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10 11 March, 2009

Menam Riverside Hotel, BangkokThailand

SVN-Partners-Clients Workshopon

Biofuel Development in the

Asian Region

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Nawa Raj DhakalSenior Training Officer

Alternative Energy Promotion Centre (AEPC)

Kathmandu, NepalE-mail: nawa.dhakal@aepc.gov.np/

nrdhakal@yahoo.comwww.aepc.gov.np

Government of Nepal:The Policy on Biofuels

mailto:nawa.dhakal@aepc.gov.np/mailto:nawa.dhakal@aepc.gov.np/

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Nepals Energy Consumption

Traditional87.67%

Electricity1.82%

Petroleum8.22%

Coal1.76%

Renewable0.53%

Source: WECS, 2006

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Energy Consumption by SectorAgricultural/

Other0.8%

Commercial1.5%

Industrial

4.5%

Transport3.70%

Household89.3%

Source: WECS 2006

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Fuel Crisis!!!

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Why Biofuels?

Biofuels have sustainable propertiesLocally produced and decentralisedPartial replacement of fossil fuels possible

Bio-dieselBio-ethanol

Small scale to large scaleRural Areas cooking, lighting, agricultureprocessing, electricityUrban Areas transportation

Employment generation

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Projected Potential Ethanol

Sugar industries and capacities

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Projected Potential Bio-diesel

Sources of bio-diesel in Nepal

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Appropriate Source of Bio-diesel

Jatropha Curcas LHigh-yielding speciesCan be grown in low-yielding areas

Up to 1400m

Low maintenance careUsed in fencing across Nepal

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Governments Rural Energy Policy, 2006

Activities related to awareness creation for the use

of bio-fuelsTechnology for bio-fuelsDevelopment and promotion of bio-fuels

R&D and dissemination on non-edible vegetableoils as energy source

Working Strategies

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Major Government Interventions / 1RECAST has tested diesel engines with unesterifiedplant oilAEPC workshop outcomes:

Non-edible plant oil for running electric generator inOkhaldhunga and irrigation pump in SirahaSNV and WWF organised assessment of biofuelpotential in Nepal

Alternative Energy Task Force recommended utilisationof biofuel in Nepal

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GoN announced E10 Blending in 2002A 2007 AEPC study on economic, technical andenvironmental aspects of using E10 and E20

Positive findings and recommendationsNov 2008: GoN decided to blend 10% ethanol in

petrol

Major Government Interventions / 2

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GoN Biofuel Programme: FY 08/09

Allocated USD 0.625 MillionMajor activities planned:

Awareness / information dissemination on biofuels

Formulation of biofuel promotion strategyEstablishment of Jatropha nurseriesCapacity building for Jatropha plantationsInstallation of bio-diesel processing plants

Implementation of pilot projects on biofuels

Link with SNV on comprehensive value chainassessment

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Way Forward

Establish price and market mechanism for ethanolResearch on bio-diesel (pilot projects)Encourage plantation of Jatropha Link with Climate Change ~ Carbon CreditsCapacity building of stakeholdersEngagement of local communityLaunch biofuel processing industries

Regulatory mechanismsQuality controlScale of productionAllocate areas for production

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Thank You!