Initiatives in Alternative Fuels

1. Initiatives in Alternative Fuels

2. Background • National Common Minimum Programme Objectives: -Economic Reforms with A Human face -Energy Security • Reduction in environmental pollution

3. Ethanol-Blended Petrol (EBP)- Past • Ethyl Alcohol used as Gasohol • Available in sugarcane producing countries • Being blended up to 20% in Brazil • 5% EBP introduced in India in 2003 in major sugarcane producing states and adjoining areas • Supply inadequate leading to disruption of EBP programme • Issues concerning State Governments

4. List of Alternative Fuels • Ethanol • Bio-diesel • Bio-diesel initiatives in Ministry of Panchayati Raj • Hydrogen • Coal Bed Methane • Underground Coal Gasification • Gas Hydrates

5. Ethanol-Blended Petrol (EBP)- Present • MOPNG has decided to continue EBP programme subject to availability and suitable pricing • Bids invited by OMCs and offers under evaluation /negotiations • Inter-Ministerial Task Force set up to look into relevant issues • State Governments being requested to sort out availability/ allocation of ethanol and other operational issues

6. Bio - Diesel • A diesel substitute made from virgin or used oil & animal fats • OMCs experimenting in use of bio-diesel diesel blend in transportation • Results are technically satisfactory • Cost of bio-diesel is an issue

7. Bio-diesel feedstocks (Commercial) Common FeedstockCountry Rapeseed Oil France, Finland, Austria, Sweden, UK Sunflower Oil Italy, Germany Spain , Portugal Soybean Oil USA

8. Concerns in India • Edible oils are in short supply. • Bio-diesel envisaged as a source of supplementary income and employment in rural sector. Should not influence change in cropping pattern. • Gainful use of waste/semi arid land for oilseed plantation, involving Panchayati Raj Institutions. • Fiscal concessions necessary for promoting bio-diesel, viz, exemption from import duty for bio-diesel for sometime, exemption from import duty on plant & machinery for bio-diesel and suitable excise duty relief.

9. Value chain of bio-diesel i) Large scale plantation of oil bearing plants like Jatropha Curcus, pongomia ii) Expeller units for extracting oil from seeds iii) Transesterification plants for making bio-diesel from oil iv) Blending of bio-diesel in diesel for commercial use • Making bio-diesel-blended diesel available in retail outlets

10. National Mission on Bio-diesel • Ministry of Rural Development named nodal Ministry. • Detailed Project Report (DPR) has been sent to Planning Commission. • Envisages plantation of jatropha curcus on large scale. • Role of various Ministries defined in DPR. • Role of MOPNG and OMCs envisaged in DPR for blending and marketing of bio-diesel . • Role of MOPR envisaged in identifying and selecting beneficiaries.

11. Initiatives of the Ministry of Panchayati Raj in bio-diesel • MOPR has identified bio diesel as business activity that can be taken up in rural areas through Panchayati Raj institutions. • MOPR has identified responsibilities for different tiers of Panchayati Raj institutions for cultivation of jatropha curcus.

12. Responsibilities to Panchayats for cultivation of jatropha curcus(MOPR) • Creating awareness through mass awareness programmes • Liaison with print & electronic media • Identification of Panchayats and clusters of Panchayats • Collaboration and liaison with National Oil Seed & Vegetable Oil Development (NOVOD) Board, National Dairy Development Board (NDDB), and Petroleum Conservation Research Association (PCRA) • Providing support through district level Forest and Agricultural department officers for the plantation programme, • Dissemination of information to the intermediate and village Panchayats.

13. Role of Intermediate Panchayats(MOPR) • Intermediate Panchayats could be the appropriate level for the PCRA to tie up for the purpose of conducting mass awareness programmes. • Training of all Panchayat members on the significance of the programme, the operational details of the programme, including raising of nurseries, cultivation, care, collection of seeds, post harvesting and collection centres.

14. Role of Village Panchayats(MOPR) • Identification of land, including wasteland, government land and private land, • Promoting Awareness among the people, • Members of Panchayats acting as agents of change, • Promoting production of seedlings, through promotion of decentralized nurseries, preferably by tying up and involving Self Help Groups, • Collection of seeds, running and management of collection centres or crushing centres including through public private partnership, • Signing collaboration agreements with the purchasers of seeds, • Signing agreements for receiving of funds for program

15. Instruments for promoting bio fuels(MOPR) • Sampurna Grameen Rojgar Yojana (SGRY) for development of decentralised nurseries, land preparation, plantation and maintenance etc. • Clean development mechanism under United Nations Framework Convention on Climate Change (UNFCCC) • Technical assistance to village panchayats for preparing project reports

16. Instruments for promoting bio-diesel (MOPR) • A nominal rent could be paid to panchayats to be credited in a special fund • For creating awareness and capacity building among panchayat members State Institutes of Rural Development could include lessons on jatropha curcus plantation for panchayats members and functionaries. • PCRA could prepare the training material and depute experts as faculty.

17. Hydrogen • Hydrogen is a clean fuel and an efficient energy storage medium for automobiles. However, substantial R&D required for establishing use of hydrogen in a cost effective manner. • MOPNG has plans for part substitution of compressed natural gas (CNG) with hydrogen in transport sector. • Hydrogen Corpus Fund (HCF) has been set up with and initial fund of Rs.100 crore. • Demonstration projects in pipeline include using 10% hydrogen in CNG at IOC R&D centre at Faridabad and a similar demonstration project later in Delhi.

18. Coal Bed Methane(CBM) • CBM is methane found in coal seams. • CBM policy approved in July 1997. • 5 blocks under CBM-I and 8 under CBM-II awarded to ONGC and private/JVCs • Total 16 CBM blocks (including 2 awarded on nomination and 1 through FIPB route) awarded so far. • Results expected in 2 years.

19. Underground Coal Gasification (UCG) • UGC is a process by which coal is converted in situ to a combustible gas. • ONGC signed MOU with Skochinsky Institute of Russia for commercialization of natural gas through UCG. • Huge potential of UCG in India from coal/ lignite below 600 metres. • GAIL has an MOU with the Government of Rajasthan for gasification of lignite. • GAIL has tied up with ERGO Energy, Canada for establishing a pilot plant at Barmer in Rajasthan and at Mannargudi in Tamil Nadu.

20. Gas Hydrates • Gas hydrates are methane in crystal form trapped by water molecules at sea bed level. • Still at R&D stage globally • There is at present no commercial production of gas hydrates internationally. • Roadmap for National Gas Hydrates Programme prepared. • India has participated in international R&D activities in gas hydrates in collaboration with USA, Japan and Canada. • Experience sharing programme continuing.

21. SUMMING UP • MOPNG pursuing use of alternative fuels for energy security. • For bio-diesel, MOPNG and MOPR are working in coordination, supplementing each others’ efforts at two ends of the value chain. • The initiatives in alternative fuels are at different stages of development. • Use of bio-fuels in part substitution of fossil fuels is at the threshold of commercial reality. Coordinated approach by all stakeholders concerned is essential . XXXXX