Sandeep Chaturvedi, President, Biodiesel Association of India 11th -13th March 2019 New Delhi

Supply Chain of UCO for Biodiesel

Biodiesel Feedstock

The National Policy on Biofuels - 2018 encourages setting up of supply chain

mechanisms for biodiesel production from:

• Non-edible Oilseeds

• Used Cooking Oil(UCO)

• Short Gestation Crops

UCO Advantage:

•22.5 MMT

•9Mn Tons (40%) used in Restaurants, Processed Food Industry

Edible Oil Consumption

• 2.7 MMT(30% of used in Restaurants, Processed Food Industry) discarded

UCO Collection Potential

• 3.1 Mn Kilolitres of biodiesel

•₹10,800 crores

Biodiesel

Used Cooking Oil

• Oil quality deteriorates during frying.

• Total Polar Compounds(TPC) increase on repeated frying.

• TPC toxicity associated with diseases such as hypertension,

atherosclerosis, Alzheimer's disease, liver diseases, high levels of bad

cholesterol.

Past Disposal Practices :

– Burnt in the Furnace/Boiler/Disposed in drains /sewerage systems.

– Organized FBOs sell UCO to Traders/ street vendors for frying foods.

Desired Disposal Practices :

– Register with RUCO

– Discharge to Authorized RUCO Collectors/Aggregators

FSSAI Interventions: Triple E Strategy

• SBY- 10 lakh participants-21000Km-100 days-2.5 crores people reached

• Training-FBO’s/Municipal Corp Education

• Notification for max 25% TPC

• Directions issued under 16(5) of Act

• Guidance note on discharge/collection

Enforcement

• 26 Plants registered to collect and convert UCO to biodiesel

• 15 Aggregators operation- 200 developing infrastructure

Ecosystem

Achievements & Benefits

• 1685 FBO registered

• UCO collection about 800,000Kgs

• 15 collection centres operational 185 in various stages

Expected Benefits:

• Health Benefits & Cleaner Environment

• Economic Growth & Employment Generation

• Save Forex of about 12000Cr

• 200,000 jobs across 10,500 locations in 723 districts - 29 state and 7

UT’s

Ecosystem-Largest Global Network

• UCO based Biodiesel has premium in the Export market ❌ National

Policy Bans Export of Biofuels.

• The OMC’s expect low price for Biodiesel ❌ FBO’s expect higher

compensation for UCO

• Installed Capacity 1.413 Mn Tons but only 50% can handle UCO

• The state government changing GST + VAT on Blended fuels leading

to double taxation

• Clear price policy backed with national mandate

• 5% GST on Biodiesel at par with similar Biofuels

• Technology support within the policy framework