Naturol to export 10,000 tonnes of biodiesel

Hyderabad-based Naturol Bioenergy Ltd. will soon be exporting biodiesel to Europe. The company, which produces biodiesel at its facility in Kakinada, in Andhra Pradesh, will export up to 10,000 tonnes of biodiesel to Europe – the first and the biggest shipment of biodiesel from India.

Naturol grows jatropha and other oilseeds on its 5,000 hectares of land in Andhra Pradesh. The company’s 100% EOU plant at Kakinada, which cost US$31 million to set up, was commissioned in April this year. It is the country’s first fully integrated oleochemical complex and has a capacity of 30 million gallons of biodiesel per day.

Hero Motors to make CNG kits for automobiles

With the rise in petrol and diesel prices, CNG is one cheaper alternative for car owners right now, and demand is skyrocketing. Seeing a quick business opportunity, Hero Motors is planning to start making CNG kits for cars. These kits will be made at Hero’s existing plants in Ghaziabad and Manesar.

It’s not just the aftermarket – even manufacturers are looking at launching cars that are compatible with LPG or CNG, hence Hero Motors seems to be entering the alternative fuel kit segment at a very good time.

Daimler AG to study viability of biodiesel usage in India

Mercedes-Benz, which has already been testing some of its cars with biodiesel, will now increase its efforts towards wider adoption of the alternative fuel...

In an effort to find a solution – even if it’s only a partial one – to the worldwide fuel crisis, Daimler AG will be studying the viability of biodiesel usage in India, Indonesia, Africa and South America. For this, the German carmaker has tied up with Bayer CropScience (BC) and Archer Daniels Midlands Company (ADM).

Mercedes-Benz has been testing biodiesel-powered C-class cars in India for the last few years, and after extensive testing, the company is happy with the results. Using biodiesel produced at Bhavnagar, by the Central Salt and Marine Chemicals Research Institute (CSMCRI), a Mercedes-Benz C220 CDI traveled across India, reporting no problems with the usage of biodiesel.

Typically, for modern diesel cars like the Mercedes-Benz C- and E-class vehicles, very little engine modification is needed to run biodiesel. As biodiesel can be a bit more corrosive than ordinary diesel, some rubber and plastic parts (like various hoses) in the engine need to be changed, but that’s about it.

Derived from the Jatropha plant, biodiesel offers advantages in terms of a reduction in unburnt hydrocarbon emissions and particulate emissions. Now, along with Bayer CropScience and Archer Daniels Midlands, Daimler AG will study production and quality standards for Jatropha biodiesel.

‘Alternative fuels are an integral part of our roadmap towards sustainable mobility. Our research activities within the last few years have proven, for example, that Jatropha-based biodiesel can be produced with quality similar to biodiesel from oil seeds. It is time now to evaluate the commercial potential of Jatropha biodiesel,’ said Prof Dr Herbert Kohler, VP - Vehicle and Powertrain, Group Research and Advanced Engineering, Daimler AG.

The Indian government has identified 400,000 square kilometres (98 million acres) of land where Jatropha can be grown. The government hopes that Jatropha-derived biodiesel can replace normal diesel to the extent of 20%, by 2011. M&M has announced a biodiesel-compatible Scorpio, while even the Indian Railways runs some locomotives on a blend of normal diesel and biodiesel in a pilot project aimed at studying the viability of the alternative fuel.

However, due to some other reports, Jatropha-derived biodiesel may not be a panacea for the worldwide fuel crisis. To read more about how biodiesel can be extremely dangerous for human beings, see here

Sapphire Energy: Making petrol from algae…

Petrol from algae. Pretty cool, eh?

Sapphire Energy says it has produced renewable 91 octane petrol, made from a breakthrough process that produces crude oil directly from sunlight, CO2 and photosynthetic microorganisms, beginning with algae.

‘Sapphire’s goal is to be the world’s leading producer of renewable petrochemical products,’ said CEO and co-founder Jason Pyle, speaking at the Simmons Alternative Energy Conference.

‘Our goal is to produce a renewable fuel without the downsides of current biofuel approaches. Sapphire Energy was founded on the belief that the only way to cure our dependence on foreign oil and end our flirtation with ethanol and biodiesel is through radical new thinking and a commitment to new technologies,’ said Pyle.

Sapphire’s algae-petrol has hydrocarbons chemically identical to those in normal petrol, and will be entirely compatible with the current energy infrastructure from cars to refineries and pipelines. Plus, the company claims that the Sapphire platform offers vast advantages – scientific, economic and social – over traditional biofuel approaches.

Sapphire’s scientists have built a platform that uses sunlight, CO2, photosynthetic microorganisms and non-arable land to produce carbon-neutral alternatives to petrochemical-based processes and products.

First up: renewable petrol. Critically important, in light of recent studies that prove the inefficiencies and costs of crop-based biofuels, there is no ‘food vs. fuel’ tradeoff. The process is not dependent on food crops or valuable farmland, and is highly water efficient. ‘It’s hard not to get excited about algae’s potential,’ says Paul Dickerson, chief operating officer of the Department of Energy’s Office of Energy Efficiency and Renewable Energy ‘Its basic requirements are few: CO2, sun, and water. Algae can flourish in non-arable land or in dirty water, and when it does flourish, its potential oil yield per acre is unmatched by any other terrestrial feedstock.’

Scalability – the key to success

Sapphire’s scalable production facilities can grow easily and economically because production is modular, transportable, and fueled by sunlight – not constrained by land, crops, or other natural resources.

‘Any company or fuel that hopes to solve the biofuel conundrum must be economically scalable – and that requires conforming to the existing refining distribution and fleet infrastructure,’ says Brian Goodall, Sapphire’s vice president of downstream technology. (Goodall led the team responsible for the highly visible, first-ever Virgin Atlantic ‘green’ 747 flight earlier this year. In addition to a three-decade career in the petrochemical industry, he is a corporate inductee at the National Inventors Hall of Fame.)

Developments require new industrial category: Green Crude Production

In fact, Sapphire’s processes and science are so radical, the company is at the forefront of an entirely new industrial category called ‘Green Crude Production.’ Products and processes in this category differ significantly from other forms of biofuel because they are made solely from photosynthetic microorganisms, sunlight and CO2; do not result in biodiesel or ethanol; enhance and replace petroleum-based products; are carbon neutral and renewable; and don’t require any food crop or agricultural land.

The final products are completely compatible with the existing petroleum infrastructure, from refinement through distribution and the retail supply chain.

For more details, visit the Sapphire website here

Decision on fuel price hike expected today

Prime Minister Manmohan Singh today assessed the situation arising from global crude prices' record run and the government may decide later in the day on raising retail fuel prices and a compensation package for oil marketing companies.

External Affairs Minister Pranab Mukherjee, Finance Minister P Chidambaram, Oil Minister Murli Deora and Planning Commission Deputy Chairman Montek Singh Ahluwalia were at the meeting, in which the Prime Minister's Principal Secretary T K Nair also sat through.

The ministers did not take questions from the media after the meeting, though according to some reports, the Cabinet may later in the day decide on the proposal to hike prices of petrol, diesel and LPG prices, as also reduction in excise duties.

The Petroleum Ministry has been pushing for a Rs 10 per litre hike petrol prices, Rs 5 a litre in diesel and Rs 50 per LPG (cooking gas) cylinder. In the absence of a hike, state-run oil companies HPCL and BPCL would run out of cash to import crude in the next two months, while Indian Oil Corp has said it would run out of money for buying crude by September-end.

IOC reports loss of Rs 414cr in Q4, will start rationing fuel supplies

Unless the government takes prompt action, the situation could quickly get very, very bad for IOC and other state-owned oil PSUs in the country

After reporting profits for the last 10 quarters, Indian Oil Corporation (IOC), the largest oil company in the country, with more than 55 percent market share, reported a net loss of Rs 414.27 crore for the fourth quarter of 2007-08. This is in stark contrast to Rs 1,502.69 crore profit which the company posted during the fourth quarter of the last fiscal.

For 2007-08, the company posted a net profit of Rs 6,962.58 crore as against Rs 7,499.47 crore in 2006-07. IOC also announced a dividend of 55 percent for 2007-08, down from 130 percent last year. The total dividend pay out for the year will be Rs 655.81 crore, while the amount was Rs 1,550 crore last year.

IOC’s gross turnover during the fourth quarter of the current fiscal stood at Rs 70,256.85 crore, up from Rs 55,166.46 crore in the same period last year. Total income from operations was Rs 64,343.59 crore, up from Rs 49,817.82 crore last year.

For the 2007-08 fiscal, IOC’s gross turnover stood at Rs 247,479.39 crore, an increase over last year’s figure of Rs 220,779.36 crore. Total income from operations was Rs 225,972.05 crore as against Rs 200,923.09 crore last fiscal. Profit before tax for the year was Rs 10,080.40 crore as against Rs 10,485.00 crore in the previous year. The company’s earning per share stood at Rs 58.39 this fiscal, as against Rs 62.90 in 2006-07.

In what could have serious implications for the company in the months to come, the total under-realisation during the year reached Rs 9,773.76 crore, as against Rs 2,190.40 crore in 2006-07. IOC is losing Rs 320 crore a day on the sale of petro-products. The company has already stopped diesel imports, and will go slow on new LPG connections.

To cut revenue losses, IOC will start rationing fuel supplies. ‘We have decided to restrict supplies of auto fuels to whatever is domestically available. In fact, we are already doing it,’ said Sarthak Behuria, IOC chairman. While the Indian government dithers on raising fuel prices, IOC is losing Rs 16.34 on every litre of petrol it sells, Rs 23.49 on every litre of diesel, Rs 28.72 on every litre of kerosene, and Rs 305.9 per cylinder of domestic LPG.

Behuria said that in order to meet demand, IOC would need to import two million tonnes of diesel, but would not do so and would prefer to restrict supplies. He added that the company only has sufficient cash to fund imports till September this year. ‘Till now, the market is not feeling the pinch. But if the Government does not act, we might see queues and shortages,’ warned Behuria.

HCCI: Opel technology to boost fuel efficiency on 2009 Insignia

With HCCI tech, the Opel Insignia's petrol engine will be able to deliver up to 15 percent better fuel efficiency. GM, we also want this technology in India!

To be shown at the upcoming London Motor Show in July this year, the Insignia is Opel’s replacement for the Vectra, which was briefly – and not very successfully – also sold in India. According to Opel, ‘The Insignia, with its groundbreaking design and sophisticated technology, makes a quantum leap toward rejuvenating the brand and providing the perfect opportunity to discover Opel.’

But while the Insignia may be all very high-tech, stylish, safe and all-around competent, that may not be its calling card. What may set the car apart from other cars in its segment is the HCCI engine technology, which will be available on the Insignia from early 2009.

Developed at GM Europe's International Technical Development Center in Rüsselsheim, Germany, the Opel Insignia will be launched this year with a range of petrol and diesel engines. However, from next year on, the car will get a new petrol engine with Opel’s ‘Homogenous Charge Compression Ignition’ (HCCI) technology. With some engineering wizardry, HCCI is said to combine a diesel engine’s fuel economy with the free-revving, smoother characteristics of a refined petrol engine.

Standard diesel engines don’t use spark plugs – they compress the fuel and air mixture until it’s hot enough to burn by itself. Petrol engines, however, need a spark to get the ignition going. With HCCI, the system redirects some of the exhaust gases back into the combustion chamber, which warms up the petrol and air mixture so it doesn’t need a spark to ignite.

In stop-start urban driving, with up to half throttle / 3,000rpm, the engine works in HCCI mode, which leads to very significant gains in fuel efficiency. The engine automatically reverts back to a conventional spark ignition set-up when the driver accelerates hard.

According to GM, HCCI increases fuel efficiency by about 15 percent, which in these times of rocketing petrol prices, has to be a good thing. Maybe in a year or two, we’ll also get to see HCCI tech on GM’s cars in India?

Petrol may be deregulated, prices may go up to Rs 65 per litre

The three oil PSUs and car/bike owners in India don't have much to smile about anymore

In the face of sky high crude prices, which touched an all-time high of US$135 per barrel last week, and given the fact the oil PSUs are incurring huge losses, the Indian government may soon consider decontrolling petrol prices.

State-owned oil PSUs in India – Indian Oil, Bharat Petroleum and Hindustan Petroleum – expect a revenue loss of Rs 200,000 crore in this fiscal, on the sale of petrol, diesel, domestic LPG and kerosene. To save these companies from disaster, petrol prices may have to be deregulated, which may mean that consumers could soon be paying up to Rs 65 or more for a litre of petrol.

Deregulating petrol prices would mean that prices in the country would be similar, or somewhere close to international petrol prices, which, in most cases, is much higher than what we currently pay in India. However, to save the transport industry, diesel will continue to be sold at a subsidized price, though there may still be a price hike on the fuel of Rs 2 – 3 per litre.

Currently, petrol in India is being sold at a massive loss of Rs 16.34 per litre, and diesel at a loss of Rs 23.49 per litre. Hence, deregulating petrol prices, which would cut revenue losses by only Rs 20,000 crore, can only be part of the solution.

In fact, the three oil PSUs are already facing a huge liquidity crunch, and having to resort to borrowing Rs 3,500 crore a month to meet expenses. Indeed, the future for oil PSUs, and for car/motorcycle owners looks bleak. Perhaps the time for electric vehicles has come already?

Petroleum Ministry wants Rs 10/ltr hike in petrol prices

Soon, you may be paying up to Rs 60 per litre of petrol!

The Petroleum Ministry is seeking price hikes of Rs 10 per litre for petrol, and Rs 5 per litre for diesel, along with cuts in customs and excise duties to offset the impact of surge in crude prices, which recently went up to US$135 per barrel.

‘The situation is getting to be alarming. We need to stem the rot in the beginning,’ said M S Srinivasan, Petroleum Secretary, after a meeting with the heads of the three oil PSUs in the country. He added that fuel prices being hiked is now inevitable and a final decision on this could be expected in the next 2 – 3 days.

Oil PSUs under great duress, Govt may hike fuel prices

Headed by Prime Minister Manmohan Singh, the Cabinet may meet today to consider, among other measures, increasing petrol and diesel prices. This is to help State run oil companies that have been reeling under unprecedented crude price highs.

With Indian Oil, Hindustan Petroleum and Bharat Petroleum projected to lose up to Rs 200,000 crore in revenues – on the sale of petrol, diesel, domestic LPG and kerosene below import cost – a price hike in the range of Rs two to five per litre might be inevitable. ‘We are discussing all possible measures to help and protect our public sector oil companies. Some remedial measures need to be taken,’ says Petroleum Minister Murli Deora.

IOC, HP and BP are currently losing Rs 450 crore in revenues on fuel sales every day. Loss per litre of fuel sold is Rs 16.34 for petrol, Rs 23.49 for diesel, Rs 305.90 per cylinder of LPG, and Rs 28.72 for Kerosene. With international crude prices topping US$135 a barrel, the heads of Indian oil PSUs will be hard pressed to find a solution to their financial troubles.

The three oil PSUs in India are facing a big time liquidity crunch, and they are having to resort to borrowing Rs 3,500 crore a month to meet expenses. Total borrowings of the three firms have reached Rs 65,000 crore, which seems to be a major cause of concern.

The Indian government’s ban on allowing oil PSUs to raise fuel prices will mean that the three companies will end the current fiscal with losses of up to Rs 200,000 crore. This is a huge increase on last year’s losses of Rs 77,304 crore.

While the situation does seem quite bad, it does not warrant panic. There were reports in the media that BPCL has started rationing of fuel and has fixed quotas for each of its petrol pumps. At this time, it's not clear if these reports are true - going by some accounts, this may not be the case, or may only be a very short term measure.

But yes, what is certain is even more expensive fuel in the short- to medium-term, and a forced shift to electric vehicles all over the world, including India, over the next 10 years.

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Auto stocks face the heat as fuel prices surge...

Rising fuel costs may lead to ‘Sick Car Syndrome’

Run your car on LPG if you must, but don't forget to switch on the AC...

Rising fuel costs could have one very unexpected fallout – the increased risk of what’s being called the ‘Sick Car Syndrome.’ As fuel becomes more expensive, some motorists, in a bid to curb fuel consumption, avoid using the AC in their car. Using the AC increases fuel consumption by about 10 percent.

However, experts are now saying that car ACs should be should be switched on at least once a week, to help reduce the build up of fungal spores such as Cladosporium and Aspergillus, which multiply within a car’s ventilation system when the AC isn’t being used.

According to various research reports, the build up of bacterial spores in the air vents can cause health problems, particularly for those already suffering from asthma, when the system is finally used again. Those without allergies may notice a damp, stale smell each time the air-conditioner is switched on.

Also, failure to regularly use the AC increases the likelihood of mechanical failure – prolonged periods of non-use can cause the AC’s parts to seize or corrode.

Biofuel could wreck your car’s engine!

Some time ago, we reported that the Jatropha plant – from which biodiesel is extracted – can be extremely harmful for human beings. Now, according to some reports from the UK (where the law says all diesel sold in the country must be blended with eco-friendly fuel), biofuel could also wreck your car’s engine.

If not cleaned properly and regularly, vegetable- or wheat-based biofuel reservoirs are said to be breeding grounds for bacteria, due to which the fuel is easily contaminated. And when this contaminated fuel is used in cars, it ends up clogging engines, blocking fuel filters and damaging fuel injectors. All of this can cause a car to break down without warning.

In the UK at least, the problem is set to get worse – while current legal requirements mandate that diesel must contain 2.5% biofuel, this will be upped to 5% in the year 2010. Looks like fuel pump operators will just have to get used to more frequent and rigourous cleaning sessions…

Bosch: Flexible injection technology for alternative fuels to help conserve resources

When Mumbai is finally ready to move beyond Premier Padmini taxis, Bosch's fuel management systems for alternative fuels will come in handy!

Bosch has started series production of a number of engine management systems and injection components for alternative fuels. Natural gas, ethanol and synthetic plant-based biodiesel are becoming increasingly important as alternatives to petroleum-based fuels and the components being developed are the key to mobility that conserves resources and is environmentally friendly. With CNG and LPG already widely used in India, Bosch's technology developments in this space could have a very significant impact in the country.

Compressed natural gas (CNG) engines produce 25 per cent less CO2 than comparable gasoline engines and Bosch expects to supply more than 100,000 CNG systems worldwide by 2008. However, while natural gas powered vehicles are becoming more popular across Europe the network of filling stations across the continent is not yet dense enough to support fuelled vehicles using CNG alone. The Bosch NG-Motronic flexible engine management system and natural gas injection valves enable the engine to run on either petrol or CNG, automatically switching between fuels when necessary.

Through running internal combustion engines in a way that conserves resources, biofuels can reduce CO2 emissions even further. A reduction of up to 70 per cent in CO2 emissions has already been achieved using the first-generation biofuels – produced using only the oil-bearing seeds of plants. This impressive figure is predicted to increase to nearer 90 per cent using second-generation biofuels and biogas, which could eventually replace natural gas. In contrast to first-generation, second-generation biofuels are produced by processing the entire plant to make ethanol, synthetic biodiesel or biogas.

In addition to reducing CO2 emissions in new vehicles fitted with appropriately modified technology, the newly developed biofuels can also be used in existing vehicles, with biodiesel being increasingly added to conventional diesel across Europe. Bosch is also working on developing injection systems for use with future biofuels allowing an automotive drivetrain that uses renewable energies as well as the existing infrastructure and technology.

Vehicles in Brazil are already running on biofuels - bioethanol - in the form of E24 (petrol with an ethanol content of 24 per cent) and E100 (pure ethanol). The Flex-Fuel engine management system from Bosch has been developed specifically for this market, to automatically adapt ignition and injection patterns precisely to the fuel mixture being used at any given time.

As low temperatures can degrade the chemical properties of ethanol, Bosch has also developed the Flex-Start system ensuring cold starts and drivability are not impaired. The fuel is warmed in a temperature controlled fuel rail, allowing the Flex-Fuel technology to function effectively in all climatic conditions.

Jatropha Biodiesel: Too expensive a proposition?

According to some new scientific reports, the Jatropha plant, which can be processed to make biodiesel which is grown in various parts of India, can cause great harm to the soil in which it’s grown. Not only that, Jatropha cultivation can also harm aquatic life, and if consumed by children, it can cause skin cancer and brain damage.

Researchers say that Jatropha oil contains tumour-promoting substances, and it is extremely dangerous for the human skin. And if consumed by children, Jatropha seeds – just four or five of them – can cause death.

With its 37 percent oil content, Jatropha has been touted as a ‘wonder plant,’ especially since it can grow on wastelands where nothing else will grow, and since its oil can be used in conventional diesel engines with very little modification.

Since Jatropha is being cultivated in many Indian states, and since the plant’s long-term impact on the environment has not been studied fully, environmentalists say that there is a need for great caution while proceeding ahead with any new Jatropha plantations. Maybe Jatropha-derived biodiesel as a replacement for the conventional diesel will be too expensive a proposition after all…

E-Fuel MicroFueler: Fuel crisis no more...?

Your own fuel pump, in own garage...

With fuel prices climbing up relentlessly, the big question is, what’s next? Electric vehicles? Hydrogen fuel-cell powered vehicles? According to the California, US-based company, E-Fuel Corporation, not necessarily. The company is betting big on its technology, which allows people to covert sugar into ethanol that’ll cost about Rs 10 per litre. Sounds too good to be true? Read on…

E-Fuel Corporation recently unveiled a device called the E-Fuel 100 MicroFueler, which is about the size of two large washing machines, and which uses sugar, yeast and water to make 100% pure ethanol at the push of a button. The 90kg machine uses raw sugar, a proprietary time-release yeast mixture and leftover whiskey – if you have any lying around – as its basic ingredients, from which it churns out ethanol. The MicroFueler even comes with its own pump and hose, so you can easily fill up your car or bike at home. And yes, almost any vehicle than can run on petrol, can also run on ethanol.

Its makers claim the MicroFueler will bring about a paradigm shift in motoring as we know it today. They liken to it the personal computer, saying that like the PC brought computing to the average household desktop, the MicroFueler will bring the fuel pump to every household. In the US, the MicroFueler costs the equivalent of about Rs four lakh, and those who’ve done the math say that after you’ve factored in the cost of sugar, yeast, water and electricity to run the machine, you’ll still end up getting fuel that’s much cheaper than what you buy at your neighbourhood pump. Would something like this, work in India? We don’t see why not!

For more details on the MicroFueler, visist the E-Fuel website here.