Biodiesel Business Set up in India

by Enterslice ITES Pvt. Ltd. Start and Manage Business

What is Biodiesel?

Biodiesel business set up is shaping up our energy options for future as unlike ordinary diesel; biodiesel is a renewable and clean-burning type of diesel that is made from vegetable oils indeed a revolutionary type of fuel. It can prepare from vegetable oils including soybean oil, canola oil, palm oil and most other popular oils. It is considered that the reliable supply of good quality starter material is very important in its production. Basically, the term biofuel is used to define fuels that are obtainable from plants or animals.

To whom it is most suitable to set up such business?

Biodiesel business set up shall be profitable to those for whom it is a natural extension of their current operations. For example, casinos and prisons have a natural stream of readily available feed stock to make biodiesel and those who can tap into a large reserve of feed stock for free.

It is also beneficial who can cater waste vegetable oil, churches, clubs, carnivals and fairs and such related stuff. The business person engaged in operating the fuels sector – oil and gas companies, distributors, retailers.

Other beneficiaries are as given below:

Those who have considerable current retail network i.e. large dealers, distributors of consumer products.
Those have a pre-setup of Businesses in areas which have access to vegetable oil or animal fat – vegetable oil companies, meat processing companies, commercial units that use large amounts of cooking oil
Businesses dealers engaged in the chemicals and petrochemicals industries.
Such business set up which are willing to invest reasonable amounts in a production set up and distribution network for a biodiesel refinery

Biodiesel vs. Diesel

• Biodiesel contains a low amount of pollutants say Sox is very low in it as compared to petrodiesel.

• Biodiesel is net carbon neutral, which means the biomass from which the biodiesel was obtained captured the same amount of CO2 during its growth phase, in this way biodiesel is a complete substitute for diesel.

• Increasing diesel rates are also one of the reasons biodiesel shall be the next product in demand.

• Diesel has a more disastrous effect on the environment as compared to biodiesel.

Compliance required before setting up of Biodiesel set up:

Certain license and permission from local and regional authorities are required to be taken as given below:

First register a company of Bio-diesel Production in the form of Partnership, Limited Liability Partnership etc.
Register the business under trade License from the local Municipal Authority.
Factory Licenses: Take an approval from the District factory Inspectorate.
Explosive License: the Certain chemical substance is used during manufacturing of Biodiesel, in order to store such chemical say Methanol being used in manufacture, one has to obtain an Explosive License from the Directorate of Explosive.
Pollution Control Board Clearance: a considerable amount of pollution is caused to the environment hence obtain the clearance from the Pollution Control Board.
If a biodiesel plant is established in an area then the according to applicable state law, it may require to secure certain licenses in addition to the general business permit. The zoning and fire regulations of the city must be considered. Observe the environmental standards regarding the use of toxic materials, emission, and disposal of pollutants.
Fire safety standards and certification are required to be taken.
Obtain department of environment emission permit per day, including water and waste management agreement.
Obtain zone compliance insurance, certificate of occupancy including spill containment management.
Depending on manufacturing set up a motor fuel tax and floodplain determination approval before launching the enterprise may be required.
Enter into a contract and provide your own collection bins.

Production from Vegetable Oil:

1. Take recycled vegetable oil to source the oil. The manufacturer then removes impurities like cooking, dirt, charred food, water, and storage in the oil.

2. Impurities are due to cooking, dirt, charred food, water and storage are to be removed.

3. Remove water in order to prevent triglycerides during the base-catalyzed transesterification process.

4. There is a certain bye product based on reaction time and application time.

5. Manufacturers of bio-diesel have many bye products such as glycerol, alcohol, and soap.

Production from Jatropha Oil:

Jatropha oil is easily available it is a large 3 to 4 Meter high shrub, occurring throughout India mostly. It kernel yields 46-58 percent by weight of oil, that is 30-40 percent of seed weight. The oil is also called Circus oil. Through Etherification, the oil becomes Bio-Diesel.

Types of use:

It is typically used for Home use and Commercial use: Including premium motor spirit (petrol), diesel, or gas as their primary fuel, with all these types of engines, the diesel engine is the one most suitable to run on biofuel.
There is no need for engine modification to run on biofuels.
In a Diesel engine, as less fuel is producing the same amount of work in comparison to a petrol engine.

Possible cost of setting up of Biodiesel Business in India

If an integrated biodiesel plant is to establish whereby which starts with crushing of the oilseed or whether the starting point is the vegetable oil.

For vegetable oil, biodiesel plants cost could be about Rs 30-35 lakhs per T per day capacity. It consists of primarily refining and transesterification equipment.

For integrated biodiesel plants along with the equipment like expellers and filter presses, it can cost in the range of Rs 50 lakhs per T per day of capacity.

Apart from the above one need to understand in detail observe the rules and compliance standards at different places:

Observe the U.S. Environmental Protection Agency specifies standards for fuel quality. In Ohio*, demands the following:

a)   Permits for air pollution-producing equipment,
b)   permits or treatment of any discharge that goes into municipal wastewater systems
c)   license to have a well,
d)   Implementation plan for a spill prevention control and countermeasures plan.

*The Ohio Environmental Protection Agency is a state agency which aims to protect the environment and public health by ensuring compliance with environmental laws.

Ohio EPA was created on Oct. 23, 1972.

It regulates, establishes and enforces standards for air, water, waste management and cleanup of sites contaminated with hazardous substances.

The Raw Material for Biodiesel