Biodiesel Potential in Pakistan

BIODIESEL

Biodiesel is a clean-burning alternative to petroleum diesel made from domestic, renewable resources such as vegetable oils, recycled cooking oil and animal fats.

Biodiesel is a renewable, environmentally friendly substitute for petro-diesel fuel.

It is produced from edible & non-edible oils, and animal fats.

Normally Biodiesel blends can be used in diesel engines without any alteration.

Biodiesel

SOURCES OF BIODIESEL

EDIBLE OIL SOURCES Sunflower

Soybean (USA)

Corn

Rapeseed

Others

NON-EDIBLE OIL SOURCES Pongamia (Sukh Chein)

Jojoba

Castor

Jatropha

Others

Pakistan State Oil Pakistan State Oil has been fuelling the needs of the

nation. Currently the Company is engaged in the marketing and

distribution of various POL products including Motor Gasoline (Mogas), High Speed Diesel (HSD), Furnace Oil (FO), Jet Fuel (JP-1), Kerosene, CNG, LPG, Petrochemicals

and Lubricants. PSO has the most wide-spread retail network in the country

with over 3,500 retail outlets and is also the major fuel supplier to aviation, railways, power projects, armed forces, marine and agriculture sectors.

FOCUS OF PSO

Non-edible plant seeds as feed stock Avoidance of competition with Food Crops Utilization of country’s ample Marginal

/Barren land Conserving agricultural Water Resources. Produce biodiesel at minimum possible cost

PSO’s ultimate goal is to significantly participate in blending 10% of Country’s total petro-diesel consumption (8 million tones) with biodiesel; in line with GoP’s directives.

OBJECTIVE

Total consumption of diesel per year: 8 M tons

10% of requirement (Biodiesel) per year: 800 K tons

Land requirement (800 shrubs / acre): 812500 Acres

SCOPE FOR BIODIESEL

How is it made?

Pakistan’s biodiesel Industry is still in its infancy. The government of Pakistan’s ‘Alternative Energy Development Board’ (AEDB) is very active in encouraging biodiesel utilization. The AEDB has worked on the sector’s development on its own as well as in collaboration with Pakistan State Oil, the largest producer of petroleum products.

In a similar fashion, Pakistan State Oil has also conducted successful trials of biodiesel production at its test farm and biodiesel plant.

The Pakistan Agricultural Research Council (PARC) has identified areas for suitable jatropha cultivation. There are no reports of large scale feedstock plantations or biodiesel production at this point in time, but the successful execution of a trial project by PSO and other stakeholders has laid the groundwork for the establishment of a larger industry in the near future.

Production and the choice of feedstock

The Pakistan government is planning to replace 5% of its yearly diesel consumption with biodiesel by 2015 and to raise the figure to10% by 2025

Remove the sales tax and petroleum level on biodiesel products to encourage the demand, thereby stimulating the growth in the biodiesel Industry.

Create and empower environmental groups to construct political support in favor of widespread adoption of alternative fuels.

Work in conjunction with the other state to create a more uniform distribution of biodiesel feedstock production

Future Prospectus

Ministry of Water & Power in coordination with AEDB shall be the apex coordinating and facilitating body for the National Bio-Diesel Programme.

Gradual introduction of bio-diesel fuel blends with petroleum diesel so as to achieve a minimum share of 5% by volume of the total Diesel consumption in the country by the year 2015 and 10% by 2025.

Oil Marketing Companies (OMCs) to purchase Bio-Diesel (B-100) from Bio-Diesel manufacturers; and sell this Bio-Diesel blended with Petroleum Diesel (starting with B-5) at their points of sale.

Ministry of Petroleum & Natural Resources shall come up with the fuel quality standards for B-100 and blends up to B-20.

Bio Diesel Policy Recommendations

All imported plant, machinery, equipment and specific items used in the production of Biodiesel shall be exempted from Customs Duty, Income Tax and Sales Tax.

Pilot project would be scaled up after success.

Promote productive use of energy for income generation activities.

The governments of Pakistan recommended to create a national biodiesel mission that oversees the development of this industry.

Pakistan should increase the environmental awareness by creating groups that articulate environmental concerns in the existing political framework.

The governments should provide a tax incentive to biodiesel consumers. The fuel tax should be exempted for biodiesel.

Pakistan should plan and cultivate large scale plantations of jojoba a biodiesel crop that is resistant to drought and excessively high temperatures. This would reduce the risks associated with innovation and would create agricultural jobs in rural areas.

Key Conclusions

Thank You

Mohsin Muhammad