BIO DIESEL

Presented By: Saleem ul Qamar

Oil Economy
 Oil import constitutes a major part of our trade deficit and has an enormous impact on our economy and creation of new jobs  We spent annually more than 250,000 crores on import of petroleum  Some day we may be faced with an oil crisis that is not temporary; today oil field discovery and production is on the decline.  Developing a strong market for bio diesel would have tremendous economic benefits  Investments in biodiesel technology may ensure that we have transportation fuel options and we will not be so vulnerable

Diesel & Furnace Oil Consumption

B

Diesel & Furnace Oil Consumption:

Pakistan consumes around 8 million tons of diesel & 7.2 million tons of Around 9 million tons of diesel & furnace oil is imported and PSO alone imports 3.4 million tons of diesel & 4 million tons of furnace oil. If 10 % of the total diesel & furnace oil consumed by Pakistan (i.e. 0.80 million tons of diesel & 0.72 million tons of furnace oil ) is switched to blended fuel the countrys import bill can decline by ~ US $ 1.00 Billion

Why Bio Fuels?

 SECURITY OF SUPPLY  SUSTAINABILITY  REDUCTION OF GREEN HOUSE GAS EMISSIONS  REGIONAL (RURAL) DEVELOPMENT  SOCIAL STRUCTURE & AGRICULTURE

Bio Diesel
Made by chemically combining any natural oil or fat with an alcohol Most European Countries, North America and Canada have active Biodiesel programmes France currently the largest producer USA produced 30 million gallons in 2004.

Product - Biodiesel
An easily produced multi-market product Environmentally and socially correct As a fuel, substitutes for petroleum diesel with no mechanical modifications to engines As an additive, replaces the sulphur now mandated for removal from petro-diesel Can be manufactured from over 350 oil producing agro-crops worldwide as well as used cooking oils Biodiesel and it s byproducts are completely biodegradable and non-toxic

IMPORTANCE OF BIODIESEL
Environment friendly Clean burning Renewable fuel No engine modification Increase in engine life Biodegradable and non-toxic Easy to handle and store

Benefits of biodiesel
B

Economic Saving of precious Foreign Exchange. Poverty alleviation by providing approx. 150,000 jobs. National Security

Reduces Dependence on Imported Oil. Sustainable, Renewable Resource grown domestically.

Approx. 80% less carbon dioxide emissions. Almost 100% less sulphur dioxide. Over 90% reduction in total unburned hydrocarbons. Approx. 75-90% reduction in aromatic hydrocarbons. Significant reduction in particulates & carbon monoxide.

Environmental

Mechanical

Provides superior lubricating properties.

Pakistan State Oil

Biodiesel Benefits
Increased Farm Land utilization Reduced Petroleum Dependence Improved Air Quality New agriculture market Growing Fuel Increases Nation s Wealth

BIODIESEL IS REALITY NOW

Large number of surveys completed Variety of feed stocks tested Transesterification developed on commercial scale Approval by most auto OEM s Tax benefit structure in place in several countries Future projections firmed and growing Legislations in place in many countries

INDIA / OTHER ASIAN COUNTRIES HAVE TROPICAL CLIMATE ADVANTAGE ENORMOUS UNDER-UTILIZED LANDS & LOW COST LABOUR READY LOCAL MARKETS PLUS USA AND EUROPE BIODIESEL IN INDIA/ ASIA CAN BE A SUCCESS STORY

Wide Acceptance
 By diesel vehicle industry

AudiBMW Case Claas Deutz Iseki John Deere Kubota Massey-Ferguson Mercedes-Benz Nissan Puegot Renault Same Seat Skoda Steyr Valmet Volkswagen Volvo
 By the fuel trade; e.g, Texaco, Shell, Total, PSO  By the end-user bus companies, taxi fleets, forestry enterprises, boat owners  More than 100 production sites (capacity 500-120,000 tons/annum)

BIODIESEL / DIESEL DATA

PROPERTIES Diesel IS 1460 Specification 820 to 870 Max. 0.3 Max. 0.01 Max. 0.25 Min. 48 Min. 35 Max. 1 2.0 to 5.0 Max. 0.2 N/A N/A Max. 6(W) 3 0C NA Biodiesel ASTM 6751 Specification NA Max 0.05 Max 0.020 Max 0.05 Min 47 Min 100 No. 3b max 1.9-6.0 Max 0.8 Max 0.02 Max 0.24 NA NA 0.01 Proposed BIS Specifications (B100) 860-900 Max 0.05 Max 0.02 Max 0.005 Min 51 Min 120 Max 1 2.5-6.0 Max 0.50 Max 0.02 Max. 0.25 NA NA NA DATA B5 DATA B20 DATA (B100)

Density (g/cm3) Carbon Residue (100%) % mass Sulphated Ash , % mass Total Sulfur, % mass Cetane Number Flash Point,0C Copper Corrosion Viscosity, 40 0C(cSt) Neutralization Value (mg) Free Glycerin,% mass Total Glycerin,% mass CFPP, (0C) Pour Point deg C Water and sediments, (% mass)

834.2 0.04 0.002 0.02 50.4 39.5 1 2.497 0.1 NA NA 0.0 -6 0.05

854.7 0.01 0.002 0.04 54.6 77 1 3.25 0.2 NIL 0.05 -1 -3 0.04

885.7 0.01 0.001 NIL 56.6 103 1 4.10 0.04 0.01 0.22 0.0 NA <0.01

LIFE CYCLE EMISSIONS

 Biodiesel generates 573.96 g/bhp-h compared to 548.02 g/bhp-h for petroleum diesel  The higher CO2 levels result from more complete combustion  The overall life cycle emissions are 78.45% lower for biodiesel; direct result of carbon cycling by the soybean plants

CO2

STORAGE, HANDLING

Standard Handling And Storage Practice As With Petroleum Diesel

Comparative Economic Study

Price of Processing T otal C ost Feedstock C ost of biodiesel in $/M T in $/M T in $/M T 1 2 3 =(1 +2 ) USA Soybean Oil 560 500 1,060 Europe Rapeseed Oil 590 500 1,090 Sunflower Oil 565 500 1,065 India Jatropha Oil 770 250 1,020
Country Diesel Price Duty on net of duty Diesel
$/MT 517 369 410 $/MT 588 166 250

C ountry

Feedstock for Biodiesel

Diesel Price
$/MT 1,104 535 660

Total cost Subsidy given of biodiesel on biodiesel

$/MT 1,065 1,060 1,020 $/MT 607 540

Germany USA India

BIODIESEL vs OTHER ALTERNATE FUELS

DIESEL CNG LNG METHANOL ETHANOL BIODIESEL ___________________________________________________________________________ Vehicle cost 10 5 5 5 5 10 Infrastructure 10 2 5 5 5 10 Safety 7 4 3 1 3 8 Operating range 10 5 10 10 10 10 Operating cost 10 5 7 5 5 7 Reliability 10 7 5 3 3 10 Customer acceptance 5 8 8 8 9 8 Funding assistance 1 10 2 0 2 2 Training cost 10 5 5 5 5 10 Fuel availability 10 10 5 5 5 6 Fuel quality 9 5 10 8 8 9 Fuel price stability 6 8 8 6 6 6 TOTAL 98 74 73 61 66 96 __

PROMOTION of Bio-diesel..

Europe
1. EU announces total exemption (reduction) of tax on pure & low blended bio fuels for at least 6 years w.e.f. 01.01.2004 extendable for another 6 years. Effective Reduction in duty in Germany 587 $/MT 2. Adoption of Directive 2003/30/EC of The European Parliament And of The Council of 8th May 2003 promotion of the use of bio fuels for transport.

United States
"Consumers and businesses need reliable supplies of energy to make our economy run so I urge you to pass legislation to modernize our electricity system, promote conservation, and make America less dependent on foreign sources of energy." -Mr.George W.Bush

United States
A biodiesel tax incentive was included in the Final Energy Bill. 1 cent per % point of biodiesel blended with petroleum diesel.

Europe
 EU Finance Minister adopted a political agreement to allow Governments to exempt transport bio fuels,such as biodiesel,from Excise Duties applied to Conventional Fuels.  EU target for bio fuels : At least 2% of total petrol & diesel within transport sector by 2005, to increase by 0.75% each year thereafter to reach 5.75% by 2010.  EU announces exemption of Tax on pure & low Bio fuels for at least 6 years w.e.f. 01.01.2004

Germany
 A total exemption from the Excise Duty on Mineral Oil for pure & blended Bio fuels w.e.f. January 2004 up to 31st December 2009,which is based on % of Bio fuels included in Final blend. Higher the proportion,greater the reduction.  No excise tax for biodiesel substituting standard fuels,either unblended or blended with fossil diesel in the vehicle tank.  The 2003 Budget Bill allows for a complete exemption of Excise Duties of up to 409 Euro / Kl on all fuels derived from bio mass including Biodiesel.  Tax incentive for VOME (470 Euro/M3) includes Carbon tax incentive & only applies to pure VOME.

Tax Incentive $ 607/ MT

France
 Biodiesel to substitute 5% of Diesel fuel by 2005.  Excise Taxes on Petroleum products do not apply to Bio fuels.  Tax incentive adopted for VOME mixed with diesel within allotted quota, 320,000 MT/year for Biodiesel.

Tax Incentive $ 490/ MT

Austria
 The Austrian Law on Tax Reforms 2000 exempts the use of pure Bio diesel & the blending of it .  100 % tax exemption on pure Biodiesel  100% tax exemption if up to 2% biodiesel is blended with diesel fuel.  Currently a tax incentive of 290 Euro/M3 applies to pure VOME used in motor fuel blends up to 2%.

Tax Incentive $ 431/ MT

United Kingdom
 UK Government has EU targets to replace 2% fossil fuels by renewable fuels by 2005, to reach 5% by 2010.  UK Government offered 20 pence per litre duty incentive for Biodiesel on January 1,2003.  UK is authorized to apply a differentiated rate of Excise Duty to fuels containing Biodiesel

Tax Incentive $ 205/ MT

Summary of Support /subsidy EU

Country Diesel Price Duty on Diesel Total cost Subsidy given net of duty Diesel Price of biodiesel on biodiesel
$/MT 584 581 541 517 591 502 627 536 544 718 385 $/MT 353 433 486 588 306 525 504 374 366 435 1,060 $/MT 936 1,014 1,027 1,104 897 1,027 1,130 910 910 1,153 1,445 $/MT 1,090 1,090 1,090 1,065 1,090 1,065 1,065 1,065 1,065 1,090 1,090 $/MT 431 625 490 607 Not Known Not Known 598 374 579 511 205

Austria Finland France Germany Greece Ireland Italy Portugal Spain Sweden U.K.

BIODIESEL FROM JATROPHA

1 MILLION HECATRES OF WASTE LAND IS BROUGHT UNDER JATROPHA CULTIVATION Can yield 0.8-1 million tons of oil For 66.9 MMT diesel (Projected 2011-12) 13 MMT bio diesel for 20% blend 11 MH land required 11 million jobs

Issues of Seed / Oil Allocation

Investors perspective  Legislated for seed / oil allocation  Price  Policy on contract farming  Feasibility / project report  Covering all aspects of farming including yield guarantees. Farmers perspective  Seed quality/ certification  No certification available for non-edible oil seeds  Management practices for Jatropha cultivation  Crop behavior  Holding pattern 11 million hectares 1crore farmers assuming 3,000 / hectare loan 3,000 crore required by farmers

Jatropha PHOTO GALLERY

Jatropha Elite Seedlings

Jatropha Nursery

Jatropha Plantation

Jatropha Tree

Jatropha Fruits

Jatropha Fruits

Jatropha Seeds

THANKS FOR ATTENTION