Jatropha Plantation Final Ppt q6m2s

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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

Projected demand for petrol & diesel, and biofuels requirements (India)

Year 20062007 20112012 20162017

Ethanol blending requirement Biodiesel blending requirement (in metric tons) (in metric tons) Petrol Diesel demand @ 5 per @ 10 per @ 20 per demand @ 5 per @ 10 per @ 20 per cent cent cent Mt Mt cent cent cent

10.07

0.5

1.01

2.01

52.32

2.62

5.23

10.46

12.85

0.64

1.29

2.57

66.91

3.35

6.69

13.38

16.4

0.82

1.64

3.28

83.58

4.18

8.36

16.72

Biodiesel

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 is made from virgin or used vegetable oils (both edible & nonedible) 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 3

Biodiesel: Advantages and Comparison with Diesel Usage

Energy Independence Reducing Trade Deficit

Economic Growth

Cleaner Air

Less Global Warming

• Can be used in any existing, unmodified diesel engine Fuel Property • 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) Fuel Standard • Extends the live of diesel engines Fuel composition • With the rising costs of oil, for a majority of countries depending on the Lower Heating Value (Btu/gal) import of oil, it has now become a matter of ‘when’ instead of ‘if’ Kin. Viscosity, @ 40 8C • Reducing the oil imports will help us reduce our imports cost. This Specific Gravity kg/l @ 60 8F money can be used towards other important initiatives like health, Density, lb/gal @ 15 8C education and other services in our country Water, ppm by wt. • At the community level, farmers that produce dedicated energy crops can grow their incomes and grow their own supply of affordable and Carbon (wt.%) Hydrogen (wt.%) reliable energy • At the national level, biofuels will generate new industries, new Oxygen, by dif. wt.% technologies, new jobs and new markets Sulfur (wt.%) • Produce fewer emissions of carbon monoxide, particulates, and toxic Boiling Point (8C) chemicals that cause smog, aggravate respiratory and heart disease Flash Point (8C) • Produces 80% less carbon dioxide and 100% less sulphur dioxide Cloud Point (8C) emissions. It provides a 90% reduction in cancer risks Pour Point (8C) • Biofuels contain carbon that was taken out of the atmosphere by plants Cetane Number and trees as they grew. Studies show that biodiesel reduces CO2 Stoichiometric Air/Fuel Ratio emissions to a considerable extent and in some cases all most nearly to (w/w) zero BOCLE Scuff (g) • Biodiesel is also biodegradable

Diesel

Biodiesel

ASTM D975 ASTM PS 121

1,31,295

C12-C22 FAME 1,17,093

1.3–4.1

1.9–6.0

0.85

0.88

7.079

7.328

161

0.05% max

87

77

13

12

0

11

.05 max

0.0 - 0.0024

188-343

182-338

60-80

100-170

-15 to 5

-3 to 12

-35 to -15

-15 to 10

40-55

48-65

15

13.8

C10-C21 HC

3,600

>7,000 4

Biodiesel: Sources Vegetable Oils

Percentage Oil in Non-Edible Oil Seeds

• Soybeans, Rapeseed, Ground Nut, Sunflower, Coconut, Cotton Seed, Sorghum, Barley, Rice, Oat, etc

Species Non-edible Oil

Animal Fats

Other Sources

• Almond, Andiroba, Camelina, Cumaro, Jojoba Oil, Jatropha curcas, Mahua, Karanja, Castor, Palm, Rubber, Sesame, etc.

• Lard, Tallow, Poultry Fat, Fish Oil

• Bacteria, Algae, Fungi, Micro Algae, Tarpenes, Latexes, Cooking Oil (Yellow Grease) etc 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, 9001,200 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

Oil Fraction %

Castor

40-50

Jatropha

50-60

Karanja

30-40

Mahua

35-40

Linseed

35-45

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

*Reasons for choosing Jatropha

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 5

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

Land Type Under stocked forests Protective hedge around agricultural fields Agro- forestry Fallow Lands Land related programmes of Ministry of Rural Development Public lands -railway tracks, roads, canals, etc TOTAL

Area Potential for Jatropha (Mha) Plantation (Mha) 31.0 142.0 11.45 24.0

197.0

3.0 3.0 2.0 2.4 2.0 1.0 13.4

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 6

Biodiesel: Suggested Jatropha Based Value Chain Step 1: Cultivation of Jatropha

Cultivation Nursery

Farming Models

• 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 predecided price for the seeds or just with the understanding that the company will purchase the seeds at the prevailing market price

Biodiesel processing plant Govt/Private

Biofuel Board

Seedlings

• 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

Marketing

Processing

Private Traders

Oil Extraction

Intermediaries

Beneficiaries

By Product: Oil cake

Straight Vegetable Oil Plantation By Product: Glycerol Transesterification

Owned wasteland

Community wasteland

Forest Land

Harvesting and hulling of fruits

DRDO

Seeds

Railways

Biodiesel

Distributors

By-products: Leaves, latex, wood Transport companies Home Consumption Oil marketing Companies

7 Local use in fuel etc.

Biodiesel: Suggested Jatropha Based Value Chain Step 2: Collection of Seeds

Cultivation Nursery

• 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

Biodiesel processing plant Govt/Private

Biofuel Board

Seedlings

Seed Marketing

Marketing

Processing

Private Traders

Oil Extraction

Intermediaries

Beneficiaries

By Product: Oil cake

Straight Vegetable Oil Plantation By Product: Glycerol Transesterification

Owned wasteland

Community wasteland

Forest Land

Harvesting and hulling of fruits

DRDO

Seeds

Railways

Biodiesel

Distributors

By-products: Leaves, latex, wood Transport companies Home Consumption Oil marketing Companies

Local use in fuel etc.

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Biodiesel: Suggested Jatropha Based Value Chain Step 3: Seed Processing and Biodiesel Production

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 9

Biodiesel: Suggested Jatropha Based Value Chain 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

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Farmers’ view on Jatropha Plantation Drivers for Jatropha Plantation

Barriers for Jatropha Plantation

Future income possibilities

• Expectations on future economic yield and incomes from Jatropha plantations

Economic

• No or insufficient income from the plantation, Problem to acquire labour at a reasonable price

Survives without maintenance

• The plantations have survived without maintenance and are even yielding in some cases

Ecological

• Plantations affected by pests or diseases, No or insufficient yield

Knowledge

• Insufficient knowledge of plantation maintenance and usage of Jatropha, Lack of interest for continuation of cultivation

Effect on other plants

• Positive effects on other plants when intercropping

Demonstration

• Demonstration of the performance of Jatropha

Implementation

• Promises made by initiators or other actors in the initial stages of plantation have not been kept 11

How Mahindra can Help the Farmers… Crop Care: Mahindra can provide insecticides, fungicides, herbicides, nutrients and plant growth promoters to contribute to better harvests

MahindraShubhLabh Services 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 MahindraInsurance & Rural Housing Finance

Farmers

MahindraFinancial Services

MahindraFarm Equipment Division

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

Financials of setting up a Biodiesel Production Plant Initial outlay Estimated cost of setting up 10 tonne per 8-10crore day plant

This includes installation and commissioning of: • • • • • • •

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

COST OF PRODUCTION OF BIODIESEL INPUTS Jatropha seeds Unskilled labor Managerial labor istrative labor Chemicals Used Methanol sodium hydroxide Electricity Interest on Fixed capital Depreciation on machinery Depreciation on other assets Freight and other incidentals Total cost (A) Revenue from byproducts Glycerol Oil cake Total Revenue(B) Net cost incurred (A)-(B) Recovery of biodiesel/tonne of jatropha seeds Net cost/Kg of biodiesel

QUANTITY VALUE(Rs) 65000 10 tonnes/day 720 6 human days 600 1 human day 1600 4 human days 600 litres 21 Kg 250 Units at 10% at 10% at 4%

6600 540 2500 6800 1700 2740 6500 95300

467 Kg 6750 Kg

10274 33750 44024 51276

273 Kg

18.78 13

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’ 14

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/s/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 16