India prepares for biodiesel growth

20 July 2007 23:33  [Source: ICIS news]

By Doris de Guzman

NEW YORK (ICIS News)--Recent investments in jatropha oilseed in India are an indication of the country’s potential growth in the biodiesel industry, a source said on Friday.

Delhi-based IndianOil recently applied to the state government of Madhya Pradesh for the lease of 30,000 ha (12,150 acres) of wasteland to start a jatropha plantation.

In addition, D1 Oils and BP formed a joint venture, D1-BP Fuel Crops, which will undertake 1m ha of jatropha planting in India and the world.

D1 Oils currently has jatropha farming contracts in India covering a total of 56,800 ha, while BP is cultivating 8,000 ha, mostly for R&D.

“India has vast potential for production as well as consumption of biodiesel,” said IOC representative Kali Krishna. “Availability will improve as more players enter the field.”

Commercial biodiesel production in India is nil, said Krishna, because of high edible oil prices. The inedible oil of jatropha is expected to make biodiesel production more economical.

“Large-scale plantation of bio-crops such as jatropha will not only contribute in improving the nation’s energy security but will also generate employment for rural masses and reduce environment pollution,” said Krishna.

The US Department of Agriculture’s Foreign Agricultural Service estimated that current Indian biodiesel capacity is 200-500 short ton/year.

“Local and foreign collaborations for biodiesel production are coming in some states, which could boost India’s capacity to 1m tons/year in the next 2-3 years,” the service reported.

Look for the Indian biofuel story in the 23 July 2007 issue of ICIS Chemical Business.

By: Doris de Guzman
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