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Agenda
Introduction
to Bio-fuels
Biodiesel
Manufacturing
biodiesel using
Jatropha Oil
Suggested
Jatropha
Based Value
Chain
Farmers View
on Jatropha
Plantation
Financials Conclusion
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Bio-fuel- A Ray of Hope
Bio-Fuel
Oil provides energy to 95% transportation and continues to
grow.
Biofuels are renewable liquid fuels coming from biological
raw material and have been proved to be good substitutes
for oil in the transportation sector.
Types of Bio-Fuel: Ethanol and Biodiesel
Solution to many problems: environmental problems,
energy security, reducing imports, rural employment and
improving agricultural economy


Ethanol
Raw material used for producing ethanol varies from sugar, cereals,
sugar beet to molasses in India
Brazil: ethanol as 100 % fuel in about 20 per cent of vehicles, 25% blend
with gasoline in the rest of the vehicles
USA and Australia use 10 % ethanol-gasoline blends whereas in Sweden
5% blend is used
India: Use of 5% ethanol- gasoline blend is already approved by BIS and
is in progressive state of implementation in the country.
Three classes of vegetative sources (raw materials) can be used:
starch as grain, corn and tubers like cassava
sugar plants (sugar beet or sugar cane)
cellulose plants (general tree and biomass)

Biodiesel
Biodiesel is made from virgin or used vegetable oils (both edible & non-
edible) and animal fats through trans-esterification
Use of biodiesel results in substantial reduction of un-burnt hydrocarbons,
carbon monoxide and particulate matters
It has almost no sulphur, no aromatics and has about 10 % built in oxygen,
which helps it to burn fully. Its higher cetane number improves the
combustion
Raw materials: Sunflower and rapeseed in Europe, soyabean in USA, palm
oil in Thailand, Frying oil and Animal fats in Ireland
India: It is proposed to use non-edible oil for making biodiesel
Projected demand for petrol & diesel, and biofuels requirements (India)
Year
Petrol
demand
Mt
Ethanol blending requirement
(in metric tons)
Diesel
demand
Mt
Biodiesel blending requirement
(in metric tons)
@ 5 per
cent
@ 10 per
cent
@ 20 per
cent
@ 5 per
cent
@ 10 per
cent
@ 20 per
cent
2006-
2007
10.07 0.5 1.01 2.01 52.32 2.62 5.23 10.46
2011-
2012
12.85 0.64 1.29 2.57 66.91 3.35 6.69 13.38
2016-
2017
16.4 0.82 1.64 3.28 83.58 4.18 8.36 16.72
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Biodiesel: Advantages and Comparison with Diesel
Usage
Can be used in any existing, unmodified diesel engine
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)
Extends the live of diesel engines
Energy
Independence
With the rising costs of oil, for a majority of countries depending on the
import of oil, it has now become a matter of when instead of if
Reducing Trade
Deficit
Reducing the oil imports will help us reduce our imports cost. This
money can be used towards other important initiatives like health,
education and other services in our country
Economic
Growth
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, biofuels will generate new industries, new
technologies, new jobs and new markets
Cleaner Air
Produce fewer emissions of carbon monoxide, particulates, and toxic
chemicals that cause smog, aggravate respiratory and heart disease
Produces 80% less carbon dioxide and 100% less sulphur dioxide
emissions. It provides a 90% reduction in cancer risks
Less Global
Warming
Biofuels contain carbon that was taken out of the atmosphere by plants
and trees as they grew. Studies show that biodiesel reduces CO2
emissions to a considerable extent and in some cases all most nearly to
zero
Biodiesel is also biodegradable
Fuel Property Diesel Biodiesel
Fuel Standard
ASTM D975 ASTM PS 121
Fuel composition
C10-C21 HC
C12-C22
FAME
Lower Heating Value (Btu/gal)
1,31,295 1,17,093
Kin. Viscosity, @ 40 8C
1.34.1 1.96.0
Specific Gravity kg/l @ 60 8F
0.85 0.88
Density, lb/gal @ 15 8C
7.079 7.328
Water, ppm by wt.
161 0.05% max
Carbon (wt.%)
87 77
Hydrogen (wt.%)
13 12
Oxygen, by dif. wt.%
0 11
Sulfur (wt.%)
.05 max 0.0 - 0.0024
Boiling Point (8C)
188-343 182-338
Flash Point (8C)
60-80 100-170
Cloud Point (8C)
-15 to 5 -3 to 12
Pour Point (8C)
-35 to -15 -15 to 10
Cetane Number
40-55 48-65
Stoichiometric Air/Fuel Ratio
(w/w)
15 13.8
BOCLE Scuff (g)
3,600 >7,000
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Biodiesel: Sources
Vegetable Oils
Soybeans, Rapeseed, Ground Nut, Sunflower, Coconut, Cotton
Seed, Sorghum, Barley, Rice, Oat, etc
Non-edible Oil
Almond, Andiroba, Camelina, Cumaro, Jojoba Oil, Jatropha
curcas, Mahua, Karanja, Castor, Palm, Rubber, Sesame, etc.
Animal Fats Lard, Tallow, Poultry Fat, Fish Oil
Other Sources
Bacteria, Algae, Fungi, Micro Algae, Tarpenes, Latexes,
Cooking Oil (Yellow Grease) etc
Percentage Oil in Non-Edible Oil Seeds
Species Oil Fraction %
Castor 40-50
Jatropha 50-60
Karanja 30-40
Mahua 35-40
Linseed 35-45
Castor
Castor seed is the source of castor oil, which
has a wide variety of uses. The seeds contain
between 40% and 50% oil that is rich in
triglycerides, mainly ricinolein
Castor is indigenous to the south-eastern
Mediterranean Basin, Eastern Africa, and India,
but is widespread throughout tropical regions
In arid and semi-arid regions the actual growing
season to first harvest is about 170 days


Karanja
Pongamia pinnata or karanja is a native of the
Western Ghats and is chiefly found along the
banks of streams and rivers or near the sea on
beaches and tidal forests
Grows in dry places, hardy tree that mines
water for its needs from 10 metre depths
without competing with other crops
From year-5, the plant is expected to give
economic yields and it may continue through
to its life of 100 years

Jatropha
Jatropha curcas plant shows promise for use
as an oil crop for biodiesel
It is non-edible and can grow in areas of low
rainfall (250 mm per year minimum, 900-
1,200 mm optimal) and is drought resistant
Valued for crop protection, prevents
wind/water erosion, is not browsed by
animals, will reach maximum productivity by
year three, and has a 50 year life-span

*Reasons for choosing Jatropha
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Biodiesel: Manufacturing using Jatropha Oil
In India, there is a presence of large junk of degraded forest land
and un-utilised public land, field boundaries and fallow lands of
farmers where non-edible oil-seeds can be grown.

Of the variety of non-edible oil producing species, based on
extensive scientific study, Jatropha curcas has been found to be very
suitable for biodiesel production




Advantages of Jatropha

The oil yield per hectare for Jatropha is among the highest for tree-borne oil seeds. The seed production ranges from
about 0.4 tons per hectare per year to over 12 t/ha. There are reports of oil yields as high as 50 per cent from the seed.
Typically, the seed production would be 3.75 t/ha, with an oil yield of 30-35 per cent, giving a net oil yield of about 1.2
t/ha
It can be grown in areas of low rainfall (200 mm per year), on low fertility, marginal, degraded, fallow and waste lands.
Canals, roads railway tracks, borders of farmers fields as a boundary fence/hedge in arid areas and even alkaline soils
are appropriate for the crop
Jatropha is easily established in nurseries, grows relatively quickly and is hardy
Jatropha seeds are easy to collect as they are ready to be plucked before the rainy season and as the plants are not very
tall
Jatropha is not browsed by animals
Being rich in nitrogen, the seed cake is an excellent source of plant nutrients
Land Type
Area
(Mha)
Potential for Jatropha
Plantation (Mha)
Under stocked forests 31.0 3.0
Protective hedge around agricultural fields 142.0 3.0
Agro- forestry 11.45 2.0
Fallow Lands 24.0 2.4
Land related programmes of Ministry of Rural
Development 2.0
Public lands -railway tracks, roads, canals, etc 1.0
TOTAL 197.0 13.4
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Biodiesel: Suggested Jatropha Based Value Chain
Farming Models
Estate Farming
In this mode, Mahindra can cultivate jatropha in
either their own land or community land leased-in
from the local panchayats. The company employs
the local villagers to cultivate the crop and the right
to harvest rests with either the company or is
shared with the panchayats

Contract Farming
In this mode, along with buy-back arrangement,
Mahindra can provide inputs, technical guidance
and other extension services to the farmers during
the initial years of establishment
The contracts can be reached either at a pre-
decided price for the seeds or just with the
understanding that the company will purchase the
seeds at the prevailing market price
Step 1: Cultivation of Jatropha
Biodiesel processing plant
Govt/Private
Nursery
Biofuel Board
Seedlings
Beneficiaries
Plantation
Owned
wasteland
Community
wasteland
Forest
Land
Harvesting and hulling of fruits
By-products: Leaves, latex, wood
Home Consumption
Intermediaries
Private Traders
Seeds
Oil Extraction
By Product: Oil cake
By Product: Glycerol
Transesterification
Biodiesel
Distributors
DRDO
Railways
Transport companies
Oil marketing Companies
Local use in fuel etc.


Cultivation Processing
Marketing
Straight Vegetable Oil
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Seed Marketing
The farm-produced jatropha seeds take different
routes to reach the processing plants. Mahindra can
collect the seeds from the following agents.
Mahindra corporate agents who will collect seeds
directly from the farmers in contract with us
Collect seeds from trees grown lands taken on lease
Local traders who collect the seeds from other
farmers not in our contract
Government agents who collect seeds on behalf of
Government Biofuel Boards
Step 2: Collection of Seeds
Biodiesel: Suggested Jatropha Based Value Chain
Biodiesel processing plant
Govt/Private
Nursery
Biofuel Board
Seedlings
Beneficiaries
Plantation
Owned
wasteland
Community
wasteland
Forest
Land
Harvesting and hulling of fruits
By-products: Leaves, latex, wood
Home Consumption
Intermediaries
Private Traders
Seeds
Oil Extraction
By Product: Oil cake
Straight Vegetable Oil
By Product: Glycerol
Transesterification
Biodiesel
Distributors
DRDO
Railways
Transport companies
Oil marketing Companies
Local use in fuel etc.


Cultivation Processing
Marketing
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Transesterification Process Requirements
The most economical process for biodiesel manufacture is transesterification of
Jatropha oil by an alcohol, usually methanol.
Common catalyst is an alkali such as potassium hydroxide
Methanol is preferred over ethanol because the costlier anhydrous ethanol is
required instead of the readily available 95 per cent ethanol


Step 3: Seed Processing and Biodiesel Production
Biodiesel: Suggested Jatropha Based Value Chain
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Step 4: Biodiesel Distribution
As of now, the consumers of biodiesel in the country
include Defence Research and Development
Organization (DRDO), some private companies, etc.
Public sector oil marketing companies (OMCs) like
Hindustan Petroleum (HP), Bharat Petroleum (BP), IOC
and ONGC are in the process of setting up an
extensive network of biofuel distribution chain
connecting various processing industries and retail
outlets across the country
Several state transport corporations like Andhra
Pradesh State Road Transport Corporation (APSRTC),
Navi Mumbai Municipal Transport Corporation
(NMMTC), Uttar Pradesh State Road Transport
Corporation (UPSRTC), Calcutta Tramways Company
Ltd, etc. have also started blending biodiesel with HSD
in their fleet of buses
The Indian Railways, have started using 5 per cent
blend of biodiesel in narrow gauge engines. A separate
body Indian Railways Organization for Alternate Fuels
(IROAF) instituted under the Indian Railways is
building networks with potential biodiesel suppliers
Biodiesel: Suggested Jatropha Based Value Chain
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Farmers view on Jatropha Plantation
Expectations on future economic yield
and incomes from Jatropha plantations
Future income
possibilities
The plantations have survived without
maintenance and are even yielding in
some cases
Survives without
maintenance
Positive effects on other plants when
intercropping
Effect on other
plants
Demonstration of the performance of
Jatropha
Demonstration
Drivers for Jatropha Plantation Barriers for Jatropha Plantation
No or insufficient income from the
plantation, Problem to acquire labour
at a reasonable price
Economic
Plantations affected by pests or
diseases, No or insufficient yield
Ecological
Insufficient knowledge of plantation
maintenance and usage of Jatropha,
Lack of interest for continuation of
cultivation
Knowledge
Promises made by initiators or other
actors in the initial stages of plantation
have not been kept
Implementation
Crop Care: Mahindra can provide insecticides, fungicides, herbicides, nutrients and
plant growth promoters to contribute to better harvests
Fresh produce services: Mahindra can effectively use this service in its contract
farming & engage with the farmers throughout the production cycle to
disseminate information on growing techniques
Seed Distribution: Mahindra can help the farmers by providing them
seeds/saplings of jatropha plant at a competitive rate
Financial service: Mahindra can provide special financial service to farmers for
purchasing agri-vehicles at less interest rates and increase its sales in the rural
areas. It can also provide finance to farmers for buying farm equipment for
cultivating jatropha
Insurance: It can increase the sales of insurance in the rural areas as people become
more aware of the benefits of the insurance plans & their income rises
How Mahindra can Help the Farmers
Farmers
Mahindra-
ShubhLabh
Services
Mahindra-
Farm
Equipment
Division
Mahindra-
Financial
Services
Mahindra-
Insurance &
Rural
Housing
Finance
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COST OF PRODUCTION OF BIODIESEL
INPUTS QUANTITY VALUE(Rs)
Jatropha seeds 10 tonnes/day 65000
Unskilled labor 6 human days 720
Managerial labor 1 human day 600
Administrative labor 4 human days 1600
Chemicals Used
Methanol 600 litres 6600
sodium hydroxide 21 Kg 540
Electricity 250 Units 2500
Interest on Fixed capital at 10% 6800
Depreciation on machinery at 10% 1700
Depreciation on other assets at 4% 2740
Freight and other incidentals 6500
Total cost (A) 95300
Revenue from byproducts
Glycerol 467 Kg 10274
Oil cake 6750 Kg 33750
Total Revenue(B) 44024
Net cost incurred (A)-(B) 51276
Recovery of biodiesel/tonne of jatropha seeds 273 Kg
Net cost/Kg of biodiesel 18.78
Initial outlay
Estimated cost of setting up 10 tonne per
day plant
8-10crore
This includes installation and commissioning of:

Trans esterification plant
esterification plant
Glycerin refining plant
Laboratory
Crude oil extraction
crude oil refining
Waste treatment plant

Financials of setting up a Biodiesel Production Plant
Govt. of India has already declared Biodiesel
Purchase Policy wherein any biodiesel producer can
supply biodiesel @ Rs.34/- per litre to public sector
petroleum companies.
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Conclusion
Producing biodiesel form non-edible oil is the solution to many problems: environmental problems, energy security, reducing
imports and improving agricultural economy
Investment in biodiesel is an investment in local communities. Biodiesel creates green-collar jobs.
A socially responsible Mahindra can enter the business of biodiesel production to make green fuel available for the automobile
industry in India
In this holistic approach, Mahindra can include farmers to setup a value chain around biodiesel production
Mahindra can also enhance its customer base by providing its services to the newly empowered farmers of jatropha plantation
This initiative will enable both the rural population and Mahindra to Rise
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References
http://www.energy-daily.com/reports/The_Current_Biofuel_Market_In_India_999.html
http://unctad.org/en/Docs/ditcted20066_en.pdf
http://planningcommission.nic.in/reports/genrep/cmtt_bio.pdf
http://www.demec.ufmg.br/disciplinas/eng032-BL/artigo.pdf
http://www.treeoilsindia.com/products.htm
http://www.pcra-biofuels.org/biodiesel.htm
http://www.svlele.com/indexb.htm
http://www.cbdacg.com/faq.htm
http://www.indianrailways.gov.in/railwayboard/uploads/tenders/pdf/Cori_1_IROAF_230310.pdf
http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Biofuels%20Annual_New%20Delhi_India_6-20-2012.pdf
http://www.fao.org/docrep/012/i1219e/i1219e.pdf
http://publications.lib.chalmers.se/records/fulltext/136377.pdf
http://ageconsearch.umn.edu/bitstream/96913/2/1-P-Shinoj.pdf
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Thank You