Detail

India

Biofuels

Biodiesel

01/08/2019

Renewable energy

Biofuel policy

Allowed state-owned fuel companies to procure biodiesel made from used cooking oil (UCO) at fixed prices. The launch of a formal chain for the collection and recycling of UCO was aimed at both lowering the country’s mineral oil imports and reducing human health hazards that arise from the repeated use of cooking oils.

According to media reports, India’s Central Government launched a scheme allowing state-owned fuel companies to procure biodiesel made from used cooking oil (UCO) across 100 Indian cities. Reportedly, UCO-based biodiesel will initially be procured at a guaranteed price of INR 51 per litre (USD 0.72), switching to respectively INR 52.70 and INR 54.50 (USD 0.74 and 0.77) in the second and third year. The programme includes a mobile phone application for the collection of UCO and a ‘Repurpose UCO’ sticker to be displayed by participating hotels, restaurants and eateries. The launch of a formal chain for the collection and recycling of UCO is aimed at both lowering the country’s mineral oil imports and reducing human health hazards that arise from the repeated use of cooking oils. In order to meet the government’s separate 2030 target of blending regular diesel with 5 percent biodiesel across the country, the annual biodiesel requirement is estimated around 4.4 million tonnes. Assuming that 1.25 million tonnes of UCO are collected yearly from bulk consumers (i.e. roughly 5 percent of total domestic edible oil consumption), approximately 1 million tonnes of biodiesel could be obtained – thus meeting nearly one quarter of the overall requirement. It is important to keep in mind that, last year, India’s biodiesel production capacity was estimated at no more than 0.6 million tonnes per year, while actual output was reported at merely 165 000 tonnes. (See also MPPU Aug./Oct.’18 & Jan./Mar./July’19)