a concept for simultaneous wasteland reclamation reclamation, fuel production, and socio-economic...

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© 2005 United Nations. Published by Blackwell Publishing, 9600 Garsington Road, Oxford OX4 2DQ, UK and 350 Main Street, Malden, MA 02148, USA. Natural Resources Forum 29 (2005) 12–24 A concept for simultaneous wasteland reclamation, fuel production, and socio-economic development in degraded areas in India: Need, potential and perspectives of Jatropha plantations George Francis, Raphael Edinger and Klaus Becker Abstract The concept of substituting bio-diesel produced from plantations on eroded soils for conventional diesel fuel has gained wide- spread attention in India. In recent months, the Indian central Government as well as some state governments have expressed their support for bringing marginal lands, which cannot be used for food production, under cultivation for this purpose. Jatropha curcas is a well established plant in India. It produces oil-rich seeds, is known to thrive on eroded lands, and to require only limited amounts of water, nutrients and capital inputs. This plant offers the option both to cultivate wastelands and to produce vegetable oil suitable for conversion to bio-diesel. More versatile than hydrogen and new propulsion systems such as fuel cell technology, bio-diesel can be used in today’s vehicle fleets worldwide and may also offer a viable path to sustainable transportation, i.e., lower greenhouse gas emissions and enhanced mobility, even in remote areas. Mitigation of global warming and the creation of new regional employment opportunities can be important cornerstones of any forward looking transportation system for emerging economies. Keywords: Sustainable transportation; India; Wasteland; Jatropha; Bio-diesel; Employment; Development, Renewable energy. 1. Introduction. Global search for alternative fuels Today’s transportation services in industrialized countries are primarily based on fossil fuels, especially crude oil derivatives. The spread of this fossil-energy-intensive approach to developing countries and economies in transi- tion with large populations may be constrained by limited resource availability and concerns about environment and human health. The transport sector is emerging as the larg- est consumer of liquid fuel worldwide. Strategic think-tank alliances have been formed between the automobile and energy industries, particularly in industrialized countries, to develop future transportation concepts and fuel options. The German transport energy strategy has identified hydro- gen and methanol as the most promising alternative fuel options for the future German transportation network. However, the technological challenge of bringing fuel-cell vehicles to the market as well as producing methanol or hydrogen from renewable resources in a cost-effetive way have so far prevented this promising option from being introduced into the market. The increases in efficiency and performance of automobile engines as well as hybrid elec- tric drive systems that are now on the verge of commer- cialization have set a very high barrier to fuel cell systems. Economic conditions and resource availability in develop- ing countries are considerably different from those in in- dustrialized countries. Existing vehicle fleets in developing countries primarily rely on conventional combustion engines, generally with an extraordinarily long service life, resulting in low average efficiencies and a high level of emissions. In urban areas, vehicle emissions and their consequences for human health have become urgent problems, while in remote regions, fuel distribution remains a challenge. Several coun- tries in the tropics also suffer from limited financial means to maintain a state-of-the-art vehicle fleet and quality fuel production and distribution systems. On the other hand, these regions often enjoy abundant sun light, that can be used to generate both electric and thermal power, as well as for cultivating biomass. However, in many tropical regions land degradation and soil erosion have been identified as major threats to existing land-use patterns. We discuss here a biofuel production option that simultaneously addresses diverse problems in the tropical regions mentioned above taking advantage of the warmer climate prevailing there. General guidelines on sustainable development have been outlined in Agenda 21 (UN, 1992), adopted by the United George Francis and Klaus Becker are researchers at the Department of Aquaculture Systems and Animal Nutrition, Institute for Animal Production in the Tropics and Subtropics, University of Hohenheim, Stuttgart, Ger- many. E-mail: [email protected], [email protected]. Raphael Edinger, of Aichtal, Germany, is a guest lecturer at the Univer- sity of Hohenheim. E-mail: [email protected].

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A Concept For Simultaneous Wasteland Reclamation Reclamation, fuel production, and socio-economic development in degraded areas in India: Need, potential and perspectives of Jatropha plantations

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Page 1: A Concept For Simultaneous Wasteland Reclamation Reclamation, fuel production, and socio-economic development in degraded areas in India: Need, potential and perspectives of Jatropha

12 George Francis, Raphael Edinger and Klaus Becker / Natural Resources Forum 29 (2005) 12–24

© 2005 United Nations. Published by Blackwell Publishing, 9600 Garsington Road, Oxford OX4 2DQ, UK and 350 Main Street, Malden, MA 02148, USA.

Natural Resources Forum 29 (2005) 12–24

A concept for simultaneous wasteland reclamation, fuel production,and socio-economic development in degraded areas in India:

Need, potential and perspectives of Jatropha plantations

George Francis, Raphael Edinger and Klaus Becker

Abstract

The concept of substituting bio-diesel produced from plantations on eroded soils for conventional diesel fuel has gained wide-spread attention in India. In recent months, the Indian central Government as well as some state governments have expressedtheir support for bringing marginal lands, which cannot be used for food production, under cultivation for this purpose.

Jatropha curcas is a well established plant in India. It produces oil-rich seeds, is known to thrive on eroded lands, and torequire only limited amounts of water, nutrients and capital inputs. This plant offers the option both to cultivate wastelandsand to produce vegetable oil suitable for conversion to bio-diesel. More versatile than hydrogen and new propulsion systemssuch as fuel cell technology, bio-diesel can be used in today’s vehicle fleets worldwide and may also offer a viable path tosustainable transportation, i.e., lower greenhouse gas emissions and enhanced mobility, even in remote areas. Mitigation ofglobal warming and the creation of new regional employment opportunities can be important cornerstones of any forwardlooking transportation system for emerging economies.

Keywords: Sustainable transportation; India; Wasteland; Jatropha; Bio-diesel; Employment; Development, Renewable energy.

1. Introduction. Global search for alternative fuels

Today’s transportation services in industrialized countriesare primarily based on fossil fuels, especially crude oilderivatives. The spread of this fossil-energy-intensiveapproach to developing countries and economies in transi-tion with large populations may be constrained by limitedresource availability and concerns about environment andhuman health. The transport sector is emerging as the larg-est consumer of liquid fuel worldwide. Strategic think-tankalliances have been formed between the automobile andenergy industries, particularly in industrialized countries,to develop future transportation concepts and fuel options.The German transport energy strategy has identified hydro-gen and methanol as the most promising alternativefuel options for the future German transportation network.However, the technological challenge of bringing fuel-cellvehicles to the market as well as producing methanol orhydrogen from renewable resources in a cost-effetive wayhave so far prevented this promising option from being

introduced into the market. The increases in efficiency andperformance of automobile engines as well as hybrid elec-tric drive systems that are now on the verge of commer-cialization have set a very high barrier to fuel cell systems.

Economic conditions and resource availability in develop-ing countries are considerably different from those in in-dustrialized countries. Existing vehicle fleets in developingcountries primarily rely on conventional combustion engines,generally with an extraordinarily long service life, resultingin low average efficiencies and a high level of emissions. Inurban areas, vehicle emissions and their consequences forhuman health have become urgent problems, while in remoteregions, fuel distribution remains a challenge. Several coun-tries in the tropics also suffer from limited financial meansto maintain a state-of-the-art vehicle fleet and quality fuelproduction and distribution systems. On the other hand, theseregions often enjoy abundant sun light, that can be usedto generate both electric and thermal power, as well as forcultivating biomass. However, in many tropical regions landdegradation and soil erosion have been identified as majorthreats to existing land-use patterns. We discuss here abiofuel production option that simultaneously addressesdiverse problems in the tropical regions mentioned abovetaking advantage of the warmer climate prevailing there.

General guidelines on sustainable development have beenoutlined in Agenda 21 (UN, 1992), adopted by the United

George Francis and Klaus Becker are researchers at the Department ofAquaculture Systems and Animal Nutrition, Institute for Animal Productionin the Tropics and Subtropics, University of Hohenheim, Stuttgart, Ger-many. E-mail: [email protected], [email protected].

Raphael Edinger, of Aichtal, Germany, is a guest lecturer at the Univer-sity of Hohenheim. E-mail: [email protected].

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George Francis, Raphael Edinger and Klaus Becker / Natural Resources Forum 29 (2005) 12–24 13

Nations Conference on Environment and Development(UNCED),1 and concrete approaches to energy sustainabilityhave been defined in the Kyoto Protocol. Three conceptscan be extracted from these documents that relate closelyto a discussion of sustainable transportation:

• Secure and economically viable energy supply;• Climate and soil protection; and• Social development and equity.

Tying these three concepts together, the production ofbiofuels from eroded soils has found a place in the agendaof academic and business think tanks on sustainable devel-opment. This article outlines the perspectives, challenges,and limitations of Jatropha curcas, a suitable biomass plant,and discusses the economic and ecological context of real-ising this approach in India.

2. Context for promoting sustainable transportationin India

2.1. Population growth, economic progress and thechanging profile of the transport sector

India is home to over a billion people, about one-sixth ofthe world’s population. The population continues to grow at1.93% per annum, which is well above the global average(India, 2001a). The population of India has nearly tripledin the last 50 years, from 361 m in 1951 to 1.027 bn in 2001.The country’s economy has also been growing rapidly inthe last decade, with real GDP growth rates remainingconsistently over 5% (India, 2004). The contribution of the

1 Held in Rio de Janeiro in June 1992.

Figure 1. Changes in the Indian gross domestic product in 1993–1994 prices, in billions of US dollars (US$1 = Rs 46).Source: India (2004).

various sectors to GDP has changed dramatically over thelast 50 years (Figure 1), pointing clearly to a paradigm shiftin its developmental pattern towards high resource use.

Economic progress and the resultant increased demandfor transportation have been driving the demand for auto-mobiles. In the past 10 years of beginning economic liber-alization and high GDP growth rates, total transport demandhas been growing at about 10% per year. Currently, about800 billion freight km and 2,300 billion passenger km aredelivered by the transport system (India, 2002). Trafficpatterns have changed over the last five decades with a sig-nificantly increased use of roads compared to other meansof transport (e.g., rail, ship), with the percentage of freightand passenger transport by roads increasing to 60 and 80respectively in 2001 compared to 10 and 25 in 1951.

The number of vehicles on Indian roads has increasedrapidly over the last decade from 20 million in 1991 toabout 50 million in 2000a (Figure 2).

According to India Vision 2020 (India, 2002), a docu-ment issued by India’s Planning Commission, calculatingfrom current growth rates, two-wheeler ownership in citieswith more than 100,000 inhabitants is likely to rise from102 to 393 per 1,000 people in the next 20 years, while thenumber of cars would increase from 14 to 48 per 1,000.India is projected to become the third largest consumer oftransportation fuel in 2020, after the USA and China, withconsumption growing at an annual rate of 6.8% from 1999to 2020.

2.2. The energy challenge: India’s demand and supplyof crude oil

India’s economy has often been unsettled by its need toimport about 70% of its petroleum demand (India, 2004)from the highly unstable and volatile world oil market.This problem looks likely to become aggravated with the

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14 George Francis, Raphael Edinger and Klaus Becker / Natural Resources Forum 29 (2005) 12–24

Figure 2. Growth in the number of vehicles compared to increase in per capita net national product give clues to possible future change patterns.Source: India (2004).

Figure 3. Forecast of oil production, consumption, number of vehicles and transport oil consumption in India.Source: International Energy Agency (2002).

foreseen increases in consumption and demand (Figure 3).According to a study by British Petroleum, even today,68% of Middle East crude oil export is consumed in theAsian countries with merely 32% exported to Europe,Africa and America (BP, 2004). Considering the forecasteconomic development of Asia as well as the not yetsaturated energy markets of North and South America andEurope, conflicts of distribution are likely in coming yearsbetween the US and European countries versus the devel-oping nations on the one hand, and between the Asiancountries themselves on the other. In the face of shrinkingglobal crude oil reserves, rising demand may raise crudeoil prices significantly and set the Indian national import/

export balance under pressure. The current dramatic pricemovements in the international crude oil markets confirmthese concerns.

India’s yearly oil import bill, currently about US$17–18billion (India, 2004) is projected to increase manifold until2030. In view of the current uncertainties in the world oilmarket, any prediction of the foreign exchange outflows islikely to be inaccurate. What is certain, however, is that theoil import bill will continue to be an enormous burden onIndia’s balance of payments. Thus energy, and especiallyoil security, has become a key issue for India, resultingin recent policy initiatives by the Government in the areaof biofuels.

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George Francis, Raphael Edinger and Klaus Becker / Natural Resources Forum 29 (2005) 12–24 15

Figure 4. Energy related CO2 emissions of the largest emitters in the world.Sources: UN (2004), International Energy Agency (2002).

2.3. Air pollution and legislative approaches

Vehicle emissions are a rapidly growing contributor to theincrease in atmospheric greenhouse gas levels and urbanair pollution. According to the World Energy Outlook 2002(IEA, 2002), per capita emissions of OECD and transitioneconomies are projected to reach 13 tons and 11 tons respect-ively in 2030. India’s per capita CO2 emission is projected toincrease to 1.6 tons by 2030. India’s huge population, how-ever, aggravates the net emissions into the atmosphere. Evenwith a per capita CO2 emission of only one ton per year,India is already the world’s fifth largest emitter (Figure 4).

In Indian cities, in line with worldwide trends, thetransportation sector is becoming the major source of airpollution. The rapid growth of the sector in conjunctionwith numerous factors, such as: the high vehicle densityin Indian urban centres; a predominance of two-stroketwo-wheelers; older and inadequately maintained vehicles;and low quality fuels, have resulted in a volatile situationwith regard to air pollution in major cities. The number ofvehicles in the capital city of New Delhi increased 15 timesover the past 3 decades (currently about 3 million vehiclesfor close to 14 million people) and the share of motorvehicles in air pollution increased from 23% in 1971 to73% in 2001 (India, 2004). The projected growth of thetransport sector is set to exacerbate the pollution problem(Figures 5 and 6).

The transport sector as a major consumer of oil andemitter of atmospheric pollutants has attracted the mostregulatory efforts towards reducing emissions and promot-ing alternative fuels. The dramatic pollution situation inNew Delhi has resulted in a ban on diesel driven com-mercial carriers within the city limits. In Europe, vehicle

manufacturers have made a commitment to reduce averagevehicle emissions to 140 grams carbon dioxide per kmby 2008. The European Union aims to install legislationenforcing a 120 gram limit by 2012 if vehicle manufac-turers fail to make voluntary commitments. The EU targetfor introducing alternative and renewable fuels is shown inTable 1. These targets have stimulated European researchand development activities for alternative fuel productionand conversion technologies and established a congenialclimate for private investment. In Germany, the bio-dieselindustry was encouraged to intensify activities, and newplayers, especially in the waste wood and biomass conver-sion sector, have entered the process of technological de-velopment aiming at market introduction of their biofuelsin cooperation with automotive and energy companies.

Increasing greenhouse gas emissions and deforestationare considered to have contributed to the increased fre-quency of natural disasters that cost the world US$60 bil-lion during 2003 (Munich Re, 2003). Weather relateddisasters rose dramatically between 1993–1997 and 1998–2002, from an annual average of 200 to 331 major eventsper year (IFRCS, 2003). Population growth and unequalsocial development have exacerbated the vulnerability ofour societies to the fragility of the world’s climate systemand the impacts of natural events.

2.4. New vehicle technologies versus new fuel options

To make transportation less energy intensive and more eco-friendly, there are principally two solution paths that couldbe followed in parallel. Firstly, increases in energy effici-encies can be expected from: advanced internal combustionengines with direct-injection technologies; vehicles using

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16 George Francis, Raphael Edinger and Klaus Becker / Natural Resources Forum 29 (2005) 12–24

Figure 5. Forecast of total and transport related CO2 emissions and their rate of growth.Source: International Energy Agency (2002).

Figure 6. Current and projected atmospheric emissions in India under two scenarios.Source: India (2002).

Table 1. Future market share targeted for selected fuels byEuropean Union (%)

2005 2010 2020% % %

Biofuels 2 5.75 8Hydrogen 0 0 5Natural gas 0 2 10Total 2 7.75 23

systems may be introduced in future generations of vehicles.Selecting appropriate fuels and fuel production technologiesare a vital prerequisite for designing a concept for futuretransportation systems, and for the competitiveness of bothenergy and automobile companies. Fuel cell vehicles pow-ered with hydrogen have emerged as the favourite long-term solution for the automobile industry. However, massmarket introduction and penetration of fuel cell vehicles isnot likely to occur before 2015. Even after market intro-duction of fuel cell vehicles, biofuels — in pure form orblended with conventional fuels — are likely to be used forthe coming decades to run the existing fleet of internalcombustion vehicles.

lightweight materials; advanced electronic motor manage-ment; and hybrid drive systems; as well as improvementsin aerodynamics and rolling resistance. Secondly, new drive

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George Francis, Raphael Edinger and Klaus Becker / Natural Resources Forum 29 (2005) 12–24 17

Table 2. Wasteland area in India that could be partially or fullycultivated with Jatropha (in million ha)

Category Total % of totalwastelands geographical

area covered

Gullied and/or ravined land 2.1 0.65Land with or without scrub 19.4 6.13Shifting cultivation 3.5 1.11Underutilised/degraded/notified forest land 14.06 4.44Degraded pasture/grazing land 2.6 0.82Degraded land under plantation crop 0.58 0.18Sands (inland and coastal) 5.00 1.58Mining/industrial wasteland 0.13 0.04Barren rocky/stony waste/sheet rock area 6.46 2.04Steep slopes 0.77 0.24Other 9.25 2.94Total wasteland area 63.85 20.17

Source: India (2000).

Figure 7. Projections of total populationa, population density, andavailability of cultivated land for India.

Sources: India (2004), UN (2002).Note: a According to the medium fertility scenario projected by the

United Nations.

Biofuels will, in fact, play a significant role in offeringa short- and medium-term solution if projected emissiontargets are to be adhered to. Conventional vehicles can beoperated by blending biomethanol, bioethanol or bio-dieselfrom 3–20% with conventional gasoline and diesel fromcrude oil. This approach may help to establish a market forrenewable fuels since no new refuelling infrastructure isnecessary and the fuel is compatible with today’s vehiclefleet. This would be a particularly attractive strategy for em-erging developing countries, such as India, as no additionalcost commitments are required on the infrastructure side.

2.5. Land degradation is threatening food security

The majority of India’s population lives in rural areas andis dependent on land for its livelihood. Agriculture pro-vides direct employment to 57% of the Indian population(India, 2004). About 35% of the total population of thecountry still falls under the poverty line, however, the sec-tor remains largely neglected in terms of new investments.The current total annual investment in agriculture in Indiais below 2% of GDP (India, 2004). Improper land use andpopulation pressure over several years have resulted inextensive degradation of agricultural land in the country(see Table 2). The area of land affected by some form ofsoil degradation has increased from about 112 million hain 1950 to about 174 million ha in 2000 (India, 2000).Table 2 shows total area and percentage of land that hasbeen classified as severely degraded and lying idle byIndia’s Department of Land Resources (India, 2000).

The per capita availability of land declined from 0.89 hain 1951 to 0.3 ha in 2001 and the per capita availability ofagricultural land declined from 0.48 ha in 1951 to 0.14 hain 2001 (India, 2004). The trend of increasing population(Figure 7) and declining available agricultural land leavesno other option but to reclaim degraded lands for product-ive use.

3. India’s strategy on biofuels and land recovery

The Indian Government regards biofuels as a feasibleoption for augmenting future fuel supply. The document,India Vision 2020 (India, 2002), presented by the PlanningCommission as a framework for policy planning in thecoming decades, mentions the potential of biofuels in gen-eral and specifically refers to plantations of Jatropha curcasto produce large quantities of bio-diesel. According to thisdocument, cultivation of 10 million ha of this crop couldgenerate 7.5 million metric tons of fuel annually, whilegenerating year-round employment for 5 million people.

The Government has already successfully implementedan ethanol doping programme for gasoline in nine states.Legislation was established mandating the blending of5% ethanol into the petrol from 30 September 2003 in ninemajor sugarcane growing states (Andhra Pradesh, Gujarat,Haryana, Karnataka, Maharashtra, Punjab, Tamil Nadu,Uttar Pradesh and Goa) and the four Union Territories ofDaman and Diu, Dadra and Nagar Haveli, Chandigarh andPondicherry. The measure is soon to apply to the whole ofIndia, showing the Government’s seriousness in enlargingthe market share of biofuels.

Taking into account the multiple benefits of large-scalebio-diesel production from Jatropha plantations in wastelandregions, the Government has announced a ‘National Mis-sion on Bio-diesel’ that is to be implemented on an areaof 400,000 ha over the next five years (India, 2003a). Asa step towards a mandatory legislative framework, theGovernment also intends to initiate action towards the issueof a notification to blend 5% bio-diesel with petro-dieselin 10% of the districts in the country from 2005 onwardssubject to the availability of bio-diesel (India, 2003b). Thethen Minister of State for Petroleum and Natural Gas hasbeen quoted in news reports as saying that the Government

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18 George Francis, Raphael Edinger and Klaus Becker / Natural Resources Forum 29 (2005) 12–24

aims at commencing implementation of blending up to 20%bio-diesel with diesel by the year 2011–12.

The Government of India has also made an effort toinclude major oil companies (where they are major share-holders) in the planning process. Indian Railways (also fullyowned by the Indian central Government) has expressed aninterest in replacing 5% of its total diesel consumption (about1,400 tons per year) with bio-diesel. Towards this venture,Indian Railways is partnering with a major mineral oil com-pany for the supply of the bio-diesel fuel, and has offeredrailway lands for the cultivation of oil bearing trees.

4. A concept for regional transportation,soil protection, and economic development

4.1. Jatropha curcas — characteristics of the ‘energy’plant

Jatropha curcas,2 belonging to the family Euphorbiaceae,is a low-growing tree, native to South America, but widelycultivated also throughout Central America, Africa and Asia.Jatropha, which is not eaten by animals, is a vigorous,drought- and pest-resistant plant that is planted in tropicalcountries principally as a hedge, protecting cropland fromfreely ranging cattle, sheep and goats. India already has ashortage of edible oil and cannot afford to divert any of itsexisting harvest of vegetable oil for bio-diesel production.However, inedible oils produced from trees such as Jatrophacurcas, that can grow on barren, eroded lands, under harshclimatic conditions, could be an ideal source for bio-dieselunder present circumstances. The popularity of Jatrophais also based on the use of its oil and other derivatives,although limited, for medicinal purposes and the manu-facture of soap. Jatropha is unique among renewable energysources in terms of the number of potential benefits thatcan be expected to result from its widespread cultivation.Its cultivation requires simple technology, and compara-tively modest capital investment.

The seed yield reported for Jatropha varies from 0.5 to12 tons/year/ha — depending on soil, nutrient and rainfallconditions — and the tree has a productive life of over30 years. An average annual seed production of aboutfive tons/ ha can be expected on good soil when rainfall is900–1,200 mm. The seeds contain about 30% oil that canbe converted into bio-diesel by a process called trans-esterification, in which a simple alcohol (e.g., methanol)replaces glycerol from the vegetable oil molecules (theseare triglycerides, i.e., three molecules of fatty acid moleculesare attached to a glycerol molecule). The suitability of theJatropha seed oil for transesterification into bio-diesel hasalso been clearly demonstrated (Foidl et al., 1996; Eisa,1997; Vaitilingom and Liennard, 1997; Zamora et al., 1997).

The process uses an alkali (potassium or sodium hydroxide,i.e., KOH or NaOH) or an acid (hydrochloric acid or sul-phuric acid, i.e., HCl or H2SO4) as catalysts, and requiresadding about 15% by weight of simple alcohol, e.g., metha-nol. Ethanol can also be used, which has the advantage thatit is also obtained from natural raw materials and thereforeis renewable and CO2 neutral. The yield of bio-diesel isabout 92% of the initial weight of the Jatropha oil (Foidlet al., 1996). The physical and chemical properties of bio-diesel produced from Jatropha oil fulfil the official inter-national standards for the product (Table 3).

While the engine performance of bio-diesel is generallycomparable to that of diesel from fossil fuel, bio-diesel hasbeen reported to decrease emission of a variety of pollut-ants (Table 4).

Life-cycle carbon dioxide emission has not yet beenmeasured for Jatropha curcas. It has, however, been shownin the United States that the use of soy bio-diesel can re-duce life-cycle emissions of CO2 and SO2 by 80 and 100%respectively as compared to petro-diesel (USDA/USDOE,1998). The same study has shown that in soybean bio-diesel production in the US, every unit of petroleum energyconsumed produces 3.37 units of bio-diesel. The 80%

Table 3. Characteristics of Jatropha bio-diesel compared toEuropean specifications

Characteristic Jatropha European Remarksa

bio-diesel standard

Density (g cm−3 at 20°C) 0.87 0.860–0.900 +Flash point (°C) 191 >101 +Cetane no. (ISO 5165) 57–62 >51 +++Viscosity (mm2/s at 40°C) 4.20 3.5–5 (40°C) +Net cal. val. (MJ/L) 34.4 – –

(or 39.5 MJ/g)Iodine No. 95–106 <120 +Sulphated ash 0.014 <0.02 +Carbon residue 0.025 <0.3 ++

Sources: Gübitz et al. (1999) and authors’ own data.Note: a + indicates that Jatropha performs better than the European stand-ard for diesel.

2 Note: Greek: jatros — physician and trophe — food.

Table 4. Emission characteristics of soy bio-diesel compared topetro-diesel

Type of emission Soy-bio-diesel emissions as% of petro-diesel emissions

Total unburned hydrocarbons 7%Carbon monoxide 50%Particulate matter 70%NOx 113%Sulphates 0%Polycyclic aromatic hydrocarbons (PAH) 20%NPAH (nitrated PAHs) 10%Ozone forming potential of exhaust 50%

Source: USEPA (2002).

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reduction in CO2-emissions has been calculated for bio-diesel produced from soybean oil from intensive agricul-ture (consuming about 75 litres of oil and 125 kg of chemicalfertilizers per ha as well as herbicides and insecticides).The life-cycle carbon dioxide emissions resulting from theproduction of bio-diesel from low-input, no-tillage, perennialJatropha plantations (no application of chemicals foreseen)would be much lower and is likely to be less than 15%compared to petro-diesel.

The byproduct from Jatropha oil extraction is a nutrientrich seed cake, containing a large amount of high qualityproteins (Makkar et al., 1998). Extracted Jatropha kernelmeal contains about 61% crude protein compared to about45% in soybean meal. Although the roasted seeds of certainJatropha varieties can be eaten, the presence of varioustoxins (phorbol esters, trypsin inhibitors, lectins, phytates)render the raw seed cake from several other varieties un-suitable for human consumption or as animal feed. Phorbolesters are the most potent among these toxins. The seedcontent of phorbol esters varies among different Jatrophacultivars — ranging from undetectable in the Mexican ‘non-toxic’ varieties (of which the roasted seeds are eaten byhumans) to over 6 mg per g kernel in a toxic variety fromIndia. However, the raw seed cake is valuable as organicmanure3 (it has more nutrients than both chicken and cattlemanure) and would simultaneously serve as biopesticide/insecticide due to the presence of potent but bio-degradabletoxins, such as phorbol esters,4 adding to its value. Theleftover shell also constitutes high energy raw material(19 MJ/kg), which could be used separately.

4.2. Requirements for large-scale Jatropha plantation

4.2.1. Cultivation and seed productionDespite numerous projects investigating the use of Jatrophaplantations for various purposes in several countries, reliablescientific data on its agronomy are currently lacking. Thereis considerable scope for the development of technology tooptimize production. As Jatropha is still a wild plant, carefulselection and improvement of suitable germplasm is neces-sary before mass-production can be realised. Comprehen-sive research and experimentation is also needed to calculateinput/output balances of plantations in different climate/soil conditions in order to estimate long-term productivityunder different conditions. Jatropha exhibits great variabil-ity in productivity between individual plants. Thus, annualseed production per plant can range from about 200 g tomore than 2 kg. Decline in productivity has been reportedas plantations age (Sharma et al., 1997).

Agronomic conditions, such as optimum soil texture,amounts of water, spacing, pruning intensity and micro-

and macro nutrients required, need to be assessed in bothpilot and large-scale plantations. The biological require-ment of the closely related castor seeds could provide anestimate of the requirements for Jatropha seeds. Jatrophaplants have been found to respond better to organic manurethan to mineral fertilizers. Some of this need could be sat-isfied by ploughing back the fruit pulp, pruned matter etc.Jatropha has also been reported to develop a symbiosiswith the root fungus, Mycorrhiza, which might result inincreased efficiency in assimilating otherwise unavailablenutrients, particularly phosphate.

In order to involve local communities and generate short-term financial returns for them, it is advisable to plan forsome intercropping with shade loving annual or perennialvegetables, such as red and green peppers, tomatoes, grassesetc., as soil conditions may permit. In view of this, spacingbetween plants will be critical and should be taken intoaccount from the very beginning.

4.2.2. Oil extraction and production of bio-dieselThe infrastructure for processing Jatropha should prefer-ably be set up in a decentralized manner. Small-scale ex-pellers of up to four to five tons/day capacity are availableon the Indian market. For better acceptance of prospectiveJatropha cultivation among farmers, it is important thatcollection centres are available within easily reachable dis-tances and at reduced transportation cost. Seed collectionand oil pressing centres should be located close to the pro-duction sites to encourage investment in remote areas andensure that the seed cake by-product can be redistributedlocally as bio-fertilizer and, in the event that detoxificationbecomes viable, as animal feed.

Transesterification technology is also commercially avail-able, as is equipment that can be easily adapted to Jatrophaoil production (Foidl et al., 1996). Partnership with the oilindustry may be needed to formulate and evaluate therequired fuel standards, provide for storage and set updistribution facilities. Jatropha production could offer anew commercial activity for mineral oil firms that wish todiversify their portfolio to include biofuel processing anddistribution, and blending fossil fuels with biofuels.

4.3. Indicative economic analysis of the Jatropha systemin the Indian context

A preliminary economic analysis of the production systemgives an insight into the potential for setting up Jatrophacurcas plantations on wastelands for large-scale bio-dieselproduction. The estimates are based on the productivity ofplantations on degraded and currently unusable land withpoor soils. Such land is without opportunity cost at present,as it cannot be used for other agricultural purposes. Theestimates are presented in Tables 5–7.

The report of the committee on development of biofuel(India, 2003a) of India’s Planning Commission envisagesthe setting up of large seed-processing units with a capacity

3 It contains 5.7–6.5% N, 2.6–3.0% P2O5, 0.9–1.0% K2O, 0.6–0.7% CaOand 1.3–1.4% MgO.4 Phorbol esters of Jatropha curcas decompose completely within sixdays (Rug and Ruppel, 2000).

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Table 5. Indicative cost-benefit analysis of Jatropha plantations over a productive period of 30 yearsa

Item Value Remarks

Total Jatropha plants per ha 1,200 Space occupied by each plant: 2.9 m × 2.9 mAnnual yield of dry seeds per plant (kg) 1.5 kg With minimal inputs from year five onwardsTotal annual yield per ha from year 5 on 1,800 kg 444 kg in year 1; 1,111 kg, yr 2; 1,333 kg, yr 3; and 1,556 kg in year 4Price of dry seeds per kg (US$) US$0.11Total selling price per ha per year (US$) US$198Additional income from vegetable US$109 US$43 and US$65 during years 3 and 4

intercropping (US$) starting from year 5Employment generation per ha 200 person days during the first year and 50 person days thereafter for 29 yearsEstablishment cost per ha. (US$) US$435 during year 1Maintenance per ha US$109 per year from year 2 for 29 yearsShare of unskilled labour costs (US$) US$261 during year 1 and US$65 during the subsequent 29 yearsPresent value of life cycle costs/ha (US$) US$1,459Present value of returns/ha (US$) US$2,313Net present value (US$) US$853 Assuming an interest rate of 10%Internal rate of return (%) 21.8 Rate of return at which net present value is zero

Note: a Assumed values are based on conditions of wasteland cultivation in India.

Table 6. Cost benefit calculations (in US dollars) for a small-scale bio-diesel production planta

Item Value Remarks

Jatropha oil inputs per year (tons) 2,000 Production from about 4,000 ha.Capital cost 340,870 Input from equipment makers.Purchase of raw material/year 815,528 2,000 metric tons at US$407.8b per t.Process cost per year 251,874 At US$126 per ton of Jatropha oil; input from industry sources and includes cost

of methanol, catalyst, energy, personnel, maintenance and capital investment costs;a full capacity utilization is assumed; each ton of bio-diesel requires about 70 kWhelectric power, about 15% by volume of alkaline methanol and 80 litres of water.

Total recurring cost per year 1,067,402 Sum of previous two.Output of bio-diesel (litres) 2,114,943 92% efficiency ((2000 × 1000/0.87) × 0.92)Cost per litre 0.50Selling price per litre L 0.53Total selling price 1,114,943Present value of life cycle costs 11,470,579 For a period of 30 years.Present value of returns 11,625,410 For a period of 30 years.Net present value 154,831 Assuming an interest rate of 10%.Internal rate of return (%) 16 Rate of return at which net present value is zero.

Notes:a Calculated for an annual processing capacity of 2,000 tons of raw vegetable oil.b At an actual extraction of 28% oil from Jatropha seeds, 3,571 kg of seeds would yield 1 ton of oil. At a cost of US$0.11 per kg of seed and aprocessing cost of US$19.6 per ton of oil, the cost per ton of oil to the bio-diesel refineries would be US$407.8.

of 7,500 tons of seeds per year, and centralized refinerieswith a capacity of about 100,000 tons of Jatropha oil peryear. While the large capacity may offer obvious eco-nomies of scale, we feel that a decentralized model wouldbe more beneficial in the long run. Decentralization wouldalso include other benefits, such as creating local employ-ment opportunities; making fuel supply widely availablethroughout the region; and facilitating easier local redistri-bution of by-products, particularly the seed cake. The modelpresented here therefore differs from that given in the afore-mentioned report.

The price of US$0.53 for one litre Jatropha bio-dieselgiven in Table 6 may be compared to the current price in

Table 7. Final selling price of bio-diesel after factoring in returnsfrom selling by-products

Item Value Remarks

Factory cost of one litre 0.53 From Table 6of bio-diesel (US$)

By-product glycerol (US$) 0.08 (0.095 l per l of bio-diesel,US$0.08 per l)

By-product seed cake (US$) 0.05 (2.1 kg per litre of bio-dieselat US$0.05 per kg)

Net cost per litre of 0.40 (0.53–0.08–0.05)bio-diesel (US$)

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Table 8. Some economic benefits of bio-diesel production from Jatropha seeds grown on wastelands in Indiaa

Year

2010 2020 2030

Wasteland to be cultivated (million ha) 0.4 2 10Production of bio-diesel (million tons/year)b 0.20 1.01 5.07Foreign exchange saving by fuel substitution (million US$/year)c 67 334 1,672Employment generation (man-days)d 200,000 1,000,000 5,000,000Savings of CO2 consumption by the use of the produced bio-diesel 0.5 2.7 13.4

as automobile fuel (million tons/year)e

CO2 sequestration in the biomass (million tons/year)f 0.9 4.6 22.9Possible income from CO2 reduction from emission trading (M US$)g 14.5 72.5 362.5

Notes:a Assuming current production patterns do not change.b Assuming production of 583 l per ha per year.c Assuming an average international price of US$45/barrel of crude oil.d Assuming average employment of one person for two ha.e Assuming that the end use of bio-diesel reduces life cycle CO2 emissions by 85% compared to use of petro-diesel and a production of 2.7 kg of CO2

per litre of diesel and a density of 0.87 for diesel.f Except seeds taking an average of 2.5 metric ton of biomass increment per ha per year containing 25% C thus sequestering 3.66 metric tons of CO2

per metric ton of C.g Calculating an average market value of US$10 per ton of CO2 in international carbon markets.

Germany for one litre bio-diesel from rapeseed of a0.55 atthe company gate. It should be noted that rapeseed cultiva-tion is substantially subsidized in Germany. The estimatedprice of Jatropha bio-diesel of US$0.53 may appear a bithigh, but this price should be weighed against the infertilityof the lands and the absence of any kind of subsidies forthe farmers. The profits from selling by-products, i.e., glyc-erine for industrial uses and seed cake as manure or animalfeed, can bring in additional profits for the producers andwould thus decrease the selling price of bio-diesel to anestimated US$0.40/l (see Table 7).

The challenges for research and technology develop-ment for improving the profitability and the acceptabilityof the system should not be underestimated at this stage.The net price of US$0.40/l for Jatropha diesel is still higherthan the basic price excluding tax for petro-diesel inIndia (about US$0.35). For market introduction of Jatrophabio-diesel, tax exemption would be necessary and wouldresult in loss of revenue for the Government of India ifthe product is marketed on a large scale. Taxes onpetroleum products, especially diesel, form an importantincome to India’s central Exchequer. For the financialyear 2002–2003, total sales of gasoline in India was US$5.9billion, which included US$3.4 billion in taxes for theGovernment; diesel sales totalled US$17.9 billion, out ofwhich the Government received US$5.9 billion in taxes(India, 2004).

India is likely to require about 5–6 million tons of bio-diesel in 2030, if 5% of the diesel used in transport is to bereplaced. This amount of bio-diesel can be generated from10 million ha of Jatropha plantations at current trans-esterification efficiencies, provided the production volumesper ha assumed in Table 5 are achieved. In Table 8, we

present an indicative cost-benefit analysis of such large-scale Jatropha bio-diesel production.

The multifaceted benefit potential of producing Jatrophabio-diesel from plantations on wastelands is obvious fromTable 8. The increase in price and quality of the reclaimedland, reduction of air pollution resulting from use of bio-diesel, and other related socio-economic benefits to the localeconomy are not factored into these calculations. Of greatsignificance is the fact that Jatropha bio-diesel productionactually generates employment for largely unskilled labour-ers and cash income in remote rural areas. It is emphasizedagain that the land foreseen for this purpose is currentlynot in use. Thus planting these areas to Jatropha would nottake away any land from producing food crops. It has alsobeen noted that Jatropha, despite having several toxins inits seeds and leaves, does not cause accumulation of toxinsin the soil or inhibit grass growth underneath its canopy.In addition, Jatropha plantations have been observed to befrequented by animals and birds; they can therefore increasethe habitat value of barren lands.

4.4. Financial requirements for setting up large-scaleplantations in India

The Government of India has invested considerable fundsin various afforestation programmes and is in the processof initiating a comprehensive programme for the greeningof India for livelihood security and sustainable develop-ment, covering 43 million ha (being the regeneration of15 million ha of degraded forests, and agroforestry on10 million ha of irrigated and 18 million ha rainfedlands) over 10 years envisaging an annual investmentof about US$1 billion (India, 2001b). A Central Planning

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Commission task force for assessing this initiative stated inits report that circumstances warrant legal, policy and socio-economic support to render maximum benefits to forestdwellers and farmers besides curtailing the import of forestproducts of Rs 8000 crore (about US$1.75 billion) annu-ally. For comparison, the investment required to establish10 million ha of Jatropha plantations is about US$5,435million versus the central Government’s planned invest-ment of about US$9,397 million in afforestation over thenext 27 years (India, 2001b) even if the investments remainunchanged at current levels.

Producing biofuel from eroded soils promises to achieveboth wasteland reclamation and fuel security goals and istherefore in line with the Government of India’s policy ofnational development. The investment required for settingup nurseries, seed collection centres, processing infrastruc-ture, and transesterification units could by and large comefrom the private, cooperative and corporate sectors, oncelegislative framework mandating the use of bio-diesel hasbeen put in place and the ecological and economic viabilityof the concept have been demonstrated. The indicative eco-nomic analysis provided above shows the economic potentialof the Jatropha system. Furthermore, the possibilities offeredby the clean development mechanism (CDM) of the KyotoProtocol could be utilized to elicit international fundingand further enhance the project’s cost-effectiveness.

4.5. Measures for sustainable Jatropha production

In summary, the following research and development effortsseem crucial to creating a sustainable and viable productionof Jatropha bio-diesel on eroded lands:

• Selective breeding to improve the existing germplasmof Jatropha curcas, and increase seed yield. A manifoldincrease in productivity has been achieved in many cultiv-ated plant species in the past. Currently cultivated varietiesof Jatropha are based on natural wild planting material,and it is estimated that appropriate selective breedingcould improve yields by 15–25%, to about 2,250 kg seedsper ha in the short term.

• Optimizing low-cost oil expulsion technology to reach a93–95% level of efficiency.

• Maximization of the transesterification efficiency andminimization of costs. Improvements in the catalyticprocess are possible; this would recover and reuse theexpensive catalyst.

• Design of low-cost, robust and versatile small-scale oilexpulsion and transesterification units.

• Raising the nutritional quality of the seed cake by-product to animal-feed grade, which would increaseits price. In the above scenario, yield would be about500 kg/ ha; the price of feed-grade seed cake would beabout Rs 8–10 (about US$0.2) per kg. Achieving suchproduction and sales would have dramatic consequencesfor the profitability of the Jatropha system.

Although every effort has been made in this researchto be realistic in calculating production and related costs,experience in several previous projects indicates that primarydata over a longer period of time from pilot ventures arenecessary to verify the model. A pilot study to evaluate theabove parameters is currently underway in India in coopera-tion with the Council of Scientific and Industrial Research(CSIR)/Central Salt and Marine Chemicals Research Insti-tute (CSMCRI), a major government research organization,and a multinational company, DaimlerChrysler, Germany.An energy input/output analysis on the plantations set upon wastelands in different climatic regions of India underthis project is expected to provide concrete data to enable acomprehensive energy budgeting of the activity.

5. Outlook

While Jatropha is seen as a very promising option forproducing biofuel from degraded areas, generating ruralemployment, increasing environmental quality and provid-ing primary energy carriers to energy deficient areas, theadoption and implementation of the concept have advancedcomparatively slowly so far. Barriers include:

• Insufficient information on its suitability for specificareas;

• Lack of species improvement through organized selec-tion and breeding programmes; and

• Limited agronomic studies on input responsiveness andproductivity under various climatic conditions, pathology,and economic studies on market potential, acceptabilityand applicability of Jatropha products.

The suitability of promoting Jatropha cultivation on acommercial basis on fertile land replacing other food andcash crops in the tropics has been questioned. Also, a com-prehensive economic evaluation of such an activity is notavailable in the literature. Less controversial and moredesirable would be the cultivation of Jatropha curcas ondegraded lands that currently cannot be used for agricul-ture, as well as utilizing Jatropha species that are availableas native plants in respective countries. Jatropha thriveson unproductive lands with limited water supply and poorsoil and could yield oil seed already during the first yearof cultivation, albeit on a small scale.

However, to be sustainable in the long term, any agricul-tural activity requires the acceptance of local farmingcommunities. The ability to generate income in the shortterm without insurmountable upfront capital investment andsubsequent expenditure (e.g., on fertilizer and pesticide) isa prerequisite in the case of the targeted farmers, who areoften extremely poor. Jatropha may be considered suitableunder these conditions as the plant is often known to farm-ers, and small to midsize oil production technologies areavailable on the market.

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There have been several previous initiatives to spreadJatropha cultivation in Africa, Asia and South America(an overview of various activities can be obtained fromthe website www.jatropha.de), but as mentioned above,the concept has not yet received an acceptance equal to itspotential (see Oppenshaw, 2000). However, the problemsof land degradation in combination with high energy pricesworldwide and energy security concerns in several coun-tries have focused renewed attention on Jatropha. Newinitiatives should carefully assess the lessons from the pastto avoid future pitfalls.

The following points based on past experience should betaken into account:

• Jatropha plantations have an advantage especially wheresoil quality is poor and barely sustains other crops;

• Bio-diesel would be more competitive for niche markets,e.g., infrastructurally remote regions with inadequate fuelsupply, such as far-flung islands, pollution-free zones etc;

• Decentralized production of bio-diesel with the requiredtechnical specifications should be considered;

• Along with the oil, other valuable by-products such asglycerine, high-protein seed cake etc. should be effect-ively marketed;

• There is a need to ensure participation of and financialbenefit for the local population in the regions of cultiva-tion; and

• Political support and a favourable policy framework couldenable market introduction.

The real bottom line for the spread of Jatropha bio-diesel would be its availability to consumers at competitiveprices and its trouble-free use in their automobiles. Cur-rently, favourable policy environments in many countriescould lead to legislation supporting the use of biofuels andprovision of tax benefits, at least during the initial stages,especially in view of the wider socio-economic and en-vironmental benefits. The document, India Vision 2020,states that: “The greatest advantage of biomass power andbiofuels is that they can generate tens of millions of ruraljobs and stimulate enormous growth of rural incomes,especially among the weaker sections. Therefore, thesestrategies should not be regarded from the narrow perspec-tive of energy alone, but from the wider perspective ofnational development” (India, 2002:74). The discussionand information presented above shows that large-scaleJatropha bio-diesel production on barren lands is one ofthe most practical options for increasing the share of biofuelsin transportation energy in India.

We conclude by quoting Reinhard Henning’s note inthe World Bank’s Indigenous Knowledge Notes (2002:4):“To summarise, the Jatropha system is characterised by themany positive ecological, energetic and economic aspectswhich are attached with the commercial exploitation of thisplant. The more this plant is exploited, the better for theenvironment and for food production”.

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