BIO-DIESEL FROM JATROPHA

INTRODUCTION
Jatropha is a bush that grows in regions around the equator. In equatorial regions where moisture
is not a limiting factor, Jatropha can bloom and produce fruit throughout the year. It requires
specialized nursery techniques to raise the saplings in the nursery. Jatropha starts yielding seeds
from the end of first year and the economic yield stabilizes from the end of 3rd year onwards. The
plantation cost per hectare inclusive of site preparation, plant, material, maintenance for one year,
overheads etc. shall be in the tune of Rs. 30,000 to Rs. 35,000 per hectare. It has been estimated
that one hectare of land can accommodate 2500 Jatropha plants. The yield per plant in one
harvest is around 3.5 kg. and from one kg of seeds, a little over 300 ml. of bio-diesel can be
procured.
An integrated Jatropha bio-diesel project has three stages : i) the first stage of the production
process of bio-diesel production from the seeds of Jatropha is the plantation stage, ii) extraction
stages of bio-diesel production, and iii) the final stage of bio-diesel production is the
transesterification stage in which raw oil is transesterified to bio-diesel.
With global oil prices on the rise, there have been vigorous efforts across the world to develop
and utilize bio-fuels extracted from variety of plants. In India, the focus is an expanding the area
under the cultivation of Jatropha which has lately emerged as major sources of bio-fuel in the
country. If around 60 million hectares of wasteland in the country are brought under Jatropha
cultivation, it would produce 60 million tones of Jatropha bio-fuel, while the countrys total
requirement of fossil fuel is around 200 million tones a year.
PRODUCT USES
Jatropha can be used for bio-energy to replace petrol-diesel and lubricant. it has applications as
medicine, for soap production and climatic protections. As Jatropha is toxic, it is not eaten by
cows or other animals. In India efforts are on to use Jatropha bio-fuel for running cars.
MARKET POTENTIAL
In addition to the Indian Railways, a large number of state-owned transportation corporation are
now making use of Jatropha bio-fuel as a substitute of fossil fuel. Good quantities of Jatropha biofuel are procuring by public sector oil companies. The market for Jatropha oil will be huge,
whether in India or outside India. Sensing the growing demand for bio-fuel in India, over a dozen
of private outfits have started contracting villagers and tribal for growing Jatropha cultivation.
SUGGESTED CAPACITY
The production capacity per annum will be as follows:
According to initial feasibility studies, plant with a capacity of 500 kg Jatropha fruit per batch of 810 hrs. is envisaged.
Production Capacity
Annual Production
Annual Production of Bio-diesel

=
=
=

One MT (two batch) per day

365 MT Per year.
146 MT Per year.

=
=
=

365 days per year.

2 batch per day.
8 10 hours.

Basis:No. of working days

No. of Shifts
One shift

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INFRASTRUCTURE REQUIRED
The main Infrastructural facilities required are:
Total Area Required
Covered shed area
Open area
Power requirement
Water (required in every working day)

5000 sq.ft.
1000 sq. ft.
2000 sq.ft.
12 kw.
General Purpose

RAW MATERIALS REQUIRED AND AVAILABILITY

Jatropha is grown in areas that are unsuitable for other plants, because they are too dry or too
arid. 1Kg. of good Jatropha seed will give around 1100 seeds. Approximately 794 Kgs fruit are
grown in one hectare of land. To Cultivate 100 000 hectares of land to produce up to 1 million
metric tons of Bio-fuel.
Jatropha cultivation generates an income of Rs. 25000.00 per hectare. One hectare of jatropha
produces 1,892 liters of fuel (about 6.5 barrels per acre). One kilogram ripe Jatropha fruit is cost
Rs.3.00.
SUGGESTED LOCATION
Bio-diesel Plant should be located mainly in Jatropha growing area and also should be
surrounded by available Jatropha cultivation throughout the year as well as skilled manpower.
(i) karbi angling, Jorhat in Assam (ii) Ri-bhoi and East Garo Hiis Dist. In Meghalaya (iii)
tamenglang Dist. In Manipur (iv) Sikkim.
PRODUCTION PROCESS
Ripe fruits are placked from the tree and seeds are sun dried. Ripe fruits are decorticated
manually or by decorticator. To prepare seeds for oil extraction, the seeds should be solar heated
for several hours or roasted for 10 minutes, overheating is to be avoided. The main steps for
manufacturing process of bio-diesel fuel are:
1.
2.
3.
4.
5.
6.
7.
8.

Jatropha oil is filtered to remove any solid particles.

Jatropha oil is then heated to remove any water content.
Titration is done to determine how mach catalyst is needed.
Exact quantity of potassium hydroxide is then thoroughly mixed in methanol till it
dissolves completely to get potassium methoxide.
Jatropha oil is heated if required (during winter), and mixed in the potassium methoxide
while with agitator rinning.
It is then allowed to settle and glycerine is removed from bottom.
Bio-diesel fraction is then washed and dried.
It is then checked for quality.

PROJECT ECONOMICS
The total capital requirement estimated is Rs. 66.00 lakhs as given below:A.
Fixed Capital
(Rs. in Lakhs)
Land
Own/Lease
Land Development Cost
1.00
Building/Civil Works
i.)
ii.)
iii)
iv.)

Work shed 700 sq. ft.

Office/Reception 200 sq.ft.
Storing tanks pipe lining etc
Toilet/Bathroom/cemented open space
Drainage facilities etc.
Plant & Machinery

44

4.20
1.40
2.50
1.00
44.85

Misc. Fixed Assets (water arrangement/overheadreservoir/ pump-set/power line connection/ water &
electrical fittings/office equipments)

2.50

Preliminary & Pre-operative Expenses

Sub-Total(A)Rs

1.00
58.45

Working Capital
(Norms)
Raw Materials/Consumables
Working Expenses
Finished Goods
Receivable

(Rs. in Lakhs)

1 month
1 month
10 days
5 days
Sub-Total(B) Rs

Note: Working Capital to be financed as:Margin Money :

Bank Finance:

1.12
1.12
0.82
0.56
3.62

Rs. 1.75 lakhs

Rs. 1.87 lakhs
Rs. 3.62 lakhs

Means of Finance
(Rs. in Lakhs)
Rs. 15.52
Rs. 46.55
Rs 62.07

romoters Equity(25%)
Term Loan(75%)

Cost of Production & Profitability

Raw materials/consumables
Wages & Salaries
Utilities
Repair & Maintenance
Administrative Overhead
Depreciation
Interest
Total Rs.
Sales Turnover
I. Selling of 146 MT of bio-fuel
@ Rs. 29.00 per ltrs.

(Rs. in Lakhs)
13.40
10.68
2.72
0.20
0.40
2.30
6.00
35.70
(Rs. in Lakhs)
42.34

Profitability:
Based on the sales realization and the operating expenses, the profit would be Rs. 6.64 lakhs per
year. This works out to a return on capital investment of 10.7%. The unit would break-even at
about 75% of the rated capacity.
Break Even Analysis
A.
Variable Cost:
Raw Materials/Consumables
Utilities
Total Rs
B.

Semi-Variable Cost:
Wages & Salaries
Repair & Maintenance
Administrative Overhead
Depreciation
Interest
Total Rs

C.
D.

Sales Realisation:
Contribution

(Rs. in Lakhs)
13.40
2.72
16.12
(Rs. in Lakhs)
10.68
0.20
0.40
2.30
6.00
19.58

Rs. 42.34 Lakhs

Rs. 26.22 Lakhs

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E.

Break Even Point

B/D X 100% (capacity Utilization)
Machinery & Equipment
Name of the machinery

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.

75%

CLARIFIER SECTION
PH Adjuster reactor
Drier Reactor
Raw Oil Tank
Caustic Tank
Soak Tank
Clear Oil Tank
Dried Oil Tank
Structural support for Clarifier section
Motor
Geared Motor
Other Miscellaneous fittings.
CONVERTER SECTION
M. S. Tank
Barometric Catchuller
Barometric Condenser
S.S 304 tube & M.S. Shell Condenser
Catalyst Mixture(S.S.304)
Setting Tank(S.S.304)

No. of M/C
required

Capacity

1
1
1
1
1
1
1
2
2

3.00 MT
1.00 MT
5.50 MT
0.50 MT
0.50 MT
0.75 MT
0.50 MT
2 HP
2 HP

6
3
1
2

1.0 MT
300 KG
700 KG

18.
19.
20.
21.
22.
23.
24.
25.

Washer Tank(S.S.304)
1
700 KG
Distillation Reactor(S.S.304)
1
1.0 MT
Plate Filter of 18X18
1
Structural support for converter section
1
Geared Motor
1
2 HP
Vacuum Pump
1
5.0 HP
Pump & Motor
4
2.0 HP
Lot of S.S. 304 pipes (1), Valves,
Flanges, bends, nuts, bolts.
26. Electrical Starter & Switch
27. Steam Boiler
1
50 KG/ Hr.
Total Cost of Plant Rs. 39.00 Lakhs
Add. 15% towards Packaging, forwarding, Insurance, Transportation, Loading,
Unloading, Installation & Commissioning etc.
Total Cost of Machinery Installation Rs. 44.85 Lakhs

Manpower
Category

No. of Person

Salary Per Person

Monthly Salary Bill
Per Month(Rs)
(Rs.)
a) Manager
1
8,000
8,000
b) Chemist
1
7,000
7,000
c) Skilled Worker
4
6,000
24,000
d) Semi-skilled workers
6
4,000
24,000
e) Un-skilled workers
2
3,000
6,000
f) Store Keeper/Accountant
2
6,000
12,000
Total Manpower cost Rs.
81,000
Salary Bill Rs 9.72 Lakhs + Benefits @10% annually i.e. Rs 0.96 lakh
Total Annual Salary Bill : Rs. 10.68
Utilities
Power for Machinery:
12 H.P.
General Lighting:
2 H.P
------------16 H.P.
-------------

46

a)

b)

Highlights:

Electricity Bill:
14 H.P. X 0.746 KW X 14 Hrs. X 365 days X
Hence, Annual Electric Bill
Water Charge

(L.S.)
Total Utilities (a + b)

Rs.
5.00
Rs 2,67,000 lakhs
Rs. 5,000 lakhs
Rs. 2,72.000 lakhs

The major highlights of the project are as follows:

Total Capital requirement
Rs.
62.07
Promoters contribution
Rs.
15.52
Annual Sales realization
Rs.
42.34
Annual Operating Expenses
Rs.
35.70
Annual Profit
Rs.
6.64
Return on sales
15.5%
Break-even point
75.0%
No. of person employed
16

Machinery Suppliers:
1. Institute of Agriculture,Forest & Environment
House No. 31,
Street No. 2 Chhipabakhal Near Sitlamata Temple,
Indore, Madhya Pradesh - 452 002
3. Dhanwanti Bhawan,
Railway Road,
Kurukshetra,
Haryana - 136 118

lakhs
lakhs
lakhs
lakhs
lakhs

2. Arnab Biotech Farm

30/B, Lenin Sarani,
Kolkata- 700 013,

4. Beast Engineering Technologies

162, Prasanthi Nagar,
Industrial Estate,
Near Balaji Temple,
Kukatpally, Hyderabad,
Andhra Pradesh - 500 072,
6. Umech Engineering Pvt. Ltd
L-13, Gali No. 9,
New Rohtak Road Indl. Area,
Anand Parbat
New Delhi - 110 001

5. Swaraj Herbal Plants Pvt. Ltd,

Tripuri Chowk ,
Nagpur Road, Jabalpur,
Madhya Pradesh - 482 003,
Faizabad Road, Barabanki,
Uttar Pradesh - 225 001,

47