Jatropha, a non-edible plant oil source of biodiesel is yet to make regular entry to fuel market. A 10-percent blend of Jatropha-based biodiesel with petro-diesel was reportedly tested in the train running between Delhi and Amritsar in India in 2003. Similar test was also performed on Air New Zealand Boeing 747-400’s Rolls-Royce RB211 engine using 50:50 mix of Jatropha refined oil with Jet A1 fuel on December 30, 2008.
Use of biodiesel as transport fuel to a level of 20 percent (B20) with petro-diesel is technically proven mix recommended for conventional vehicle. Use of pure biodiesel (B100) in vehicle requires engine modification. Despite the technical potential to substitute fossil fuel, the position of biodiesel in the fuel market will be decided above all by its price competitiveness.
Commercial viability of biodiesel depends essentially on the price and quality of feedstock (seeds/raw material), the efficiency of extraction technology, market demand for pressed oil cake, and glycerin derived as by-products.
Price of feedstock is decided by average seed yield and percentage of oil content in the seeds. Higher oil yield is also equally a function of efficient extraction technology. Generally, the types of extraction technology in use are mechanical, and chemical or the solvent extraction. Mechanical method is less efficient and leaves a significant amount of oil in the pressed cakes. Optimum oil from seeds can be extracted by chemical process/solvent method. This method is recommended for large-scale production because of its cost. In Nepal, solvent extraction is used for producing edible oils from soybean and sunflower seeds.
Similarly, market demand for pressed cake or its price for that matter, to use as bio-fertilizer depends on the productivity responses of crops. Jatropha farming for biodiesel will not make economic sense in the absence of market for pressed cake in which case biodiesel price will be way far beyond the subsidy level that the state may support or sustain, and Jatropha seeds have no other uses.
Whether biodiesel is economically viable is yet to be answered. Nepal has seen some efforts to promoting Jatropha based biofuel since the 1990s. By this time, many of Jatropha plantations have reached harvesting stage that are in the 5th to 10th year of plantation particularly in Khairenitar, Hetauda, and in some areas of Siraha, Sunsari and Rupandehi districts. With a very rare exception, seed yields in all these plantations have been less than 500 gram per tree against the expectation of 3-4 kilograms per tree.
Similarly, oil yield by expeller (mechanical) method has also been too low ranging from seven percent to a maximum of 16 percent, which means a minimum of seven kilograms of seeds are needed to extract one liter of oil. The maximum yield of 16 percent was obtained from a more efficient expeller set up with the biodiesel plant at Ramnagar of Chitwan and Jhumsa of Palpa district under the grant of Alternative Energy Promotion Center. In these expellers, seeds are steamed to increase moisture level before they are expelled. Yet, oil yield was too low. In Chitwan, 100 liter of biodiesel was produced from 700 kilogram of Jatropha seeds (14 percent) and in Palpa it was 300 liters from 2600 kilograms of seeds (12 percent).Taking these figures and the prevailing input prices as the basis for financial analysis, biodiesel will cost over Rs 165/liter. Assuming 30 percent oil yield from these relatively cheaper plants will still cost over Rs 100/liter. These are likely prices of biodiesel in the absence of supportive intervention from the state.
Chemical analysis of Jatropha seeds (solvent extraction method) conducted recently at Nepal Academy of Science and Technology (NAST) found oil content in the range from 22.7 percent to 36 percent in the seeds collected from Siraha and Rolpa districts respectively. The test result indicated that level of oil content in the seeds corresponds to altitudes. Low oil percentage was found in the lower altitude and high percentage in the higher altitude.
Simple expellers that were thought appropriate for operating at local levels are no longer recommendable while solvent extraction method is a kind of more centralized production system appropriate for large investors.
Contrary to what has been widely propagated about the potential of Jatropha to grow on any type of soil, the seed yield results from plantations in Nepal has been very disappointing. Such results are also due to plantations being carried out in the manner as if they are just part of afforestation or bio-engineering program. Even with maximum seed yield, it is hard to expect over Rs 100 from a Jatropha tree in the 6/7 year of plantation at current price. Commercial cultivation is thus not attractive where choices for other crop farming are available. Jatropha farming may only be a good option for absentee landlords. The apprehension about food crisis in the event of growing fuel crop appears unfounded at least in the context of Nepal.
In the present context, biodiesel in Nepal is not viable and the question is if and how it can be made viable. What amount of state subsidy and in what form will be required to make it competitive with diesel price? How much will that cost the nation and whether it will be justifiable?
The viability of biodiesel will all depend on the state policy, plan and program formulated on the basis of actual and primary data as the secondary data are proving a myth and hypothetical and failing to match with the ground reality.
chhetri.maya@gmail.com
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