Review of literature- Major scientific field of interest:

Fatty acid methyl esters Scenario in India Background

India, a fast growing economy facing the challenge of meeting a rapidly increasing
demand for energy, ranks sixth in the world in terms of energy demand. Its economy is
projected to grow 7-8 percent over the next two decades and there will be a substantial increase
in demand for oil to manage transportation and to meet various other energy needs (7). While
India has significant reserves of coal, it is relatively poor in oil and gas resources. Due to
stagnating domestic crude production, India imports approximately 72 percent of its petroleum
requirement. (24)

The global annual requirement of petroleum products is approx. 17,000 MMT, out of
which estimated Indian requirement is 120 MMT. Our domestic production of crude oil and
(13)
natural gas will remain around 34 million tones during 2006-07. The huge gap between
demand and supply may be met only by import. The net import burden was increased from
$22.6 billion. (Rs. 1,01,963 crores) in 2004-2005 to $ 34.1 billion (Rs. 1,50,557 crores) in 2005-
06 and taking into account, the average prices till now during the current year, the net import bill
for 2006-07 could be of the order of $43.3 billion (Rs. 1,90,000 crores). The increasing trends
show one and half times increase annually and if the present increasing trend continues, it would
(27)
be a matter of very serious concern for the country. If the corrective measurers are not taken
in time, the India‟s maximum revenue will drain out in the import of petroleum products.

Fatty acid methyl esters are renewable source of energy derived from biological raw
material. Two sources of bio-fuels-ethanol and bio-diesel are gaining worldwide acceptance as
on of the solutions for problems of environmental degradation, energy security, restricting
imports, rural employment, agricultural economy, owing to reduced dependence on oil import;
savings in foreign exchange and reduced vehicular pollution. Two major bio-fuels for the
transport sector, bio-ethanol and bio-diesel, are becoming popular in many countries across the
world. (11)
Fatty acid methyl esters

Fatty acid methyl esters is an environment friendly fuel, which has almost no sulphur, no
aromatics and has about 10% built-in oxygen. It is fatty acid ethyl or methyl ester. Fatty acid
methyl esters needs no separate infrastructure for storage, dispensing and the existing tankage
and dispensing stations of conventional diesel can be used. Fatty acid methyl esters is safe to
handle and the flash points of Fatty acid methyl esters are higher than conventional diesel.
Blending of Fatty acid methyl esters with diesel would result in the reduction of un-burnt
hydrocarbons. (25) Carbon Monoxide and particulate matter in auto emissions, and will be in line
with the objectives of the Auto Fuel Policy of the Government of India. Fatty acid methyl esters
use has been showing and Australia has fairly large programs. However, now bio-diesel has also
caught the serious attention of USA, Canada, Malaysia, Indonesia, India, Thailand, Philippines,
Ghana, South Africa, China, Zambia and many other countries. (2)

Fatty acid methyl esters is made virgin or used vegetable oils (both edible and non-edible)
and animal fats. Fatty acid methyl esters operates in compression ignition engines like petro-
diesel. Fatty acid methyl esters can be blended in any ratio with petroleum diesel fuels. It can be
stored just like the petroleum diesel fuel and hence does not require separate infrastructure. (29)
It has various advantages as explained below. It can be produced from various sources including
Tree Borne Oilseeds like Jatropha, Karanja, Jojoba, Neem etc.

National Fatty acid methyl esters policy

National Fatty acid methyl esters Policy is under formulation in the Ministry of New and
Renewable Energy (MNRE). The draft policy envisages utilization of a wide range of bio-crops
such as sugarcane, sweet sorghum, cassava, maize and tree borne oilseeds like Jatropha, Karanja
etc. for production of bio-fuels. The draft Policy also envisages setting up of „National Bio-fuels
Development Board‟ to develop a road map for use of bio-fuels in petrol and diesel engines in a
(26)
time bound manner besides taking appropriate policy measures. The National indicative
target of 55 blending by 2012 and 10% by 2017 has also been envisaged in the Draft Policy.

Advantage of Fatty acid methyl esters : Apart from energy security, employment generation,
economic gain, social security, bio-fuels have enormous environmental benefits being superior in
many aspects than conventional source of energy i.e. petrol and diesel. A worldwide study that
included India reveals the superiority of the Fatty acid methyl esters over conventional fuels on
many aspects enumerated as below: (17)

Fatty acid methyl esters

1. Particulate Matters (PM) emissions are 30% lower than diesel

2. Hydro-carbon exhaust emissions are 93% lower than diesel
3. Nitrogen oxide (NOx) emissions can be effectively managed and efficiently
eliminated from Fatty acid methyl esters.
4. Fatty acid methyl esters reduces the health risk associated with diesel by release of
decreased levels of polycyclic aromatic hydrocarbon (PAH) and nitrate PAH
compounds by 75 to 80%.
5. The overall ozone (smog) forming hydrocarbon emissions 50% less than that of diesel
fuel.
6. Carbon monoxide exhaust emissions are 50% lower than diesel.
7. Carbon dioxide emissions reduces by 78% compared to petroleum diesel.
8. Reduces overall exhaust emissions, bio-degradable and non-toxic
9. Fuel consumption comparable to diesel
10. Higher flesh point
11. Clean burning and renewable fuel
12. Indigenously produced fuel.
13. Fatty acid methyl esters is non toxic & environmental friendly as it produces
substantially less carbon monoxide and 100% less sulfur dioxide emissions with no
unburnt hydrocarbons and thus it is ideal fuel for heavily polluted cities. Biodiesel
reduces serious air pollutants such as particulates and air toxicity.
14. Fatty acid methyl esters can be used alone or mixed in any ratio with conventional
diesel. The preferred ratio of mixture ranges between 5 and 20%
15. Fatty acid methyl esters extends the life of diesel engines.
16. Fatty acid methyl esters could be cheaper than conventional diesel.
17. Fatty acid methyl esters has good potential for rural employment generation.
Initiatives of government of India
Development of Fatty acid methyl esters

A National Fatty acid methyl esters Mission is being launched by the Planning
Commission to cover 25 lakh ha. Area in the country, which will meet 5% replacement of the
diesel requirement of the country. The MPNG has launched Fatty acid methyl esters procurement
policy w.e.f. 01.01.2006 @ Rs. 25 per litre through state-owned petroleum companies in 12
states. (38) However, Petroleum Companies could not procure any quantity due to low price.

Govt. of India has fixed the target to replace 20 per cent petro-doesel with Fatty acid
methyl esters upto 2011-12 by producing 13.38 million tones of Fatty acid methyl esters
annually through platation of Jatropha in 11.19 million ha. area. The demand target may be
124.00 million tonne for 2006-07. The domestic production of crude oils and natural gases will
remain around 33.97 million tonne during 2006-07. The gap between demand and supply, 90.00
million tonne is to be met only by import or by producing Fatty acid methyl esters. (38)

National and international status:

Biofuel Scenario in India Background

India, a fast growing economy facing the challenge of meeting a rapidly increasing
demand for energy, ranks sixth in the world in terms of energy demand. Its economy is
(4)
projected to grow 7-8 percent over the next two decades and there will be a substantial
increase in demand for oil to manage transportation and to meet various other energy needs.
While India has significant reserves of coal, it is relatively poor in oil and gas resources. Due to
stagnating domestic crude production, India imports approximately 72, percent of its petroleum
requirement (4).

The global annual requirement of petroleum products is approx. 17,000 MMT,(3) out of
which estimated Indian requirement is 120 MMT. Our domestic production of crude oil and
natural gas was around 34 million tones during 2006-07(14). The huge gap between demand and
supply may be met only by import. The net import burden was increased from $22.6 billion.
(Rs. 1, 01,963 crores) (4) in 2004-2005 to $ 34.1 billion (Rs. 1,50,557 crores) in 2005-06 and
taking into account, the average prices till now during the current year, the net import bill for
2006-07 was of $43.3 billion (Rs. 1,90,000 crores) (14). The increasing trends show one and half
times increase annually and if the present increasing trend continues, it would be a matter of very
serious concern for the country. If the corrective measurers are not taken in time, the India‟s
maximum revenue will drain out in the import of petroleum products.

Bio-fuels are renewable source of energy derived from biological raw material. Two
sources of bio-fuels-ethanol and bio-diesel are gaining worldwide acceptance as one of the
solutions for problems of environmental degradation, energy security, restricting imports, rural
employment, agricultural economy, owing to reduced dependence on oil import; savings in
foreign exchange and reduced vehicular pollution. Two major bio-fuels for the transport sector,
bio-ethanol and bio-diesel, are becoming popular in many countries across the world. (18)

Bio-Diesel

Bio-diesel is an environment friendly fuel, which has almost no sulphur, no aromatics

and has about 10% built-in oxygen. It is fatty acid ethyl or methyl ester. Bio-diesel needs no
separate infrastructure for storage, dispensing and the existing tankage and dispensing stations of
conventional diesel can be used. Bio-diesel is safe to handle and the flash points of bio-diesel are
higher than conventional diesel. Blending of bio-diesel with diesel would result in the reduction
of un-burnt hydrocarbons. Carbon Monoxide and particulate matter in auto emissions, and will
be in line with the objectives of the Auto Fuel Policy of the Government of India. Hence, now
bio-diesel has also caught the serious attention of USA, Canada, Malaysia, Indonesia, India,
Thailand, Philippines, Ghana, South Africa, China, Zambia and many other countries(14).

Bio-diesel is made from virgin or used vegetable oils (both edible and non-edible) and
animal fats. Bio-diesel operates in compression ignition engines like petro-diesel. Bio-diesel can
be blended in any ratio with petroleum diesel fuels. It can be stored just like the petroleum diesel
fuel and hence does not require separate infrastructure. It has various advantages as explained
below. It can be produced from various sources including Tree Borne Oilseeds like Jatropha,
Karanja, Jojoba, Neem etc (16).

National bio-fuels policy

National Bio-fuels Policy is under formulation in the Ministry of New and Renewable
Energy (MNRE) (4). The draft policy envisages utilization of a wide range of bio-crops such as
sugarcane, sweet sorghum, cassava, maize and tree borne oilseeds like Jatropha, Karanja etc. for
production of bio-fuels(4). The draft Policy also envisages setting up of „National Bio-fuels
Development Board‟ to develop a road map for use of bio-fuels in petrol and diesel engines in a
time bound manner besides taking appropriate policy measures. The National indicative target
of 5 % blending by 2012 and 10% by 2017 has also been envisaged in the Draft Policy (18).

Development of bio-diesel

A National Bio-diesel Mission is being launched by the Planning Commission to cover

25 lakh ha. Area in the country, which will meet 5% replacement of the diesel requirement of the
country.The MPNG, has launched bio-diesel procurement policy w.e.f. 01.01.2006 @ Rs. 25 per
litre through state-owned petroleum companies in 12 states. However, Petroleum Companies
could not procure any quantity due to low price. Govt. of India has fixed the target to replace 20
per cent petro-doesel with bio-diesel upto 2011-12 by producing 13.38 million tones of bio-
(31)
diesel annually through plantation of Jatropha in 11.19 million ha area. The demand target
was 124.00 million tonne for 2006-07. The domestic production of crude oils and natural gases
remain around 33.97 million tonne during 2006-07. The gap between demand and supply, 90.00
million tonne was to be met only by import or by producing bio-fuel.

Government initiatives during 10th plan (2002-07)

The Jatropha curcas and Pongamia pinnata are available in almost all the states but in a
scattered manner that too with traditional plantation with low productivity and less oil content in
the seed. The countrywide efforts have been made and superior trees having more yield and high
oil content have been identified in the country. The seed material of such plants has been
collected and is being provided to various Agricultural Universities and institutions for
developing model plantation. Such plantation has been undertaken in more than 10,000 ha in 21
states (12).

The scheme „Integrated Development of Tree Borne Oilseeds‟ (TBOs) has been initiated
during the 10th Plan period to harness the existing potential and augment the future potential of
TBOs like Jatropha, Jojoba, Mahua, Neem, Karanja, Wild apricot, Cheura, Kokum, Simarouba,
Tung etc. The scheme comprising of promotional programmes such as development of elite
nursery and model plantation; establishment of TBOs garden; transfer of technology
programmes through farmer‟s and trainer‟s training; Research and Development programmes
and back-ended credit linked subsidy programmes such as nursery raising and commercial
plantation; establishment of procurement centres; installation of preprocessing and processing
equipments are being implemented. The progress is complied as below. (26)

Transfer of technology(14)

The programmes on awareness have been sanctioned to disseminate the technical know
how on package and practices, marketing, uses of value added products of TBOs domestically
and for industrial purpose. In all, 18 trainers‟ training for field functionaries and 58 farmers‟
trainings for primary seed collectors as against the target of 124 farmers training and 48 trainers
training have been organized. 5800 field functionaries and seed collectors and 900 field
functionaries have been trained about the package of practices of tree Borne Oilseeds during
2005-06(14).

Current status of biodiesel plantations

Biofuels are gaining importance as a number of countries (developed and developing) have
made mandatory policies for blending fossil fuels petrol with bio-ethanol and diesel with
biodiesel(4).Demand for biofuels is expanding very fast as necessary policy support is there,
demand exists, and technology to produce bio-ethanol and biodiesel are available. However,
(5)
shortage of raw material to produce biofuels is becoming a major constraint . For meeting the
growing demand for biodiesel developed countries are using edible oil seed crops such as
soybean, rapeseed, groundnut, sunflower and cereals such as maize for bio-ethanol production.
However, countries like India cannot afford to use edible oils for biodiesel or cereal gains for
(5)
ethanol production . Non edible oil seeds shrubs such as Pongamia, Jatropha and neem
(Azadirachta indica) are explored for commercial production for biodiesel and sweet sorghum
for ethanol (5). These crops not only can meet the oil demand for biofuel production, but can also
green the wastelands in drought-prone areas, without sacrificing the food and fodder security as
well as improve the livelihoods of the rural poor (5).

Not much scientifically validated information is available for Jatropha and Pongamia, and
(5)
many policy decisions are taken in factory environment . Both these plants are generally
grown in isolation that too without proper agronomic management. However, due to escalating
oil prices and race to achieve energy security, plant like Jatropha has become a wonder plant. Lot
of claims on yield potential, water requirement and pest and disease tolerance are not based on
(5)
scientific observations . It is important that science is applied to assess and harness the
potential, and policy decisions are not taken in a “factory environment.” The International
Crops Research Institute for the Semi-Arid Tropics (ICRISAT) at Patancheru, India and several
other institutes have initiated systematic research on biodiesel from non-edible sources and
ethanol from sweet sorghum (5).

Biodiesel plantations offer an opportunity for converting fallow and unproductive lands into
green oil fields as a renewable source of energy Petroleum diesel is a major contributor to both
greenhouse gasses (GHG) emission and other atmospheric pollutants. The use of biodiesel
blends or neat fuel or green fuel will stop degradation of land and the environment and also
improve the rural livelihoods. There is a need to conduct research in identifying improved plant
types for higher returns from the plantations. Modification in the farm machinery is needed for
making use of oil in situ rather than depending on processing. This is likely to reduce the
dependence on fossil fuel and ensure energy security in future.

Green cover over barren and unproductive lands will reverse the process of degradation
caused by mostly water erosion. Fertility of these marginal lands will improve through recycling
of nutrients from deeper layers, additional of leaf liter, nitrogen fixation (Pongamia) and carbon
will be sequestered unlike fossil fuels. Studies have shown that Jatropha returns 19 Kg N ha-1
year-1 through litter fall from third year through liter fall from third year onwards (6)
,
Employment generation from plantation, harvest and processing activities will reduce migration
from rural areas, which is a big concern in most Asian countries. Participation of women SHGs
in managing the plantations will boost their livelihoods and will empower the women.
Recycling of oilcakes will reduce the dependence on inorganic fertilizers and will pave the way
for organic farming. Further, there is scope for earning carbon credits and the additional benefits
can be passed on to the growers (6).