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World Biofuel Day

Biodiesel from Used Cooking Oil

रं धन से ईध
ं न

Shantanu Gupta
Chief General Manager (AE&SD)
Indian Oil Corporation Ltd.
National Goals in Energy

Reducing import dependence


National vision of Energy
Import dependency in Crude & Product (%)

83.7
82.9

81.7
Energy Energy
Sustainability Access 80.6

78.3

77.3
Energy Energy
Security Efficiency

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Import dependence expected to rise to 92% by 2040


Drivers of UCO based Biodiesel

 National Policy on Biofuels - 2018

 5% blending of biodiesel in diesel by 2030

 Biodiesel blended in diesel during 2018-19 : 82 TKL (~0.1%)

 Biodiesel requirement for blending by 2030-31 : 8500 TKL

 5% blending in HSD

 Estimated Biodiesel economy by 2030-31 : Rs. 25,000 crore

 Value of HSD substituted by biodiesel : Rs. 32,500 crore


Source of UCO

Hotels Resturants

Bulk oil
Canteens
users
Chemical Process – Bio Diesel Production
Process Flow - Used Cooking Oil to Bio-diesel
“Triple E” strategy for UCO

E – Education:
Educating both the consumers and food businesses
about public health consequences of spoiled UCO.

E - Enforcement:
Amongst large food processing plants, restaurants
and fast-food joints that are frying food in large
quantities.

E – Ecosystem:
For collection of Used Cooking Oil and producing
biodiesel from it, used oil does not find its way back
to food supply chain the through black market.
Expression of Interest

Launched on 10.8.2019 – World Biofuels Day


EOI released for blending in 100 cities

Total requirement : 240 TMT


Blending of 0.3% possible

This shall meet Advanced Biofuel Blending Obligations (ABBO)


EOI on Biodiesel from Used Cooking Oil

 Price
– Ex-factory price : Rs. 51/liter
• Increased by 3.4% every year for the next two years
• Pricing after 3 years will be decided by OMCs.
– Transportation and GST extra
– OMCs shall provide off-take guarantee for 10 years
 Quality
– Delivery as per specification as per IS 15607:2016
– Manufacturer should preferably have in-house laboratory
capability / he may get his sample tested at an accredited
NABL laboratory
– OMCs to check quality independently
 Traceability
– Supplier of Biodiesel to OMCs shall develop a suitable
traceability mechanism to ensure that collected UCO
should only to be used for production of Bio-diesel.
Business Model - I

Collection, Aggregation and conversion of biodiesel by single entrepreneur

FSSAI

Transportation by
UCO Collection
Bio-Diesel tankers to OMC Retailing /
from Restaurants,
Production installations/ retail Branding
Hotels, etc.
outlets

Denaturant

By producers By OMCs
Business Model - II

Collection/Aggregation and pre-treatment by an


intermediate entrepreneur and supply of a specific quality
of UCO for conversion to biodiesel in a production plant

FSSAI

UCO Collection Collector Aggregator


from Restaurants, trucks,
Biodiesel Retailing/
• Tanks
Hotels, Canteens, jerry cans, •Cleaning
Plant Branding
Bulk Oil Users, tins, etc.
etc.

Denaturant
By producers By OMCs
Used Cooking Oil - Govt. Initiatives

 Used cooking oil will have multiple numbers of polarised compounds. It


can lead to liver disease, blood pressure, Alzheimer’s like health
problems.
– New amendment in the Food Safety and Standards Act (FSSAI)
mandates that the Total Polarized Compound (TPC) value in edible
oil must be less than 25%.

 Guidelines for Collection of UCO by FSSAI – 6.5.19


– Manufacturers of Biodiesel to be enrolled with FSSAI under ‘Guidelines
for sale of Biodiesel for Blending with HSD for transportation purposes –
2019’ & approved to collect biodiesel
– Manufacturers authorize collection agents / aggregators for
collection. Manufacturers ensure non-reuse.
– Manufacturers issue certificate to collection agents / aggregators
Policy intervention required

 Assistance from Government of India, FSSAI, State Governments

– Enforcement for UCO collection

– Certification of UCO

– Denaturing UCO after permissible use

– Traceability, Assurance & certification that Biodiesel is


produced from UCO

– Quality standardization of UCO to be used for Biodiesel


production.
Towards a
सुजलाम् सुफलाम् शस्यश्यामला भारत

Thank you