Final RM Doc

8/8/2019 Final RM Doc

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GROUP 1

Sr. No. Name Roll No. E-mail

1 Sanjay Bhatia 10 [email protected]

2 HardikChowdhary

11 [email protected]

3 Nishant Jain 21 [email protected] Urvi Madhwani 31 [email protected]

5 Sakina 33 [email protected]

6 KrutikaMorparia

38 [email protected]

7 Vipul Rawal 43 [email protected]

8 Sagar Varma 52 [email protected]

9 Shrey Shah 55 [email protected]


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ABSTRACT

Energy plays a vital role in the economic growth of any country. Current energy supplies

in the world are unsustainable from environmental, economic, and societal standpoints.All over the world, governments have initiated the use of alternative sources of energy

for ensuring energy security, generating employment, and mitigating CO2 emissions.

Biofuels have emerged as an ideal choice to meet these requirements. Huge

investments in research and subsidies for production are the rule in most of the

developed countries. India started its biofuel initiative in 2003. This initiative differs from

other nations in its choice of raw material for biofuel productionmolasses for

bioethanol and nonedible oil for biodiesel. Cyclicality of sugar, molasses, and ethanol

production resulted in a fuel ethanol program which suffered from inconsistentproduction and supply. Inconsistent policies, availability of land, choice of non-native

crops, yield, and market price have been major impediments for biodiesel

implementation. However, a coherent, consistent, and committed policy with long -term

vision can sustain Indias biofuel effort. This will pr ovide energy security, economic

growth, and prosperity and ensure a higher quality of life for India.


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Global Energy Overview

Ensuring an adequate and reliable energy supply at competitive prices to support

economic growth and meet essential population needs is vital for any country. The

volatility of the market and of energy prices, declining production rates, and recent

geopolitical acts of war and terrorism has underscored the vulnerability of the current

global energy system to supply disruptions. According to World Energy Outlook (2008),

current energy supplies are unsustainable from environmental, economic, and societal

standpoints. In addition, it is projected that world energy demands will continue to

expand by 45% from 2008 to 2030, an average rate of increase in 1.6%/yr. Preventing

catastrophic and irreversible damage to the global climate ultimately requires a major

decarbonization drive. Globally, 80% of total primary energy supply depends on the

fossil fuels coal, gas, and petroleum-based oils. Renewable energy sources represent

only 13% of total primary energy supply currently, with biomass (the material derived

from living organisms) dominating with 10% in renewable sector .

Traditional biomass, including fuel wood, charcoal, and animal dung, continues to

provide important sources of bioenergy for most of the world population who live in

extreme poverty and who use this energy mainly for cooking. More advanced and

efficient conversion technologies now allow the extraction of biofuels in solid, liquid, andgaseous forms from a wide range of biomass sources such as woods crops and

biodegradable plant and animal wastes. Biofuels can be classified according to source,

type, and technological process of conversion under the categories of first, second,

third, and fourth generation biofuels.


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National governments are setting targets and developing strategies, policies, and

investment plans in biofuels to enhance energy security and exploit alternative energy

to mitigate CO2 emission. The recent increase of oil prices, energy security fears, and

the domestic reform of agricultural policies (in the context of international negotiation for

agricultural trade liberation) give cause for a more serious consideration of biofuel in

most of countries. USA, Europe, and Brazil are leading proponents of these initiatives.

Mandates for blending biofuel into vehicle fuels have been enacted in at least 37

countries. In the USA, estimated subsidies to the biofuel industry may reach US $13

billion in 2008 and federal tax credit could cost US $19 billion/yr by 2022. In the

European Union (EU), biofuel support of 0.52/l will end up costing its tax payers 34

billion/yr. These initiatives contributed to the rapid growth of liquid biofuels in terms of

volume and share of transport fuels. Since 2001, biofuel production has increased

almost sixfold to 6 billion litres in 2006 and is projected to grow to 3.03.5% of total

global transport energy by 2030 from the present 1.9%.


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Indian Energy Challenges

India is a rapidly expanding large economy and faces a formidable challenge to meet its

energy needs in a responsible and sustainable manner. To sustain Indias 8% average

annual economic growth and to support its growing population, India needs to generate

two- to threefold more energy than the present. This means an increase in energy

supply from 542 million tons of oil equivalent in 2006 to 1,516 million tons of oil

equivalent in 20312032. The nature, dimensions, and complexities of achieving this

challenge are analyzed based on the present energy capacity, context, and potential.

The country is rich in coal and abundantly endowed with renewable energy in the form

of solar, wind, and hydrogenated energy, bioenergy, and large reserves of thoriu m.

Unfortunately, reserves of hydrocarbon, gas, and uranium are meagre. More than half

of Indias energy needs are met by coal, and about 80% of Indias electricity generation

is now fueled by coal.

Indian Overview

In India, the interest in biofuels has grown substantially during the last few years. The

primary reason for this is that energy security, better environmental performance,

greening of wastelands and creation of new employment opportunities are seen as

some of the advantages of biofuels. Biofuels may be considered and accordingly

developed as a multi-dimensional beneficial energy alternative for our nation. The two


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types of biofuel that are currently in focus of attention in India are (i) Bioethanol and (ii )

Biodiesel.

A constituted core committee, under this initiative has conducted the comprehensive

estimation of energy and carbon balance of selected biofuels, across their value chains,

i.e., feedstock development, manufacturing process, blending and end use, pertaining

to Indian conditions.

Definition of Bio-fuels

The term Bio-fuels needs to be suitably defined under section 19 of the Standards of

Weights and Measures Act, 1976 so as to avoid any ambiguity in this regard. Further,

the term should be so defined so as to provide for necessary adjustments in its contents

in respect of technological developments. Bio -fuels are alternative to conventional fuels

and as such may be viewed as alternative fuels which term has been defined inCanadian Alternative Fuels Act, 1995 as follow:

alternative fuel means any fuel that is

(a) for use in motor vehicles to deliver direct propulsion.

(b) Less damaging to the environment than conventional fuels, and

(c) Prescribed by regulation, including, without limiting t he generality of the foregoing,

ethanol, methanol, propane gas, natural gas, hydrogen or electricity when used as a

sole source of direct propulsion energy and

(d) Satisfies the specifications that may be prescribed in this behalf.

Rationale of Biofuels for transport in India:

The rationale of taking up a major programme for the production of bio - fuels for

blending with gasoline and diesel in our country lies in the context of

ethanol and biodiesel being superior fuels from the environmental point of vie w

use of biofuels becomes compelling in view of the tightening of automotive

vehicle emission standards and court interventions,

the need to provide energy security, specially for the rural areas,

the need to create employment, specially for the rural poor living in areas having

a high incidence of land degradation,

providing nutrients to soil, checking soil erosion and thus preventing land

degradation,

addressing global concern relating to containing Carbon emissions,


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reducing dependence on oil imports.

usability of biofuels in the present engines without requiring any major

modification,

the production of biofuels utilizing presently under -utilised resources of land and

of molasses and, in the process, generating massive employment for the poor.

the use of biofuels not requiring major or time consuming studies or research,

as will follow in this report, the programme of production of biofuels in the country

is feasible, is environmentally desirable and is less injurious to health and would

address a variety of concerns expressed in the X Plan document.

Biofuel For Transport:

Oil provides energy for 95% of transportation and the demand of transport fuel

continues to rise. Oil will remain the fuel of choice in road, sea and air transportation.

Our country being a developing country, the increase in demand in our country for oil for

use in the transport sector will grow at a much higher rate. All countries including India

are grappling with the problem of meeting the ever increasing demand of transport fuel

within the constraints of international commitments, legal requirements, environmental

concerns and limited resources. In this connection transport fuels of biological origin

have drawn a great deal of attention during the last two decades.

Feasibility of producing bio-fuels as petrol and diesel substitutes

While the country is short of petroleum reserve, it has large arable land as well as good

climatic conditions (tropical) with adequate rainfall in large parts of the area to account

for large biomass production each year. The country, therefore, has very good potential

to produce biomass that can be processed in to biofuels that are substitutes of transport

fuels.

Ethanol:

In India ethanol is currently produced mainly from molasses that is a renewable sour ce

and a bio-product of the sugar industry.. It can be also produced from starch as

potatoes or even wood. The sugar cane juice and its products both sugar and molasses

can be diverted for production of ethanol to be blended in gasoline. However, ethanol

has other uses such as beverage and industrial alcohol.


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Bio-diesel:

For the reason of the demand for edible oil being higher than its domestic production,

there is no possibility of diverting this oil for production of bio -diesel. Fortunately there is

a large area of degraded forest land and unutilised public land, field boundaries and

fallow lands of farmers where non-edible oil can be grown. There are many tree species

which bear seeds rich in oil. Of these some promising tree species have been evaluate d

and it has been found that there are a number of them such as Pongamia Pinnata

(Honge or Karanja) and Jatropha curcas which would be very suitable in our

conditions. However, Jatropha carcus has been found to be the most suitable species

for the purpose on many grounds.

It will use lands which are largely unproductive for the time being and are located in

poverty stricken areas and in degraded forests. It will also be planted on farmers

fieldboundaries, fallow lands and on public lands such as along the railways, roads and

irrigation canals.

Cost Component:

The cost components are the price of seed, seed collection and oil extraction, oil

transesterification, transport of seed and oil. Cost recovery will be through sale of cake

and of glycerol. Taking these elements in to account the price of Biodiesel has been

worked out, assuming a net return of Rs. 3 per kg to the seed producer, the price ofglycerol between Rs. 60 and 40 per Kg and the price of oil cake @ Re 1 per kg, the cost

of Biodiesel works out to Rs. 13.24 to Rs. 14.10 per litre ex -transesterification plant.

The cost components of Bio-diesel are the price of seed, seed collection and oil

extraction, oil trans-esterification, transport of seed and oil. As mentioned earlier, cost

recovery will be through sale of oil-cake and of glycerol. Taking these elements into

account, the price of Bio-diesel has been worked out assuming raw material cost of Rs.

3 per kg and varying prices of by-products. The cost of Bio-diesel varies between Rs.9.37 per litre to Rs. 16.02 per litre depending upon the price assumed for the oil - cake

and glycerol. The use of Bio-diesel is thus economically feasible.


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Effects on environment and human health - Biodiesel:

Biodiesel (mono alkyl esters) is a cleaner-burning diesel fuel made from renewable

sources such as vegetable oils. Just like petroleum diesel, biodiesel operates in

combustion-ignition engines. The use of biodiesel in a conventional diesel engine

results in substantial reduction of unburned hydrocarbons, carbon monoxide and

particulate matter. However, Emissions of nitrogen dioxides are either slightly reduced

or slightly increased depending on the duty cycle and testing methods. The use of

biodiesel decreases the solid carbon fraction of particulate matter (since the oxygen in

biodiesel enables more complete combustion to CO2), eliminates the sulphur fraction

(as there is no sulphur in the fuel), while the soluble or hydrogen fraction stays the same

or is increased. Therefore, biodiesel works well with new technologies such as oxidation

catalysts.

Effects on environment and human health - Ethanol:

Ethanol (ethyl alcohol, grain alcohol, EtOH) is a clear, colourless liquid with a

characteristic, agreeable odor. In dilute aqueous solution, it h as a somewhat sweet

flavour, but in more concentrated solutions it has a burning taste. Ethanol (CH3CH2OH)

is a group of chemical compounds whose molecule contains a hydroxyl group, -OH,

bonded to a carbon atom. Ethanol made from cellulosic biomass materia ls instead of

traditional feedstocks (starch crops) is called bio-ethanol.

Government of India has taken a decision to introduce petrol blended with ethanol for

5% use in motor vehicles all over the country in a phased manner. In the first phase, the

5% ethanol blended petrol will be introduced in the States of Andhra Pradesh, Gujarat,

Haryana, Karnataka, Maharastra, Punjab, Tamil Nadu and Uttar Pradesh. Rest of the

States/Union Territories will be taken up in the second phase.


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Details of progress on biofuel initiatives in various states of India

1. Andhra Pradesh

Promotion of pongamia and simaruba with an objective to achieve 100,000 acres of

biodiesel plantations in 13 districts was initiated in order to make productive use of

degraded land. Forest department is planning to enter in to a public private partnership

with private company for ensuring buy back agreements. For example, a formal

agreement was entered with Reliance Industries for jat ropha planting. The company has

selected 200 acres of land at Kakinada to grow jatropha. Government has reduced the

value added tax for biodiesel to 4% and state road transport corporation was planned to

run 10% of its fleet on 5% blending of biodiesel .

2. Bihar

Plantations have been initiated in districts namely, Araria, Aurangabad, Banka, Betiah

(West Champaran), Bhagalpur, Gaya, Jahanabad, Jamui, Kaimur, Latehar,

Muzzaffarpur, Munger, and Nawada

3. Chhattisgarh

Chhattisgarh Biofuel Development Authority has been set up for promotion of biofuel.

210 million jatropha saplings were raised for planting in the year 2005 and 2006 and

planted on 84,000 ha of farmers and government fallow land. Pilot demonstration

plantation was established on 100 ha in government fallow land in each district.

A small transesterification plant was installed for biodiesel production at Raipur.

Biodiesel-based power generators for rural electrification in a cluster of 50 remote

villages were also installed. As a part of the government plan to electrify all village s by

2012, 400 villages are planned to electrify through jatropha based biodiesel funded by

Village Energy Security Program of MNRE. State-of-art laboratory was set up in

association with a local NGO, for testing of oils and biodiesel, etc. As a demonstration,

chief minister continued to use biodiesel-blended fuel in his official vehicle. Government

notification issued for allotting government revenue fallow land on lease to private

investors to undertake Jatropha/Karanj plantation and also to setup biodiesel plant


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4. Jharkhand

Plantations have been initiated in 19 districts nam ely Bokaro, Chatra, Daltenganj,

Devgarh, Dhanbad, Dumka, Garhwa, Godda, Giridih, Gumla, Hazaribag, Jamshedpur,

Koderma, Pakur, Palamu, Ranchi, Sahibganj, Singbhum (east and west)

5. Gujarat

Plantations have initiated in 10 districts. Ahmednagar district more than 1,000 farmers

are working with Govind Gramin Vikas Pratishthan for jatropha planting an area of 2,500

acres. To date, more than 2 million jatropha plants have been planted in the target area

of the five villages of Vankute, Dhoki, Dhotre, Dhavalpuri, and Gajdipoor

6. Goa

Plantations have been initiated in Panaji, Padi, Ponda, and Sanguelim districts

7. Himachal Pradesh

Plantations have been initiated in Bilaspur, Nahan, Parvanu, Solan, and Unna districts

8. Haryana

Plantations have been initiated in 11 districts name ly, Ambala, Bhiwani, Faridabad,

Gurgaon, Hisar, Jind, Jhajjar, Mohindergarh, Punchkula, Rewari, and Rohtak

9. Karnataka

A biofuel policy has been drafted by state government. Plantation has been initiated in

15 districts. Farmers in semiarid regions of Karnataka are also planting jatropha.

Since 2002, Labland Biodiesel, a Mysore-based private limited company, is active in

biodiesel and jatropha development .

10. Kerala

Plantations have been initiated in Kottayam, Quilon, Trichur, and Thiruvananthapuram

districts

11. Madhya Pradesh

Plantations have been initiated in 20 districts, namely Betul, Chhindwara, Guna,

Hoshingabad, Jabalpur, Khandwa, Mand Saur, Mandla, Nimar, Ratla m, Raisena, Rewa,


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Shahdol, Shajapur, Shivpuri, Sagar, Satna, Shahdol, Tikamgarh, Ujjain, and Vidisha

12. Maharashtra

200 ha plantations were raised in Nasik and Aurangabad districts. In July 2006, Pune

Municipal Corporation demonstrated biodiesel blended fuel in over 100 public buses. In

September 2007, the Hindustan Petroleum Corporation Limited partnership with the

Maharashtra State Farming Corporation Ltd. for a jatropha -based biodiesel venture

13. Orissa

Plantations have been initiated in 13 districts namely Bolangir, Cuttack, Dhenkanal,

Ganiam, Gajapati, Jajapur, Koraput, Keonjhar, Kalahandi, Nowrangpur, Nawapra,

Phulbani, and Puri

14. Punjab

Plantations have been initiated in 5 districts namely, Ferozpur, Gurdaspur, Hoshiarpur,

Patiala, and Sangrur

15. Rajasthan

Plantations have been initiated in Udaipur, Kota, Sika r, Banswara, Chittor, and Churu

districts

16. Tamil Nadu

The government has been promoting development of jatropha through large scale

entrepreneurs. To support contract farming of jatropha in 20, 000 ha, government

allocated Rs. 400 million through primary Agriculture Cooperative Banks. The

government has abolished purchase tax on Jatropha. Currently entrepreneurs

established 1,000 acres area under jatropha against the target of 20,000 ha

17. Uttarakhand

A biodiesel board has been established to coordinate jatropha cultivation. Board also

coordinate seed procurement, extraction, and transesterification. Along with MNRE

government planned to electrify 500 villages with biodiesel .


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RESEARCH METHODOLOGY

Purpose of the study:

To obtain and present clear data and information to outline the acceptability of biofuelsamongst masses at a higher cost.

Research Objective:

Our main objective of selecting this topic is

y To assess the perception of Biofuels amongst masses

y To study acceptance of biofuels.

Research Design:

Source of data: Primary and Secondary

Sampling Plan:

Sampling Universe: People who use cars

Sampling Method: Non-Probability Convenience Sampling

Sample Size: 100

Research Instrument : Questionnaire

Contact Method: Personal Interview

No. of Observers: Two


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DATA ANALYSIS AND INTERPRETATION

Questionnaire

Name:

Age:

1. Are you aware that Petrol and Diesel are depleting quickly?y Yes 94%y No 6%

2. Which of the following sources of energy would you consider for usage instead ofpetroleum?

y Solary Biofuelsy Hydroelectricy Natural Gas

3. Are Biofuels feasible for transport?y Yes 72%y No 28%

4. IfBiofuels are available in same range would you prefer them?

y Yes 67%y No 33%

%

SOLAR

BIOFUELS

HYDROELECTRIC

NATURAL GAS

36%

21%

15%

28%


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5. How much are you willing to pay forBiofuels with respect to petroleum?

y 5% - 10%y 10% - 15%y 15% - 20%

6. What advantages do you expect with using Biofuels?

y Efficiencyy Costy Environment

7. On the scale of 1 4 how important is the role of Public policies in implementing usage of

Biofuels?

y 1- not awarey 2- least awarey 3- importanty 4- very important

EFFICIE CY

C ST

E VIR ME T

48

88

72


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8. What will be the future ofBiofuel industry in India?

Chi Square Analysis

Awareness Acceptability

Features

Cost 28 25 53

Efficiency 19 10 29

Environmental

benefits

10 8 18

Total 5.7 4.3 100

Degree of freedom = (3-1) (2-1)

= 2*1

= 2

0

20

40

60

80

100

BRI HT MODERATE BAD

%

%


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O E O-E (O-E)2 (O-E)2/E

28 30.21 -2.21 4.8841 0.16

25 22.79 2.3 5.29 0.23

19 16.53 2.47 6.109 0.37

10 12.47 -2.47 6.1009 0.49

10 10.26 -0.26 0.0676 0.006

8 7.74 0.26 0.0676 0.008

Total 1.264

Predetermined significance level 5%

Degree of freedom 2

The table value is 5.99

Calculated value is 1.264

The calculated value < Table value

Hence hypothesis value is accepted.

CONCLUSION

Biofuels are accepted in India at a relatively higher cost. As advantages are far exceeding the

disadvantages ofBiofuels it is easily acceptable. As the replacement petroleum products have far

more adverse effects on the environment and the cost rise is pinching the pockets of common

people Biofuels can easily replace petroleum ie petrol and diesel.

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