Warrangal.

Bihar

Araria, Aurangabad, Banka, Betiah (West Champaran), Bhagalpur, Gaya, Jahanabad, Jamui, Kaimur, Latehar, Muzzaffarpur, Munger, Nawada.

Chhattisgarh

Bastar, Bilaspur, Dantewada, Dhamtri, Durg, Jagdalpur, Janjgir-champa, Kanker, Kawardha, korba, Mahasaund, Rajnandgaon, Raipur, Raigarh, Surguj.

Jharkhand

Bokaro, Chatra, Daltenganj, Devgarh, Dhanbad, Dumka, Garhwa, Godda, Giridih, Gumla, Hazaribag, Jamshedpur, Koderma, Pakur, Palamu, Ranchi, Sahibganj, Singbhum(East), Singbhum(West).

Gujarat

Ahmedabad, Amerli, Banaskantha, Bhavnagar, Junagarh, Jamnagar, Kutch, Rajkot, Surendranagar, Surat.

Goa

Panaji, Padi, Ponda, Sanguelim.

Himachal Pradesh

Bilaspur, Nahan, Parvanu, Solan, Unna

Haryana

Ambala, Bhiwani, Faridabad, Gurgaon, Hisar, Jind, Jhajjar, Mohindergarh, Punchkula, Rewari, Rohtak.

Karnataka

Bijapur, Bellary, Bangalore, Belgaum, Chikmagalur, Chitradurga, Daksina Kannada, Dharwad, Gulbarga, Hassan, Kolar, Mysore, Raichur, Tumkur, Udupi.

Kerala

Kottayam, Quilon, Trichur, Thiruvananthapuram.

Madhya Pradesh

Betul, Chhindwara, Guna, Hoshingabad, Jabalpur, Khandwa , Mand Saur, Mandla, Nimar (Khargaon), Ratlam, Raisena, Rewa, Shahdol, Shajapur, Shivpuri, Sagar, Satna, Shahdol, Tikamgarh, Ujjain, Vidisha.

Maharashtra

Ahmednagar, Aurangabad, Amrawati, Akola, Beed, Buldana, Dhule, Nasik, Osmanabad, Parbhani, Pune, Ratnagiri, Raigad, Thana, Yavatmal.

Orissa

Bolangir, Cuttack, Dhenkanal, Ganiam, Gajapati, Jajapur, Koraput, Keonjhar, Kalahandi, Nowrangpur, Nawapra, Phulbani, Puri.

Punjab

Ferozpur, Gurdaspur, Hoshiarpur, Patiala, Sangrur.

Rajasthan

Ajmer, Alwar, Barmar, Bilwara, Bikaner, Churu, Chittorgarh, Jaisalmer, Jodhpur, Kota, Sikar, Sawai Madhopur, Udaipur.

Tamil Nadu

Coimbatore, Chenai, Dharmapuri, Erode, Madurai, Perigar, Salem, Tirunelvelli, Vellore.

Uttar Pradesh

Allahabad, Agra, Balia, Bulandshare, Bhadohi, Baharaich, Chhitrakut, Deoria, Ferozabad, Faizabad, Ghazipur, Hardoi, Jaunpur, Jhansi, Kausambi, Lalitpur, Mainpuri, Partapgarh, Raibareli, Sultanpur, Shahjahanpur.

Uttaranchal

Chamoli, Dehradun, Pithoragarh, Rishikesh, Udhamsingh Nagar, Uttrakashi.

West Bengal

Balurghat, Barasat, Burdwan, Cochbehar, Darjeeling, Hoogly, Howrah,

JATROPHA BIODIESEL

OVERVIEW

The Biodiesel industry is still young and relatively small, so as it grows to a larger scale and when an infrastructure is developed, the costs of producing and marketing biodiesel may decline. New cost-saving technologies will likely be developed to help producers use energy more efficiently, increase conversion yields and convert cheaper feedstocks into high-quality biodiesel. However, in the longer term, the biggest challenge may be the ability of the feedstock supply to keep up with growing demand. The supply of soybeans, rapeseeds and other feedstocks available for biodiesel production will be limited by competition from other uses and land constraints.

As such the key to the future of Biodiesel is finding inexpensive feed stocks that can be grown by farmers on marginal agricultural land, and Jatropha is one of many plants that hold a great deal of promise. Jatropha proves to be a promising Bio Fuel plantation and could emerge as a major alternative to Diesel thus reducing our dependence on Oil imports and saving the precious Foreign Exchange besides providing the much needed Energy Security. Jatropha oil displacing conventional fossil fuel makes the project fully eligible as a CDM project, i.e. recipient

of CO2 credits.

Jatropha stacks up nicely compared with other feedstocks, as soybeans and rapeseed have a relatively low oil yield compared with Jatropha — 375 kilograms per hectare for soybeans in the United States (280 gallons per acre) and 1,000 kilograms per hectare of rapeseed in Europe (740 gallons per acre) to 3,000 kilograms per hectare of Jatropha (2,226 gallons per acre) in India. Good planning, quality planting material, standardized agronomy practices and good crop management could increase yields

COST BENEFITS SCENARIO

Cost benefits scenario will depend on various factors such as seed yield, area of Production, its gestation period, and raw oil yield during various stages of bio-diesel production-plantation, extraction, and transesterification.

An integrated Jatropha Biodiesel Project has three stages:

1. The first stage of the production process of bio-diesel from the seeds of Jatropha is the plantation stage. 2. Extraction stage of bio-diesel production

3. The final stage of bio-diesel production is the transesterification stage in which raw oil is transesterified to bio-diesel.

The combination of three stages of bio-diesel production and the role of each player in these stages have to be objectively defined as they can affect the economics of bio-diesel production Therefore, we have carried out Economic analysis considering all above three stages as separate entities.

ECONOMICS: FARMING ECONOMICS: EXTRACTION

ECONOMICS: BIODIESEL

Kindly visit relevant page for complete informationFor further enquiry kindly contact:

Director Business Development, C J Pjatrophacurcas@gmail

mailto:jatrophacurcas@gmail

In April 2003, the committee on development of BIO-FUEL, under the auspices of the Planning Commission of India, presented its report that recommends a major multi-dimensional programme to replace 20% of India?s diesel consumption. The National Planning Commission has integrated the Ministries of Petroleum, Rural Development, Poverty Alleviation and the Environmental Ministry and others. One objective is to blend petro-diesel with a planned 13 Million t of bio-diesel by 2013 (>>l000 times compared to the present world Jatropha cultivation and production), produced mainly from non-edible Jatropha oil, a smaller part from Pongomia.

For this end, eleven millions ha of presently unused lands are to be cultivated with Jatropha (for comparison: annual loss of Brazilian rain forest 2.4 Mio ha). A similar program was started with Ethanol production from sugarcane molasses, which is to replace 5% of transport petrol in the first phase. Announcements and discussion of this program have already now brought numerous institutions, private investors and some farmers to prepare and even start with work on a major Jatropha program. The move towards large-scale utilization of Jatropha is thus mainly coming from the energy discussion, with its increasing environmental and health burden and foreign exchange cost; but as well from the Forestry and Rural Development Sector, looking for future income potentials. In March 2004 a first portion for a National Program on Jatropha was released with RS. 800 Crore (161) Mio. S/Euro) to support cultivation of Jatropha on new fields and plantations of 200.000 ha. This is the first portion of a total program approved with a volume of RS. 1.500 Core (300 Mio S/Euro) and 400.000 ha, to be realized within five years. The program intends to replace 5% of diesel consumption by 2006 with 2.6 Mio t of Jatropha bio-diesel produced on 2.2 Mio ha, based on yields expected by the Government.

To plant 11 Mio ha Jatropha, the program is to become a "National Mission" and mass movement and wants to mobilize a large number of stakeholders including individuals, communities, entrepreneurs, oil companies, business, industry, the financial sector as well as Government and most of its institutions.

In the first phase, within a demonstration project, the "viability of all components" is to be tested, developed and demonstrated by Government with all its linkages in different parts of the country, sufficient production of seeds and a wide information and education of

potential participants and stake holders to allow for a self-sustained dissemination. The demonstration project consists of 2 phases, each with 200.000 ha planted in 8 states of 2 x 25.000 ha "compact area" each.

Each state will have one estenfication plant, which is meant to be economical from 80.000 t of bio-diesel onward, expected to come from 50 to 70000 ha each. Compact areas in each state will he further subdivided into 2000 ha blocks of plantation to facilitate supply of planting material, procurement of seed and primary processing through expellers.

Expected outputs from 400,000 ha are meant to be 0.5 Million t of bio-diesel, compost from the press cake, and massive generation of employment (16 Mio days/year) for the poor. The program is meant to assist to achieve emission standards and climatic targets approved by Government, to improve degraded land resources, and income to 1.9 Mio poor families at 4 families per ha, on a base of 5 Rupees/kg of seed sold.

For 2007, when the process is meant to move self-sustained, a scheme of margin money, subsidy and loan is planned to be instituted. Expansion of processing capacities is meant to run on a 30% subsidy, 60% loan, and 10% private capital basis. Additional support for mainly market based "Phase II" from 2007 onwards, is sought from International Funding Agencies, since the program addresses global environmental concern and contributes to poverty alleviation. Spat~te legislation on bio-fuels is recommended.

Land available for Jatropha curcas plantations (million hectares)

Forest areas

Agriculture (boundary Planation)

Agriculture (agriforestry)

Cultirable fallow lands

Wastelands under intergrated watershed development

Strip lands such as roads, railways, canalbanks

Total Additional wastelands

3.0 3.0 2.0 2.4 2.0 1.0 13.4 4.0

The National Mission on Biodiesel, is therefore proposed in two phases as below:

1. Phase I consisting of a Demonstration Project to be implemented by the year 2006-07 with an investment of Rs. 1500 crore ($300 million) on 400,000 ha. 2. As a follow up of the Demonstration Project, Phase II will consist of a self sustaining expansion of the programme beginning in the year 2007 leading to production of Biodiesel required in the year 2011-12.

Rationale for the Program

India is sixth in the world in energy demand accounting for 3.5% of world commercial energy consumption. A large part of the population has no access to commercial energy from hydrocarbons at all. India’s import of crude oil is expected to go up from 85 million t to 147 million t by 2007. Hydrocarbons, in India predominantly diesel (ca. 80 %, in Germany >40%) are responsible for most of the transportation fuel in

India; the transport sector is the most problematic as no realistic alternatives have been found so far. Overall transport crude oil demand was >50 Mio T in 2001.

In India, a larger share than in other countries is needed for transport purposes, in particular for diesel. Consumption is expected to rise at an annual 5.6% rate and by 65% until 21) 11. Domestic supply can presently satisfy 22% of demand and dependence on crude oil imports (>18 billion $/a) is increasing. There is a growing demand gap between production and consumption. At the same time, per capita consumption with 480 kg oil equivalent and 260 Mio people below the poverty line (>20% worlds poor) is quite low. Indian petrol reserves arc expected to last for another 20 years plus. Rising and volatile prices and respective foreign exchange costs are one of the main risk factors of the Indian economic and social development prospects.

In Europe and the US blends between 5 and 20% of bio-diesel are used as well without engine modification, in the US so far a total of 400.000 m3/a. In France 135 (5% bio-diesel blend) is mandatory. Sometimes a low percentage additive for lubrication and sulfur removal from diesel fuel is used as well In Europe bio-diesel is mainly made from rapeseed, sunflower, in the US from soybean and in Malaysia increasingly palm oil is being utilized. Nicaragua is cited as an example where Jatropha oil is used for bio-diesel to replace petro-diesel.

From a total of RS 1500 Crores total Government contribution (300 Mio S/Euro) the major share (RS 1200 Crores) is earmarked to be spent for nurseries and plantations. Legislation is to secure that use of B5 (5% blend) and successively B20 (20% blend) become mandatory all over India.

Bio-energy, as a replacement for transport fuel can be alcohol, bio-oil or bio-diesel. Bio fuels are to reduce negative environmental effects through lower emissions and climatic impacts. Local production of bio energy is projected to have a broad range of positive economic, social and environmental implications. Upgrading eroded and deforested land, creation of employment and income is part of the argument. The national program wants to stop soil and forest degradation and its environmental implications, generate employment for the poor, in particular for women, reduce climatic change and improve energy security.

Alcohol, mainly in form of ethanol is planned in India in be made from sugar cane directly or from molasses and to replace 5% of motor spirit for spark ignition engines. The alcohol program has started already. Bio-oil, without further processing, is only suitable for sturdy compression ignition engines (diesel), or asks for considerable motor modifications and maintenance. Therefore, the Indian Government focuses the processing to bio-diesel from plant oils. However, a direct use in rural engines, water pumps, tractors and generator sets to produce electricity are additional options to provide rural energy and energy security to the rural population.

Bio-diesel, considered an equal replacement of petro-diesel (with 5% less efficiency), can be made after transesterification from virgin or used vegetable oils (both edible or non-edible). It is meant to be produced in India mainly from Jatropha curcas and, to a lower extent, from other non-edible virgin oils (in particular Pongamia pinnata, called honge or pinnata, as well as Neeni, Mahua). It requires little or no engine modification up to 20% blend and minor modification at higher percentage blends. The use of bio-diesel results in substantial reduction of un-burnt hydrocarbons, carbon monoxide and particulate matters. It is considered to have ahnost no sulphur, no aromatics and has about 10%

built in oxygen, which helps to bum it fully. Its higher cetane number improves the combustion quality. Almost all present emissions standards are expected to be reached with bio-diesel.

While the country is short of petroleum reserve, it has large Arabic land as well as good climatic conditions, potential to produce biomass to be processed into bio-fuels. Demand of edible oil is higher than production, so edible oils, as mainly used in Europe and the US for transport oil, are considered not eligible. As well, edible oils are much more expensive, sometimes by a factor 3-5, in India.

Instrument to promote non-edible oils is hoped to be buy-back arrangements with oil companies to be put in place and mandatory use of bio-diesel blends. The Jatropha program is to be combined with other programs of the Ministry of Rural Development to attract growers, entrepreneurs and financial institutions so that a "self sustaining programme of expansion takes off? on its own, with the Government playing mainly the role of a facilitator. Hence, for the expansion phase, the Government will need "to give only marginal financial support". The rural community will have the first right of access to the oil for its own use. Responsibility for availability of sufficient processing units will be with the Ministry of Petroleum. Studies have revealed that "direct and indirect impact of bio-diesel e.g. employment generation, balance of trade, emission benefits etc. are substantial and need to be accounted for" while considering the duty structure on bio-diesel and HSD.

However, a clear comparison between the yields and economics of different edible and non-edible oils, and why production of non-edible oils for farmers is expected to be more viable than of edible oils, has not been found inside the program argument. Duty structure is meant to be designed in a way that the price of bio-diesel will be slightly lower than that of imported petro-diesel fuel.

Jatropha curcas is considered most suitable since it uses lands, which are largely unproductive for the time being and are located in poverty-stricken and watershed areas and degraded forests. Jatropha is planned as well to be planted under the poverty alleviation programmes that deal with land improvements.

For the planned 13 Mio ha Jatropha, 3 Mio ha are to be identified in 38 Mio ha under stocked forest, 3 Mio ha hedge equivalent from 140 Mio ha of agricultural land and 2 Mio ha for absentee landlords since, Jatropha does not require looking after and gives a net income of Rs 15000/ha". In addition, land comes from 2.4 Mio ha out of 24 Mb. ha of fallow lands; two Mio ha from integrated watershed development programmes; one Mio ha from stretches of public land along railway, roads/ canals and 4 Mio ha from "other waste lands".

As a by-product the oil cake and glycerol are to be sold to reduce the cost of processing biodiesel to par with the oil price. The sales cost of bio-diesel is expected to be very close to the cost of oil obtained for production, since the cost of trans-esterification is meant to be recoverable to a great extent from the income of oil cake (3-5 Rupees/kg) and glycerol (50 Rupees/kg). The cost of bio-diesel is expected to reach between 15 and 16.3 Rupees at an assumed price of RS 5 per kg of seed and at 3.2 kg of seed for I litre of oil. "Thus the plantation, oil extraction and production of bio-diesel are economically feasible". Overall oil bio-diesel recovery is expected to be 91% at an oil portion of 35%. There is a plant density of 2500 trees per ha assumed, in mixed forestry areas 2500 trees each are considered one ha. An average seed yield of 1.5kg/tree and 3.75 tiha are expected corresponding to 1.2 t of oil /ha and 2.5 t of fertilizer. Bio-diesel is expected to be available on the market from 2005/2006 onwards. Work created of 300 "man" days /ha would allow 550.000 people to escape poverty in the first part of

the program. A transesterification plant is meant to cost Rs75 Crores (5/Euro 12.5 Mio; I crore is equivalent to Rs 10 Mio.), and procurement and expeller centre Rs 80 lakh (S/Euro 160.000; one lakh is equivalent to Rs 100.000),)NEEDS AND RESPONSIBILITIES

A number of research and development needs have been defined by the program:

Genetically improved tree species, to produce better quality and quantity of oil This includes tree improvement programs, identification of candidate plus trees,standardization of nursery raising techniques, (vegetative/seed/tissue culture)Scientific data for planting density, fertilization practices, planting procedures Technology practices for adoption at grass root level.

Research on inter-cropping for agriculture, agro-forestry and forestry application

Processing techniques including bio-diesel and uses of by-products

Utilisation of different oils and oil blends including potential additives needed

Blending, storage and transport of bio-diesel

Engine development and modification

Marketing and trade

Watering techniques, water and irrigation needs and wastewater use are not part of the program

There are some "micro-missions" or task forces planned for the different tasks:

Ministry of Forestry; JFMCs (planting on forest lands) Novod (planting on non-forest lands)

Ministry of Rural Development (other land implementation);

Khadi Village and Industries Commission ? KVIC (procurement of seeds and oil extraction)

Ministry of Petroleum (trans-esterification) and

Different Research Agencies (research and development),

All R&D activities are to be coordinated by a committee under the Planning commission.

Some of the institutions presently involved in R&D activities are the following:

Punjab Agricultural University (PAU) Coiabatore Horticultural University with 250 I/day bio-diesel production facility

institute of Petroleum (lIP)

Indian institute of Chemical Technology (IJCT)

Indian Institute of Technology (Delhi, Madras)

Indian Oil Corporation (bC) with 60 kg/day bio-diesel production facility at Fardabad

Mahindra&Màhindra (works on tractors from Karanji bio-diesel; pilot plant in Mumbai)

(Courtesy " case study" jatropha curcas by GFU)

Issues for Discussion

The present national program is probably not only the most ambitious bio-diesel program ever launched internationally, but also one of the larger programs to jointly address energy needs, poverty alleviation and erosion control/deforestation.

The present Indian program is attempting to integrate and combine crucial economic, social and environmental aspects

Program documents are believed to gravely under estimate production and transfer costs, needed inputs and time lag expected until production and processing and infrastructure is up to planned levels; at the same time, they overestimate yields and thus expected incomes.

Even though a program combining the issue of underutilized species and soils with energy issues should be mandatory in the Indian context, it is feared that over-optimistic projections may lead to a severe setback for both issues.

Even more so, since farmers might be the ones who invest on a long-term basis into the Jatropha crop once again, without getting yields and returns as planned.

ECONOMICAL-ISSUE

Average oil yields of over 1 t/ha asking for seed yields close to 5 t/l ha can most likely only be attained on medium soils with irrigation, pruning, fertilization and sufficient sun exposure. However, with the plant material presently available and past experiences it remains questionable whether similar yields are even then realistic on a broad scale in a short term. To create high yielding varieties on a million ha scale, a lot of time-consuming breeding and selection work has to succeed before. Figures and information oh high yields seem to be coming rather from hearsay from remote countries like Nicaragua, than from many Indian plantations in the field, which have been evaluated and described.

Urgently, dry and wet weight, fruit and seeds yields will have to be more clearly distinguished in all reports to allow any reliable economic calculation.

To attain yields envisaged, higher inputs are needed which in turn result in higher production costs and thus higher oil prices,

As well, processing cost for expeller and bio-diesel production will be higher than assumed. If the bio-diesel production is to profit from sale of the nutrient rich press cake (at 3-5 RS/kg, which is almost the same price as assumed for the whole fruit), to keep the price of processing low, then inputs into nutrients and fertilizer on the Jatropha fields will have to be further increased.

Glycerol, if indeed purified to needed quality levels, would flood the market, reducing the actual market price of RS. 50/kg (1 S/Euro) considerably.

To achieve the ambitious national goals presently envisaged a well-coordinated and much larger input will have to be mobilised and more price incentives will have to be secured for farmers, processing companies or wholesalers on a reliable basis.

For this, economies of by- products, reforestation, soil improvement, social effects, availability of rural energy, foreign exchange savings, and erosion related and green house gas effects need to be quantified, priced and attributed separately, to reach at market prices for each step, which allow viable private investments at different locations.

There is a range of options for optimization, by using and intercropping with other non-edible oils, edible oils and vegetables, better use of by-products and other income sources (i.e. soap, medicine and bee keeping). In spite of many shortcomings and insecurities of the present

argument in India, there is sufficient good justification for an investment into a rural non-edible oil program at this stage, even with more realistic figures and projections.

Bio-diesel needs an attractive price for raw material production and processing, but as well an attractive price to compete with petro-diesel and rural energy sources.

As long as alternative incomes from other crops, labour and even reforestation efforts persist to be considerably higher, the program is bound to stagnate or even fail fully due to a lack of oil supply.

If other targets as soil improvement, reforestation, poverty alleviation etc. are to be combined with commercial bio energy production, they need to be accounted for and brought in line with market based economic cost figures, to reach at prices that allows production and consumption on a sustained basis.

To this end, transparent, long-term market regulations or subsidies will have to be designed and established, as is done in many other countries. For an increase of oil production alone a guaranteed, mandatory and controlled use of Jatropha based B5, BI0 d B20 would be sufficient.

Bio-diesel Processing

Government calculations assume a minimum of 100 ha Jatropha for one expeller and collection centre and 1000 ha for one esteriflcation plant. Making oil from seeds has a long tradition with rural oil mills in India, however with potential for adaptation to Jatropha and improvement of efficiency. Processing raw Jatropha oil into bio-diesel only exists on a small and pilot scale in India meant for rural industries. For large scale, imported technology is expected to be applicable.

Handling, transport, storage, drying, blending, engine conversion and processing of seed and oil will ask for considerable effort in the medium term. This applies as well for quality control, where possibly the new EU norms are to be adapted. The present approach, to leave development and capacity building issues in this field to the private sector, but give market-based incentives and loans, appears appropriate. However, framework regulation and cost analysis should remain a Government task to assess and understand the real potential and shortcomings of economies of the overall program.

Plant Oil Market

Globally there are about 100 Mio t plant oil produced per year, with a quarter soybeans, a quarter palm oil followed by sunflower, groundnut, cotton, coconut and olive oil. In India, 6.7 Mio. t are produced (mainly from 14 edible oils led by mustard, groundnut, soja, coconut and rice, 2001). However all oils together produced in India are not sufficient for home consumption, cheaper palm oil has to be imported from the international market. Overall ethanol production for comparison is 1.3 Mio t.

One important reason for the Government preference to use non-edible oils to replace diesel is the lower cost (at present). There is little indication and argument that this low cost can be maintained, as soon as not only the cost for harvesting but also Jatropha production costs have to be accounted for, besides transportation and processing. High price sensitivity and volatility, with higher demand resulting in higher prices, should be expected with the massive market intervention planned.

Institutional Set-up

There is a well thought through institutional structure planned for the program. Coordination of the Program from the National level as foreseen is a good basis to get all relevant public non-government and private stakeholders from Rural Development, Agriculture, Environment, Forestry, Energy and Industry involved. Different micro-missions take national responsibility for different tasks. Good interaction and coordination between all active regional and hierarchical levels is necessary, in continuation of the planning phase of the program.

A good and open inter-institutional cooperation during program implementation will be the key to successs. Seminars, including trainer seminars as planned, are needed to establish a basic knowledge on the different levels of intervention. It is hoped, that activities will indeed be open and transparently documented and discussed to allow necessary corrections and synergies immediately~?A focal point to collect all information should be built up and open to the public.

Other Uses of Jatropha

A more detailed analysis however, of use and sales to industries for tanning, candle making, soap manufactures, ship industry (varnish) chemical and cosmetic industry for different non-edible oils should be done and documented. Considering Jatropha for bio-diesel production only without using synergies from other application is not thought to be wise by any of the stakeholders, even though any practical Use seems to be very limited at present.

Financing

Financial support or support in kind for the establishment of the crop, sometimes as well for liquidity to farmers is required during the first year without yield.

Now intense discussions been observed concerning financing mechanism for the present National Indian Program. To replace a relevant share of diesel in India, massive investments are required.

To deal with the high initial capital demand and long period for Jatropha cultivations, until they reach full maturity, Government may have to provide loans for growers directly as well. It will be necessary to analyze the current prospects, potentialities and constraints of the Jatropha approach for microfinance to rural poor, women, cooperatives and tribal communities, since demand for liquidity will be substantial, if the

program is to succeed as well with its social component. To enable the poor to access credit for activities that generate income, inclusion of micro-finances into the program should be considered to be made obligatory.

In the absence of an operational market, a demand push may as well have to be taken by legislation or by guaranteed buy-back agreements with minimum prices for the harvesting period of the trees - said to be up to 50 years in principle, however the economic optimum will be shorter - backed by Government. Because of its multiple socio-economic and environmental benefits, Government may as well allocate and transfer public lands on a long-term basis. In addition, Government should try at an early stage to qualify for funds from the Global Environmental Facility.

It is important; to discuss and develop a clear set of financial instruments for farmers and for other parts of the industry including rural financial institutions to rely on, beyond present! Subsidized demonstration projects.

Irrigation Issue

Access and availability of clean water need attention as seriously as climatic and energy problems. Jatropha is considered an ideal crop for India, better than sugar cane based ethanol, particularly, since "it does not require much water" and the country is facing huge water scarcity for which there is no economic solution as of now. Its drought resistance is one of the key arguments to promote Jatropha. Since in India shortage and low water availability are one of the main factors of those unused lands identified for Jatropha plantations, water use and yield response to droughts are crucial to the success of the planned program. This in particular, since Jatropha not only competes for water with other food crops but sometimes also with drinking water if used instead for irrigation..

Energy crops, in particular perennials, often have a high water use due to their long growing season and deep rooting system. Therefore, aspects of Jatropha water use can be decisive for its sustained introduction for energy utilization.Information on Jatropha?s annual water use structure and respiration losses, its needs in different root zones a. o. seem to be not yet established. All what is known is that Jatropha sheds all its leaves with severe water shortages.

There is a common understanding, however, that green cover to unused lands acts in favour of the overall water balance in respect of soil and microclimate, however effects of this perennial on aquifer and ground water recharge are not that obvious. Erosion control is undoubtedly a positive factor, plantations can be used for rainwater harvesting, and favour watershed management projects at hillocks.

Since there are reports, that droughts and water logging have destroyed young plantations, information that is more detailed needs to be collected on real behaviour at extreme conditions.

Assuming two irrigation per year as assumed in the National Program is hard to go along with, since if irrigation systems are available, then higher frequency should be expected or recommended. This corresponds as well to the information gathered in India on commercial Jatrophause, where all discussion partners assumed that regular irrigation appears to be a precondition for any active and commercial plantation efforts in those areas.

The Nicaraguan and Belizean example, often cited in India as examples for assumed high yields, have mostly much higher rainfalls than the average precipitation in India. It appears therefore most crucial to clarify actual yield prospects on rain-fed areas in India, or discuss cost and effects of irrigation, to avoid further investment failures.

Forestry

There is no confirmed information that Jatropha indeed fits into reforestation efforts, which combine Jatropha and oil production with other highergrowing forestry tree crops. According to the available information, higher crops shade Jatropha to a degree that fruiting becomes marginal

Marginal lands, lands with limited access and infrastructure, tribal and forestry land must be expected to have lower productivity, at least in the initial phases.

Cultivation and Botanical Issues

Jatropha is said to be a drought hardy shrub, non-demanding, tolerant to extremes, suitable to tropical and non-tropical climate and considerable climatic changes, even up to light frost.

Tree borne oil seeds have always been a component of traditional agricultural systems practiced in India. However, the degree of domestication in tree-borne oilseed species as a whole is at a very early stage compared to most cultivated crops. Increased domestication and increased inputs might increase pests and diseases, now assumed low in Jatropha.Influence of increased mineral fertilizer and water doses on pests, oil content or yield are not known.. In intensively cultivated areas, irrigated lands might be used for food production, recommending to direct breeding from maximum yields towards reduced input needs for those cases.For forestry projects, possibly as well for farm-based agro-forestry, the shade tolerance might be the key selection criterion to be further developed.

Male flowers dominate the plant; flower visitors needed for the predominant male flowers include bees, ants, thrips and flies. To what extent bees can be produced with positive synergies on Jatropha pollination and honey yields is an open issue.

Researchers from the University of Hohenheim are said to have found particularly resistant high-yield varieties in Mexico and Mali; these are being tested in India.

As well, they have tested survival rates of samples from different regions of India with a wide variability. The University in cooperation with Daimler-Chrysler is planning some systematic research on yield patterns. One hope of improved economies for Jatropha has been for long non-toxic species. One non-toxic specie, without known yields, has been found in Central America.

There has been little genetic improvement, identification of elite germplasms, tissue culture experiments and propagation so far nor a systematic or coordinated capture of genetic resources in seed banks for its regeneration, hybrid production and sustainable cultivation.

As well, preference of cuttings, seedlings (with or without polybags), or other propagation methods, the level of pruning, trimming, to extend the juvenile phase of the plant, and suitable spacing of the plant has barely been optimised so far.

Lifetime under cultivated cbnditions is not known yet.

Plant density recommendations fluctuate between 1000 plants and 5000 plants per ha, with no relation to genotype, cultivation method or soils. As well, there are still a number of open issues to be researched on optimal flowering and fruiting patterns. Timing and degree of pinching, pruning and a close. For the micro credit schemes, factors influencing time lag until full yield can be achieved on different lands, is of paramount importance,however not yet known. Uses as pesticide, moluscicide and for medicinal purposes might as well require specific selection, breeding and cultivation practices.

Present efforts in the frame of the national program leave the cropping system open. The focus is on underutilized lands, but seems to expect a rapid increase of production through monoculture planting of Jatropha on agricultural fields, and mixed forestry cropping in forestry areas.

Cases where full use of the different benefits was made in an organised manner have not been found reported, besides discussions about potential benefits.

Competing Resources

Jatropha is competing with other food and forest crops for land, water, nutrients, sun, labour, private and public capital and institutions.

It is competing with investments in other non-edible and edible oils, with renewable and non-renewable energy sources with other programs to improve the environment, for employment, rural industrialisation and poverty alleviation.

Different cultivation systems and program designs change the pattern of competition and relative advantages. A thorough economic analysis has to assess opportunity costs of these factors and their sensitivity.

On present markets and within reforestation and renewable energy programs the crop has barely been able to compete successfully so far.

The Indian National Jatropha Program as far as can be seen, is not yet based on an analysis of competing production factors.

There exists some comparison between different crops to replace diesel, and there is a very broad base of field experience from different organizations and from energy and rural development specialists integrated into and influencing the Indian National Program.

In any case, a number of factors are changing in favor of Jatropha.

There is indication that viability of Jatropha, if not attained yet, is a question of time.If this is the case, then broad preparation to be commenced now is well justified. Changing factors are the following:

Increased demand and casts for diesel, higher foreign exchange needs for diesel; an increase of non-cultivated, non-forested and eroded lands; higher rural energy demand and energy costs; and, at the same time, a decrease of rain and water availability, as well as decreasing rural incomes. A main concern of the international discussion on bio energies is whether less food is available with increased Jatropha cultivation to the low-income population.

In the Indian Government program, officially mainly non-used land is targeted for Jatropha and present price levels do not indicate that Jatropha can directly and successfully compete with agricultural crops and vegetables grown yet.

If indeed lands were cultivated, which lay idle so far, employment generation would reach women and low-income groups in the villages.

Additionally, Government plans to support an approach, which focuses self-help activities, social forestry, cooperatives and the like, to assist organizations of rural poor to improve their living conditions through increased Jatropha cultivation.

Whether it would be more advisable to cultivate other crops cannot be judged on an abstract level; it is assumed and hoped that growers themselves will make a rational investment decision, if conditions and guarantees given are favorable.

Here policy has to avoid a negative change and fluctuations in prices and markets, since Jatropha is a long-term investment and can ruin a farmer, if minimum revenue cannot be maintained.

If irrigation and fertilization is considered necessary and installed, then obviously other crops could be established in those lands as well and possibly increase benefits.

Compared to other bio energy efforts the nearest comparison goes with the alcohol program from sugar cane molasses meant to replace 5% of the national petrol consumption. Sugar cane fields are normally prime lands, often asking for severe fertilization and irrigation, being grown as a monoculture and not known to improve soil quality. As well, sugar cane, to a lesser extent in India, is often grown on large plantations, which would be well suitable for food cultivation of low-income groups. Hence, from a social and environmental point of view, Jatropha seems to be more recommendable.

Most urgent is the need to collect scientific data on the fruit and oil yield pattern at different sites and their agro-inputs needed. There is undoubtedly a big margin for selecting and breeding crops with higher yields of suitable oil, including the use biotechnology, tissue culture, etc.

In summary, the Jatropha program is felt to compete not directly with food production, however, economic mechanisms are complex to preview the full chain of effects. Positive effects on poverty alleviation are thought to be clearly dominating if compared to many other energy projects. An optimization, however, asks for an analysis that is more detailed.

Nutrient Aspects

The efficient use of nutrients in the production of Jatropha is important to minimise the input needs.

Efficiency of nutrient use of Jatropha and best respective cultivation practices, has not yet been found discussed. The absence of tillage in an established perennial Jatropha crop will furthermore reduce mineralization. Consequently leaching should be limited, apart from during the establishment period, In Nicaragua however mechanical tillage was performed in most fields. The permanent cover can reduce surface run-off of soil, nutrients and organic matter.

Predominant sale of the whole seed, the storage organs, to the oil mill, which then sells on the material in the local market as a fertiliser for higher value crops (at 3-5 RS. per kg), has to be considered critically in respect of long-term yields of Jatropha.

Nutrient and fertilizer needs and best frequency of application for Jatropha in relation to its yield pattern appears to be still largely unknown.

For commercial production purposes, farms and nurseries all assumed a regular fertilization demand, preferably through organic matter. Without fertilization, yields will barely build up to discussed levels according to soil type and other factors. Quantities needed, composition and frequency want to be assessed in detail.Here as well, the use of waste water, sludge or even solid wastes to improve nutrient balance and viability, should be looked into more seriously

The picture in India is contradictory, diverse and complex and thus statements tend to simplify due to the enormous range of situations, statements and institutions involved, In any case, the often cited "Jatropha System", solving environmental energy, import, employment, poverty and gender issues at the same time, needs to be subdivided into different "Jatropha systems" with empirically based reliable cost, yield, social, economic and environmental projections. Time span between policy planning and actual implementation, yields, resulting market prices and needed inputs have to be brought into a realistic balance to secure a sustained program continuation.

ECONOMICS

JATROPHA OIL PRODUCTION

The economic scale for cost of bio-diesel production is determined taking into account the amount of raw oil extracted from a seed to be +30%. The amount of raw oil content in the seed again depends on the quality of the seed. The output of the raw oil from the extraction unit is a key determining factor for deciding the capacity of the transesterification unit. The cost of the extraction stage is based on the capacity of the extraction plant, which, in turn, is based on the seed yield.

Together with the oil, by-products of the production are:1. Press cake2. Residual of sedimentation process

The Press cake has mineral contents of nitrogen (6%), phosphorous (2.75%) and potassium (0.94%) similar to chicken manure, the press cake can be used as organic fertiliser. An application of 1 ton press cake is equivalent to 200 kg of mineral fertiliser (NPK 12:24:12).

In the present calculation, the price for the press cake is taken lowest possible (42 $/ton).

The estimated price for 1 ton of residual is 120 US$/ton which is used for making washing soaps.

SEEDS SELF PRODUCTION OR PURCHASING

Now question is that seeds should be purchased or own produced

We have analysis in both scenario and found the in scenario of own seeds the ROI is just 3 times in comparison of seeds purchasing Owning the Plantation could bring a higher yield justified by an intensive cultivation, a strict control of the investments (i.e. fertilising), and the personnel. Purchasing the seeds does not allow planning in an extremely detailed way, but the rather uncertain and unforeseeable Market trend might make the consideration not so crucial

Further different plant capacities have different fixed and variable costs, which ultimately affect the final pricing of bio-diesel. The other important factor on which the pricing of bio-diesel depends is the extraction efficiency, which raises the yield of raw oil and reduces the long-run marginal cost of bio-diesel production.

Solvent extraction plants are more efficient and may yield +5% more oil than the oil expellers. Since minimum quantity of seeds processed by solvent extraction plant is +200 tons per day, we may only assume to install it if plantation size is +7000 ha.

Following are the analysis of cost/return of SVO production

SCANERIO I: OIL EXTRACTIONWith Purchased seeds

SCANERIO II: OIL EXTRACTIONWith own seeds

CAPACITY: 3000 TON/YEAR CAPACITY: 3000 TON/YEARCAPITAL COST $250,000.00 CAPITAL COST $250,000.00

Required tonnage of seeds 9625 Required tonnage of seeds 9625

Oil Production 3000 Oil Production 3000

Press Cake 6000 Press Cake 6000

Residual 500 Residual 500

PRICE PRICE

Oil Production $550.00 Oil Production $550.00

Cake $42.00 Cake $42.00

Residual $120.00 Residual $120.00

SALES SALES

Oil Production $1,650,000.00 Oil Production $1,650,000.00

Cake $252,000.00 Cake $252,000.00

Residual $60,000.00 Residual $60,000.00

TOTAL $1,962,000.00 TOTAL $1,962,000.00

COGS COGSSeeds $140.00 $1,347,500.00 Seeds $50.00 $481,250.00

Crushing Expenses $45,000.00 Crushing Expenses $45,000.00

Utility $30,000.00 Utility $30,000.00

H & S $30,000.00 H & S $30,000.00

Personnel $15,000.00 Personnel $15,000.00

TOTAL $1,467,500.00 TOTAL $601,250.00

Gross Profit $494,500.00 Gross Profit $1,360,750.00

Depreciation 10.00% $25,000.00 Depreciation 10.00% $25,000.00

Interest 9.00% $22,500.00 Interest 9.00% $22,500.00

PBT $447,000.00 PBT $1,313,250.00

Taxes 30.00% $134,100.00 Taxes 30.00% $393,975.00

NET PROFIT $312,900.00 NET PROFIT $919,275.00

ROI 1.2516 ROI 3.6771

FOR A PLANTATION SIZE: 1000 HA[US$ ‘January, 2007]

FOR A PLANTATION SIZE: 10 000 HA

SCANERIO III: OIL EXTRACTIONWith Purchased seeds

SCANERIO IV: OIL EXTRACTIONWith Purchased seeds

CAPACITY: 34650 TON/YEAR SOLVENT EXTRACTION CAPACITY: 34650 TON/YEAR SOLVENT EXTRACTIONCAPITAL COST $450,000.00 CAPITAL COST $450,000.00Required tonnage of seeds 96250 Required tonnage of seeds 96250Oil Production 34650 Oil Production 34650Press Cake 57750 Press Cake 57750Residual 5000 Residual 5000PRICE PRICE

Oil Production $550.00 Oil Production $550.00Cake $42.00 Cake $42.00

Residual $120.00 Residual $120.00SALES SALES

Oil Production $19,057,500.00 Oil Production $19,057,500.00Cake $2,425,500.00 Cake $2,425,500.00

Residual $600,000.00 Residual $600,000.00TOTAL $22,083,000.00 TOTAL $22,083,000.00COGS COGS

Seeds $140.00 $13,475,000.00 Seeds $42.00 $4,042,500.00


Utility $311,850.00 Utility $311,850.00

H & S $346,500.00 H & S $346,500.00

Personnel $173,250.00 Personnel $173,250.00TOTAL $14,722,400.00 TOTAL $5,289,900.00Gross Profit $7,360,600.00 Gross Profit $16,793,100.00Depreciation 10.00% $45,000.00 Depreciation 10.00% $45,000.00Interest 9.00% $40,500.00 Interest 9.00% $40,500.00PBT $7,275,100.00 PBT $16,707,600.00Taxes 30.00% $2,182,530.00 Taxes 30.00% $5,012,280.00NET PROFIT $5,092,570.00 NET PROFIT $11,695,320.00

[US$ ‘January, 2007]

For Detailed Financial Analysis Kindly Obtain Our JATROPHA OIL MAKING BUSINESS PLAN

For further enquiry kindly contact:

Director

Business Development, C J [email protected]

ECONOMICS: JATROPHA FUEL FARMING

mailto:[email protected]

http://www.jatrophaworld.org/40.html

Of course the interest in the Jatropha plantation primarily focuses on Biodiesel. Here, the key question is: Will it be possible to establish the right cultivation and processing methods so that the Jatropha plant can produce a high-quality fuel which can compete with petrochemical diesel in terms of price? After all, one key element that makes all the difference between success and failure is the cost factor — in other words, the potential returns.

We are not in favor of the implementation of a high-tech agrarian concept that warrants for maximum input and delivers bumper crops. Contrary, we are looking for a practicable type of cultivation that is compatible with the routines and possibilities of local farmers, so that the Jatropha plantations can be profitable for the rural cultivators with a minimum input of men, money and materials.

The CJP experts working on the Jatropha plantation have developed the best method of cultivating these plants, which require the lowest possible investment of money, labor and materials.

Yield is a function of light, water, nutrients and the age of the Plant. Good planning, quality planting material, standardized agronomy practices and good crop management may handsomely increase the yields ASSUMPTIONS FOR COST/BENEFIT ANALYSIS Though Jatropha starts yielding from very first year, we have taken no yield for 1st and 2nd year just to ensure proper pruning and development of the plant Crop density with 2mx2m pattern shall be 2500 plants per ha

Seeds tonnage per ha has been taken 0, 0, 2.5, 5.0, 6.25, 9.6 for 1, 2,3,4,5, and 6th year respectively

Intercropping has been presumed for 30% of plantation area

CDM calculation has been taken as minimum for +1000 ha plantation

Sale price of seeds has been taken on lowest side

Rate of interest has been taken as 9% per annum for 5 years

MODEL 1: 20 ha JATROPHA - PLANTATION

OUTPUT

Crop yield $ 21000

INPUTS

CAPITAL

Crop Cultivation cost $ 13000

OPERATING COST

Crop harvest cost $ 3200

MAINTENANCE COST

Crop care cost $ 3080

REVENUE $ 14720**

*(in 5th year)

MODEL 2: 100 HA PLANTATION US$ ‘January, 2009

Year 2009 2010 2011 2012 2013 2014 2015

TOTAL HECTARES 100 100 100 100 100 100 100

Total no. of Jatropha Plants 250000 250000 250000 250000 250000Production of Jatropha seeds (in ton) 250 500 625 962.5 962.5

PRICES

Price per TON of Jatropha Seeds (in US$)

140 140 140 140 140

SALES

Jatropha Seeds 35000 70000 87500 134750 134750

INTERCROP 3000 3000 3000 3000 3000 3000

Total Sales 0 3000 38000 73000 90500 137750 137750

Cost of Sales

CAPITAL COST 68000

Operative Expenses 30000 9600 24550 32300 36175 46637.5 46637.5Maintenance Expenses 4000 4100 4200 4400 4600 4600

Total cost of Sales 98000 13600 28650 36500 40575 51237.5 51237.5

PBT -98000 -10600 9350 36500 49925 86512.5 86512.5Depreciation

Interest Expenses

NET PROFIT -98000 -10600 9350 36500 49925 86512.5 86512.5


Year 2009 2010 2011 2012 2013 2014 2015

TOTAL HECTARES 1000 1000 1000 1000 1000 1000 1000

Total no. of Jatropha Plants 2500000 2500000 2500000 2500000 2500000Production of Jatropha seeds (in ton) 2500 5000 6250 9625 9625

PRICES

Price per TON of Jatropha Seeds (in US$) 140 140 140 140 140

SALES

Jatropha Seeds 350000 700000 875000 1347500 1347500

Carbon Trading (in US$) 20000 20000 20000 20000 20000 20000INTERCROP 30000 30000 30000 30000 30000 30000 30000

Total Sales 30000 50000 400000 750000 925000 1397500 1397500

Cost of Sales

CAPITAL COST 681250

Operative Expenses 177600 62400 180900 258400 297150 374650 374650

Maintenance Expenses 40000 41000 42000 44000 46000 46000

Administrative+ OH Expenses 10000 10000 10000 10000 10000 10000 10000Total cost of Sales 868850 112400 231900 310400 351150 430650 430650

PBT -838850 -62400 168100 439600 573850 966850 966850Depreciation 2500 2500 2500 2500 2500 2500

Interest Expenses 90000 90000 90000 90000

NET PROFIT -838850 -154900 75600 347100 481350 964350 964350


Year 2009 2010 2011 2012 2013 2014 2015

TOTAL HECTARES 10000 10000 10000 10000 10000 10000 10000

Total no. of Jatropha Plants 25000000 25000000 25000000 25000000 25000000 25000000 25000000

Production of Jatropha seeds (in ton) 25000 50000 70000 96250 96250

PRICES

Price per TON of Jatropha Seeds (in US$)

$140 $140 $140 $140 $140

SALES

Jatropha Seeds $3,500,000 $7,000,000 $9,800,000 $13,475,000 $13,475,000

Carbon Trading (in US$) $200,000 $200,000 $200,000 $200,000 $200,000 $200,000

INTERCROP $1,050,000 $1,050,000 $1,050,000 $1,050,000 $1,050,000 $1,050,000

Total Sales $1,250,000 $4,750,140 $8,250,140 $11,050,140 $14,725,140 $14,725,140

Cost of Sales

CAPITAL COST $7,162,500

Operative Expenses $442,400 $81,600 $720,600 $1,220,600 $1,620,600 $2,145,600 $2,145,600

Maintenance Expenses $800,000 $800,000 $800,000 $800,000 $800,000 $800,000

Administrative+ OH Expenses $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000

Total cost of Sales $7,704,900 $981,600 $1,620,600 $2,120,600 $2,520,600 $3,045,600 $3,045,600

PBT ($7,704,900) $268,400 $3,129,540 $6,129,540 $8,529,540 $11,679,540 $11,679,540

Depreciation $6,000 $6,000 $6,000 $6,000 $6,000 $6,000

Interest Expenses $764,000 $764,000 $764,000 $764,000 $764,000 $764,000

NET PROFIT ($7,704,900) ($501,600) $2,359,540 $5,359,540 $7,759,540 $10,909,540 $10,909,540

For Detailed Financial Analysis Kindly Obtain Our JATROPHA FARMING BUSINESS PLAN for 20 ha, 100 ha, 1000 ha, 5000 ha, 10000 ha, 100,000 ha etc. For further enquiry kindly contact: Director Business Development, C J [email protected]+91 9829423333


http://www.jatrophaworld.org/

ECONOMICS

JATROPHA OIL PRODUCTIONThe economic scale for cost of bio-diesel production is determined taking into account the amount of raw oil extracted from a seed to be +30%. The amount of raw oil content in the seed again depends on the quality of the seed. The output of the raw oil from the extraction unit is a key determining factor for deciding the capacity of the transesterification unit. The cost of the extraction stage is based on the capacity of the extraction plant, which, in turn, is based on the seed yield.

Together with the oil, by-products of the production are:1. Press cake2. Residual of sedimentation process

The Press cake has mineral contents of nitrogen (6%), phosphorous (2.75%) and potassium (0.94%) similar to chicken manure, the press cake can be used as organic fertiliser. An application of 1 ton press cake is equivalent to 200 kg of mineral fertiliser (NPK 12:24:12).

In the present calculation, the price for the press cake is taken lowest possible (42 $/ton).

The estimated price for 1 ton of residual is 120 US$/ton which is used for making washing soaps.

SEEDS SELF PRODUCTION OR PURCHASING

Now question is that seeds should be purchased or own produced

We have analysis in both scenario and found the in scenario of own seeds the ROI is just 3 times in comparison of seeds purchasing Owning the Plantation could bring a higher yield justified by an intensive cultivation, a strict control of the investments (i.e. fertilising), and the personnel. Purchasing the seeds does not allow planning in an extremely detailed way, but the rather uncertain and unforeseeable Market trend might make the consideration not so crucial

Further different plant capacities have different fixed and variable costs, which ultimately affect the final pricing of bio-diesel. The other important factor on which the pricing of bio-diesel depends is the extraction efficiency, which raises the yield of raw oil and reduces the long-run marginal cost of bio-diesel production.

Solvent extraction plants are more efficient and may yield +5% more oil than the oil expellers. Since minimum quantity of seeds processed by solvent extraction plant is +200 tons per day, we may only assume to install it if plantation size is +7000 ha.

Following are the analysis of cost/return of SVO production

FOR A PLANTATION SIZE: 1000 HA

SCANERIO I: OIL EXTRACTIONWith Purchased seeds

SCANERIO II: OIL EXTRACTIONWith own seeds

CAPACITY: 3000 TON/YEAR CAPACITY: 3000 TON/YEAR

CAPITAL COST $250,000.00 CAPITAL COST $250,000.00





PRICE PRICE


Cake $42.00 Cake $42.00


SALES SALES


Cake $252,000.00 Cake $252,000.00


TOTAL $1,962,000.00 TOTAL $1,962,000.00

COGS COGS

Seeds $140.00 $1,347,500.00 Seeds $50.00 $481,250.00


Utility $30,000.00 Utility $30,000.00

H & S $30,000.00 H & S $30,000.00


TOTAL $1,467,500.00 TOTAL $601,250.00

Gross Profit $494,500.00 Gross Profit $1,360,750.00



PBT $447,000.00 PBT $1,313,250.00

Taxes 30.00% $134,100.00 Taxes 30.00% $393,975.00

NET PROFIT $312,900.00 NET PROFIT $919,275.00

ROI 1.2516 ROI 3.6771[US$ ‘January, 2007]

FOR A PLANTATION SIZE: 10 000 HA

SCANERIO III: OIL EXTRACTIONWith Purchased seeds

SCANERIO IV: OIL EXTRACTIONWith Purchased seeds

CAPACITY: 34650 TON/YEAR SOLVENT EXTRACTION CAPACITY: 34650 TON/YEAR SOLVENT EXTRACTION

CAPITAL COST $450,000.00 CAPITAL COST $450,000.00





PRICE PRICE


Cake $42.00 Cake $42.00


SALES SALES


Cake $2,425,500.00 Cake $2,425,500.00


TOTAL $22,083,000.00 TOTAL $22,083,000.00

COGS COGS

Seeds $140.00 $13,475,000.00 Seeds $42.00 $4,042,500.00


Utility $311,850.00 Utility $311,850.00

H & S $346,500.00 H & S $346,500.00


TOTAL $14,722,400.00 TOTAL $5,289,900.00

Gross Profit $7,360,600.00 Gross Profit $16,793,100.00



PBT $7,275,100.00 PBT $16,707,600.00

Taxes 30.00% $2,182,530.00 Taxes 30.00% $5,012,280.00

NET PROFIT $5,092,570.00 NET PROFIT $11,695,320.00

[US$ ‘January, 2007]

For Detailed Financial Analysis Kindly Obtain Our JATROPHA OIL MAKING BUSINESS PLAN

For further enquiry kindly contact:

Director

Business Development, C J P

[email protected]

JATROPHA FARMING as a business


http://www.jatrophaworld.org/40.html

A unique business proposition to exploit the opportunity

Designing and implementing the growing of jatropha oil crops in a structured Agri-Supply chain provides excellent business opportunity.

Steps to start Crop-cultivation business

1. Identify land or decide for contract farming2. Conduct a feasibility study

3. Write a business plan

4. Form a farming company with experts

5. Solicit financing

6. Higher a Consultant

7. Develop the markets

8. Start cultivation of main crop (jatropha) and intercrop as planned

IMPLEMENTATION ROUTE

1. Crop cultivation 2. MIS & other Equipment requirements

3. Crop yield

4. System management

5. Cost benefits calculations

The inputs of Jatropha Farming are:

1. Land (field crops, hedges)

2. Labor (Crop plantation, Crop maintenance, harvesting, processing)

3. Machinery (tractor, Power tiller, digger etc.)

4. Material (Planting material, growing media)

Owning the land could bring a higher yield justified by an intensive cultivation, a strict control of the investments (i.e. fertilizing), and the personnel. On the other hand owning the land is reason of a quite bigger initial investment. As such leasing out the land on a minimum rent is only recommended

A detailed evaluation of the crop cultivation cost and following identification of a range of product selling price, from which it will be convenient to purchase the seeds, will help to determine the choice. If the farmer will judge the price so interesting to start to cultivate Jatropha, owning the land will be not necessary

This means it is possible for a farmer and farming company to have contract Production of Seeds. In such a relationship the farmer provides the land and the infrastructure to farm with whilst the farming company provides the rest. If the value of production exceeds the cost the surplus is shared at an agreed rate. A long term relationship is established and that risk is moved and accepted over a long period that the land must be leased for at leas a period of 20 years period.

The basic components of contract farming are:

1. The guaranteed offtake of the crop at a minimum price2. Providing the funds and the management disciplines for production

3. Entering into Contracts with Growers for this production

4. Accepting of the weather risk associated with farming.

OBTAIN JATROPHA FARMING BUSINESS PLAN

At CJP we are uniquely placed with our experience, our expertise and our capabilities to exploit the opportunities that the Jatropha Plantation economy presents and accordingly we have developed different Jatropha farming business plans covering all standard components of a business plan as below:-

Jatropha farming business plans for 20 ha.



Jatropha farming business plans for 5,000 ha.


JATROPHA OIL as a business


EXTRACTION OF OIL & VALUE ADDITION

STEPS TO START BIO-Oil BUSINESS

Enter into contract with growers for assured seeds supply if you’re not the producer Conduct a feasibility study- hire a consultant

Write a business plan

Form a enterprise with experts

Solicit financing

Hire a engineering discipline

Develop the markets

Install the plant and run the business

Value additions of by-products in form of bio-fertilizer and herbal soaps

INTRODUCTION STRATEGY

http://www.jatrophabiodiesel.org/business-with-oil.php%00%E5%A1%B9%EF%92%81%E1%B4%BB%E4%A1%BF%E2%B2%AF%E5%B6%82%E8%97%84%E6%8C%A7%00%00%EA%AE%A5

In the feasibility study of the oil making plant the following issues become crucial:

Seeds availability Legislation frame work

SEEDS AVAILABILITY

The extraction unit capacity is based on the amount of seed feedstock introduced into it. In order to supply the plant a considerable quantity of seeds is necessary to assure this throughput. It needs a strict collaboration between the processing plant and the farmers supplying the raw materials.. The co-operation between these two entities should be in the form of reciprocal support.

IMPLEMENTATION ROUTE

In order to identify the critical size of the plant, in terms of seeds throughput, the following steps have been conducted:

1. Formulation of input cost assumptions related to the main process phases2. Evaluation of possible revenues based on a potential market assessment

3. Cost/benefits analysis

4. Sensitivity analysis

MAIN PROCESS PHASES:

1. Seeds purchasing or seeds production2. Seeds handling and storage

3. Oil pressing

4. Oil refining

5. Oil distribution

We have formulated a complete business plan for jatropha oil making and value additions which can be had from us

JATROPHA BIODIESEL BUSINESS PLAN


Centre for Jatropha promotion & biodiesel (CJP) has been working in the field of jatrophapromotion for biodiesel production and become a pioneer of Physic nut Plantation &Production. CJP’s research findings and on-hand field experiences in respect of various technical, agronomical/silvicultural aspects of plantations of jatropha in various categories of land as well under different plantation models have resulted in significant improvements in knowledge and technical background related to Productivity, profitability and sustainability of commercial production of jatropha oil crop. Based on our proprietary knowledge and extensive experience gained we have developed Based on our proprietary knowledge and extensive experience gained we have developedand enhanced a wide range of Products for creating a “FALESAFE JATROPHA FUEL FARM”

Following steps are required to be taken in order to create FAILSAFE ENERGY FARM after ascertaining land availability

Feasibility study Report Formation of Business Plan

Appointment of Consultant

Farm Designing

Sourcing of elite planting stock

Execution of Plantation

Crop care

STEPS TO START BIODIESEL BUSINESS

1. Conduct a feasibility study – hire a consultant2. Write a business plan

3. Form a board of business experts

4. Solicit financing

5. Hire a engineering company

6. Develop the markets

7. Built the plant and the business

IMPORTANT BUSINESS FACTOR

1. Feedstock supply2. Market size

3. Govt. polices & incentives

4. Competition

5. Financing & fund sources

6. Business structure & community involvement

7. Sensitivity analysis

8. Plant & operating cost

To start Jatropha Biodiesel Business, You need a perfect plan to know important factors. Your success shall be well written in there. Business plans can be consuming in terms of time and money. The preparation of Business plan needs expertise, a better understanding of how to prepare, analyze and interpret financial statements. This may seem like a complicated time consuming task.

OBTAIN JATROPHA BIODIESEL BUSINESS PLAN

Therefore, just save to your time and money, make the task easy and provide you with the necessary tools to more effectively analyze financial statements and make informed business decisions we have formulated various Jatropha Biodiesel farming business plans from farming to fuel based on our extensive experience, research and knowledge.

The business plan should identify production costs, as well as operating costs, including equipment, land, construction permitting, labor, inputs and financing, utilities, and financial projections. With Biodiesel projects, projections should contain some contingency analysis projections that both include and exclude anticipated federal and state programs A business plan is usually made up of the following section:

We have formulated a complete jatropha biodiesel business plan consisting following standard sections

1. Business Request Page2. Table of Contents

3. Executive Summary

4. Business Description

5. Management

6. Market Analysis

7. Marketing Plan

8. Product of Services

9. Manufacturing Plan

10. Financial Data

Supporting Documents