Biodiesel comes to Southeast Asia

General NEWS

Oil companies preparing to enter biofuels business Amid growing concerns with

for use in internal combustion

and Petrochemicals Limited

the refineries from the design

energy security, India's leading oil

engines. State ONGC, which

(MRPL) and UK's Cairn Energy.

stage. The Andhra Pradesh gov-

and gas companies are laying the

accounts for 80% of India's oil

ONGC plans to build an export-

ernment has agreed to help

groundwork to become biofuels

and gas production, said it

oriented refinery at Kakinada in

source jatropha and sweet

producers and suppliers in the

expects to develop biofuels and

Andhra Pradesh. The 55 billion

sorghum as feedstock for ethanol

coming years. The Petroleum

wind power within two years to

rupees plant will have a capacity

production, he said. The compa-

Ministry, which is driving the pro-

complement its fossil fuels port-

of 5.5 million tonnes to 7.5 mil-

ny has also submitted a proposal

gramme, has set an ambitious

folio. Chairman Subir Raha said

lion tonnes a year. (US$1=45

to the Rajasthan state govern-

target for biodiesel and biofuels

the company plans to include

rupees). Mr Raha said the biofu-

ment to cultivate jatropha as a

to eventually meet 20% of

biofuels production units at its

els units will be integrated into

feedstock for biofuels.

India's diesel demand.

proposed petroleum oil refineries

Oil and Natural Gas Corporation

in the states of Andhra Pradesh

(ONGC), Hindustan Petroleum

and Rajasthan. He said Andhra

Corporation (HPC), Bharat

Pradesh has promised support for

Petroleum Corporation (BPC),

a biofuels plant while discussion

Indian Oil Corp and Reliance are

will soon begin with the

at various stages of setting up

Rajasthan state government. The

contract farming deals and biofu-

Andhra Pradesh government

els production and distribution

plans to convert most of its

facilities throughout the country.

15,000 state-owned vehicles to

The oil companies are concluding

use biodiesel by February. It is the

deals with plantation groups to

first Indian state to cultivate jat-

grow the oil-rich jatropha crop in

ropha, pongamia and neem on a

the states of Tamil Nadu,

large scale for biodiesel produc-

Chattisgarh, Rajasthan, Haryana,

tion. In Rajasthan, ONGC has

Maharashtra and Gujarat.

received official approval for

Jatropha is a hardy crop that can

building a 7.5-million tonne/year

grow in arid regions. The oil

refinery at Barmer district

extracted from its seed can be

through a joint venture between

mixed with conventional diesel

its subsidiary Mangalore Refinery

Biodiesel comes to Southeast Asia Singapore, Southeast Asia's

phase 200,000 tonnes/year

most urbanised country, could

plant - costing US$20 million - is

be the site of the region's first

due to start up in early 2007.

biodiesel plants. Three compa-

Both plants will largely use palm

nies involved in the international

oil imported from the region

agricultural trade have

which produces more than 80%

announced plans to build two

of the world's palm oil.

plants on the petrochemical hub

Biodiesel production could help

of Jurong Island worth at least

open up an oleochemicals clus-

S$84 million. (US$1=S$1.7). A

ter on Jurong Island, which cur-

joint venture between

rently is dominated by oil, petro-

Singapore's Wilmar Holdings

chemicals and chemicals compa-

and US agricultural giant Archer

nies. Both companies, which ini-

Daniels Midland Company

tially will export the bulk of their

(ADM) will invest S$50 million in

plants' output to the West,

a 150,000 tonnes/year plant

expressed the hope that

scheduled to come onstream by

Singapore would encourage

December 2006. It could be

greater biodiesel consumption.

expanded to 300,000

They added they were interest-

tonnes/year. Germany's Peter

ed to build a chain of biodiesel

Cremer GmbH said its first

plants in other Asian countries.

www.re-focus.net

January/February 2006

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