Paradigm Shift Towards Climate Change and Sustainable Development

1. Paradigm Shift Towards Climate Change and Sustainable Development Dr. Jyoti Parikh Integrated Research and Action for Development, New Delhi

2. Integrated Research and Action for DevelopmentA ‘think tank’ that works with ‘action tanks’ • Policy Advocacy and Dissemination • Bio-Diesel Summit “A Discussion Forum for Bio-diesel Stakeholders” • Review paper on Bio-energy for Energy Assessment - TIFAC • Research Analysis and Consultations • Integrated Analysis of Diesel substitutes for Oil seeds in India-PetroFed • Action Projects with Community Participation • Rural Micro enterprise Model for Bio-Fuel Extraction in India • Village Energy Security Program in two hamlets of Gujarat • Seminars/Training/Workshops • IV International Training Program on “Role of Renewable energy in Energy Planning and expanding Livelihoods Options”, New Delhi • Training Program for the member of Bawal Bio-diesel Cooperative under the project “Rural Micro enterprise Model for Bio-fuel extraction in India”

3. Biofuel for Sustainable Development 1. Biodiesel for National Fuel Needs 2. Biodiesel vs. Alcohol 3. Biodiesel for Transport and Rural Energy Security 4. Addressing Public Perceptions (Myths and Facts) 5. Biodiesel and Climate Change

4. 1. Biodiesel for National Fuel Needs - Provide local solutions for national security - Offer village level energy security - Short gestation periods and therefore cut down delays - Technology Components can be simplified - Provide employment opportunities for unskilled and semi- skilled - Lead to sustainable energy solutions - Environmentally friendly

5. 1. Biodiesel for National Fuel Needs (contd..) Background • India spends $56 billion annually on oil & gas imports (Source: MoP&G, 2006-2007) • In 2006-2007, India consumed 146 million tons(MT) of crude oil and petroleum products-75% was imported • India has only 726 MT of economic reserves of crude oil left, whereas the demand exceeds 132MMT (2006-07) HOW TO BRIDGE SUPPLY DEFICIT?

6. 1. Biodiesel for National Fuel Needs (contd..) India’s Energy Scenario: Commercial Energy Mix: 2000-2005

7. 1. Biodiesel for National Fuel Needs (contd..) Oil Yielding Plants • Jatropha curcas or Ratanjot • Pongamia pinnata or Karanj • Calophyllum inophyllum or Nagchampa • Hevea brasiliensis or Rubber seeds • Calotropis gigantia or Ark • Euphorbia tirucalli or Sher • Boswellia ovalifololata 450 varieties identified in various parts of India

8. 1. Biodiesel for National Fuel Needs (contd..) 1 MMT of Jatropha oil needs Processing Outputs

9. 1. Biodiesel for National Fuel Needs (contd..) Financial Analysis Following assumptions are also made in financial computations: • Book rate of Depreciation is considered to be 8% • Debt/ Equity ratio is assumed to be 1:1 • Interest rate on loan is considered to be 6% on reducing balance. It is assumed that repayment will be in 15 equal installments • It is assumed that the projects would enjoy tax Holiday for 15 years of operation • The Capacity of the plant is considered to be 10000 Metric Tonne per Annum for all cases. • Capacity utilization is assumed to be 70% in year1, 80% in year2 and 100% thereafter.

10. 1. Biodiesel for National Fuel Needs (contd..) Assumptions

11. 1. Biodiesel for National Fuel Needs (contd..) Price v/s IRR curve Case 5 : Base case Case 6 : Pessimistic Case

12. 1. Biodiesel for National Fuel Needs (contd..) Biodiesel - Systems Approach Modification needed to use in Transport vehicles, stationary equipment, and oil cakes Separation of seed, kernels, Procurement of seeds plantation of Oil bearing trees Oil extraction, blending and processing Plantation of Oil bearing trees Energy Policy

13. 2. Biodiesel vs. Alcohol Biodiesel Alcohol Biodiesel

14. 3. Biodiesel for Transport and Rural Energy Bio-diesel Transportation Rural Energy Security

15. 3. Biodiesel for Transport and Rural Energy (contd..) Bio-diesel Transportation Rural Energy Security

16. 4. Public Perceptions Myth 1: Prices of Corn, Wheat & Cereals have gone up because of biofuels Fact : This may apply to Alcohol only made from grains. Even-so,the acreage is not substantial enough to make such an impact. .

17. 4. Public Perceptions (contd..) Myth 2: Adverse impact on food security of poor and will worsen hunger Fact : Hunger is observed even when there is no food shortage. Poor need income for which they can buy food. Biodiesel generates income from plantation, caring and finally using it for livelihood

18. 4. Public Perceptions (contd..) Myth 3: There is no land available for biodiesel. Fact :Land is available in small amounts but with many Panchayat around the country. Additionally on the roadside plantations and hedges also possible.

19. 4. Public Perceptions (contd..) Myth 4: Energy Balance (Uses more Energy than it gives) Fact : Depends whether highly mechanised agriculture, irrigation and long distance transports involved.

20. 4. Public Perceptions (contd..) Myth 5: Farmers are unwilling to grow non-edible oil seeds Fact : Depends on the price they get and alternative incomes from land

21. 5. Biodiesel and Climate Change CDM Opportunity and Biofuel To finance projects in developing countries to reduce GHG gases. To implement clean technology and sell the resulting carbon credits to country that can use it to meet GHG targets. To identify biofuel baseline and monitoring methodology. To strengthen the sustainable development goal of CDM, which is currently under achieved.

22. 5. Biodiesel and Climate Change(contd..) As of June 2006, no baseline methodologies for biofuel production and utilization have been approved by the CDM Executive Board. However, five methodologies have been submitted and are under review. Approval of one or more of these would improve chances for biofuel CDM projects significantly.- 30TDP biodiesel CDM projects in Andhra Pradesh, India- CDM project on biodiesel submitted by PCRA to MoEF Current Status of Biofuel in CDM

23. 5. Biodiesel and Climate Change(contd..) Overview of Project

24. 5. Biodiesel and Climate Change(contd..) Overview of Project (contd..) Some observations from the table in previous slide: • Most projects are in Thailand, and all of them in Asia. •Most projects produce biodiesel, only one ethanol.       • Biofuel sources differ much, including palm oil and different types of waste. •The project scale (in terms of CER generation) is comparable to most other CO2 projects, such as energy efficiency and many biomass projects, i.e. 50 – 200 ktCO2/yr.       • CO2 reduction, as claimed on a life-cycle basis, is between 70- 97%; often agricultural, transportation, and biofuel production emissions are considered (the latter is renewable in several cases). •Four methodologies have received a ‘B’-comment from the CDM EB, implying that the methodology can be resubmitted subject to required changes.

25. INDIAN INITIATIVES

26. Indian Initiatives:Utilization • The Government of India has been assisting farmers in cultivating Jatropha Curcas • BIS has amended the specifications of diesel to permit the blending of Bio-diesel • Indian Oil Corporation (R&D) has set up a biodiesel production facility of 60 kg/day at Faridabad • PCRA has set up a Bio-Diesel Centre and submitted CDM project for bio-diesel activities Contd…

27. Indian Initiatives:Utilization • HPCL has also set up an experimental project at Mumbai involving 25 BEST(public transport) buses using 5 per cent, 10 per cent and 20 per cent blends of bio diesel in diesel. • Mahindra & Mahindra Ltd. pilot plant utilizing Karanj for biodiesel has carried out successful trails on tractors in Mumbai • IOC- Indian Railways have conducted successful Shatabdi Train trial runs using Bio-diesel

28. Criteria for Land Availability Department of Land Resources under Ministry of Rural Development, GOI has proposed the criteria for selection of lands for Jatropha plantation. These are: • Annual rainfall should exceed 600mm • The pH of soil should be less than 9 (Wasteland category – Alkaline/saline slight ) • Temperature should not fall below 00 C. In the Himalayanstates in India there are places located above 1500 meters where temperature falls below 00 C. Hence the elevation of lands for plantation in the Himalayas should not exceed 1500meters • The slope of land should not exceed 300 • The land should not be waterlogged (Wasteland Categories 6&7) • The land should not be barren rocky/stony (Wasteland Category 26)

29. Cost of cultivation of Jatropha Assumptions: Seed yield ( as in previous slide) & Seed Price: Rs 5/kg

30. Wasteland that can be considered for jatropha plantation

31. IRADe INITIATIVES

32. BIOFUEL EXTRACTION UNITBawal (Haryana) • Partners Involved • Village Panchayats • Bawal Biodiesel Cooperative (BBC) • Regional Research Station of Chaudhary Charan Singh Haryana Agriculture University, Bawal

33. Biofuel Extraction Unit, Bawal (Haryana) • Project Activities Completed • Awareness Generation • Formation of Bawal Bio-Diesel Cooperative (BBC) • Training Programmes • Policy Support • Field Implementation • Building Construction and Commissioning of Oil Extraction Unit • Dissemination

34. Biofuel Extraction Unit, Bawal,Haryana (contd…) • Specific Objectives • Formulate Micro enterprise Model for biomass based energy system at village level • Provide easy access to alternative fuels in rural areas • Provide sustainable livelihood options for women at village level • Process locally available Jatropha and other oilseeds

35. Dedication Ceremony of Biofuel Extraction Unit in Haryana

36. Dedication Ceremony of Biofuel Extraction Unit in Haryana (contd…) H.E. Dr. A.R. Kidwai, Governor of Haryana is dedicating Biofuel Extraction Unit to Villagers

37. Dedication Ceremony of Biofuel Extraction Unit in Haryana (contd…) Gram Panchayat Allawapur, Village- Bhadoj Welcomes Building of Biofuel Extraction Unit, Bhadoj, Bawal

38. Dedication Ceremony of Biofuel Extraction Unit in Haryana (contd…) Dr. Kirit Parikh, Member Planning Commission, GOI Dr. A. R. Kidwai, Governor of Haryana

39. Dedication Ceremony of Biofuel Extraction Unit in Haryana (contd…) Capt. Ayay Singh, Revenue & Irrigation Minister, Haryana State Dr. Jyoti Parikh, Executive Director, IRADe

40. Dedication Ceremony of Biofuel Extraction Unit in Haryana (contd…) Women from near by gram panchayat’s- Listening the messages View of large gathering – Approx.2000 rural people attended

41. Bio-Diesel Summit“A Discussion Forum For Biodiesel Stakeholders” • Specific Objective of Summit: • Delivery of equitable and accessible bio-diesel policy • Providing technical know-how for commercial cultivation of oilseeds crops and bio-diesel processing • Functioning as information hub • Liaison and linkage among all stakeholders • Energy Security and Climate change mitigation

42. Key Issues (Socio-Economic, Financial and Environmental Issues) Addressed at the Summit Overview of Indian Initiative Overview of methods/best practices of Jatropha plantations and other oil-bearing trees Analysis of existing oil extraction and processing techniques Marketing and End Use Practices Government Policies on Bio-Diesel Opportunities and Challenges in Biodiesel Processing Bio-Diesel Summit (contd..)Highlights • Participants • Public and Private Sector Companies in business of cultivation, oil processing and suppliers • Ministries of Central and State government • International Funding agenicies • Bank and Financial Institutes • Experts and Academics

43. Strategies Developed Cultivation of Oilseeds & Land allocation Coordination with Local Bodies for Nursery Raising Institutional Mechanism for Raising Plantations Yield Data & Subsidies for Plantation Authenticated Information on Cost of Establishment High Initial Seed demand Minimum Support Price (MSP) for oil seeder with Buy Back Guarantee Entrepreneurship Promotion and Private Sector Participation Management of Byproducts Tax & Promotional Policies Extraction and Trans-esterification Developing Biorefinery Concept Interministerial Cooperation Support for Research and Development Biodiesel Production: Corporate Social Responsibility Oil Seed import Setting up of a National Bio-fuel Development Board Gradual Subsidy Reduction Bio-Diesel Summit (contd..)Highlights

44. Issues to be Addressed • Research should be undertaken to improve the yields and value addition through alternative uses such as medicinal ingredients and biopesticides. • Studies should be done on post harvest handling methods. • A series of field demonstrations must be established using currently available information, to highlight the economic viability of cultivation of species such as Jatropha as alternative options on degraded lands and community wastelands. • It is necessary to establish clonal seed orchards and develop mass multiplication techniques to ensure easy supply of elite planting material to growers. Contd…

45. Issues to be Addressed • Agronomic studies to standardise cultivation practices such as spacing, pruning, nutrition and production system must be carried out under different agro-ecological conditions • Realistic economics of production must be worked out for a range of soil, environment and management conditions. • Nodal agencies must be identified in different regions to procure superior quality seeds and plants and technical information.

46. Roadmap…. • How to mobilize cultivation? What scale is possible? • What policy framework (financial interventions, mandate and standards) is needed? • What coordination is needed with vehicle industries? Cost sharing, modernization of equipment. Will they also need direct subsidy? • What institutional structure is suitable that permits flexibility and reduces constraints and barriers? • Can CDM help in generating the needed revenues? What policy should be avoided to ensure CDM benefits?

47. Publications

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