an overview of biofuel programme of government of nepal_nov 2009

7
112 RETSUD-09, 12-14 November 2009, Kathmandu, Nepal An Overview of Biofuel Programme Mr. Nawa Raj Dhakal a and Mr. Nirpesh Dhakal a a Alternative Energy Promotion Centre, P. O. Box 14237, Kathmandu. Khumaltar, Lalitpur, Nepal. Tel: +977-1-5539237, 5539390; E-mail: [email protected] ; [email protected] __________________________________________________________________________________________________________________ Abstract Biofuel is defined as solid, liquid or gaseous fuel derived from relatively recently dead biological material and is distinguished from fossil fuels, which are derived from long dead biological material. Two common strategies of producing biofuels as agrofuels are: to grow crops high in sugar or starch, and then use yeast fermentation to produce ethanol; and to grow plants that contain high amounts of vegetable oil, such as oil palm, soybean, algae, Jatropha, or Pongamia pinnata. When these oils are heated, their viscosity is reduced, and they can be burned directly in a diesel engine, or they can be chemically processed to produce fuels such as biodiesel. Jatropha is now gaining its popularity worldwide as one of the most prominent source of biofuel. Government of Nepal (GoN) announced the Biofuel Programme (Jaibik Indhan Karyakram), to be implemented through Alternative Energy Promotion Centre (AEPC), in the fiscal year (FY) 2008/09 (BS. 2065/66). The main activities under this programme are: formulation of strategy for promotion of biofuel, preparation of modern nurseries for Jatropha plantation, capacity building for Jatropha plantation, establishment of biofuel processing plants, carrying out pilot projects from biofuels, and some promotional activities. This programme is expected to establish partnership and coordination among different stakeholders in the sector, to create awareness in the general public, and to build a fundamental framework for the further development of biofuel sector in Nepal. GoN has already decided to continue the Biofuel Programme as one of the regular programmes of AEPC in the FY 2009/10 and thereafter. Key Words: Biofuel, Jatropha, biodiesel. ____________________________________________________________________________________________________________________ 1. BACKGROUND OF NEPAL’S ENERGY SCENARIO Nepal is one of the energy rich countries especially in terms of renewable energy resources like hydro power, solar energy, and biomass energy including bio-gas and liquid bio-fuels. But most of these resources still remain untapped. Nepal is a second richest county the World in water resources, after Brazil. Nepal’s theoretical and commercial potential of hydro-power is 83,000 MW and 42,000 MW respectively but our total installed capacity is only 634MW, i.e., only 1.5 % of the total commercial potential) of hydro-power [1]. On an average, Nepal receives very pleasant sunshine, i.e. 6.8 hours per day with the intensity of solar insolation ranging from 3.6 to 5.9 kW/sq.m./day [2]. About 25.4% or 36,360 km² of the country is covered by forest [3]. With the growing urbanization, the country generates tons and tons of municipal wastes; Kathmandu Metropolitan City alone generates 300 tons/day solid wastes, out of which 72% is the organic wastes [4]. Residues from the forests and the organic wastes can prove valuable for the generation of biomass energies. More than 80% of Nepal’s population does farming [5], most of them rear cattle, and the cattle dung is the best feedstock for the biogas production. Biogas can be produced from the organic wastes as well. Nepal’s energy consumption by fuel type consists of traditional fuel 86.8%, commercial fuel 12.66% (comprised of petroleum products 9.02%, coal 2.01% and electricity 1.63%) and renewable energy 0.54% [6]. There are no proven fossil fuel deposits available in the country and we are fully dependent on the imported petroleum products. About 40% of foreign currency reserves are required to import fossil fuels every year [7]. The data shows that oil demand and its import is increasing every year (Table-1). High Speed Diesel (HSD) is imported in large amount compared to other petroleum products and its import is increasing year by year with an average increase of 17276 kL/yr. Nepal being a developing country the energy consumption rate increases as a country steps forward for the development; then the demand of the HSD and other petroleum products will increase inevitably. A study from 1980s shows that some 286 species of oil-bearing indigenous varieties of plants (edible and non edible) were found in Nepal out of which non edible varieties can be proven suitable for the production of biodiesel [9]. We have rich soil for the cultivation of sugarcane which is being used for cane sugar production and the by-product from sugar industry can be used for the production of bio-ethanol. Various indigenous varieties of pine plant (producing resin) can substitute the kerosene to some extent. Dhakal N. R., Dhakal N. 2009. An Overview of Biofuel Programme. Proceedings of International Conference on Renewable Energy Technology for Sustainable Development (RETSUD-09); 12-14 November, 2009, Kathmandu, Nepal; pp. 112-118.

Upload: nawa-raj-dhakal

Post on 27-Apr-2015

447 views

Category:

Documents


2 download

DESCRIPTION

Paper published in the Proceedings of International Conference on Renewable Energy Technology for Sustainable Development (RETSUD-09); 12-14 November, 2009, Kathmandu, Nepal

TRANSCRIPT

Page 1: An Overview of Biofuel Programme of Government of Nepal_Nov 2009

112 RETSUD-09, 12-14 November 2009, Kathmandu, Nepal

An Overview of Biofuel Programme

Mr. Nawa Raj Dhakala and Mr. Nirpesh Dhakala

aAlternative Energy Promotion Centre, P. O. Box 14237, Kathmandu. Khumaltar, Lalitpur, Nepal.

Tel: +977-1-5539237, 5539390; E-mail: [email protected]; [email protected] __________________________________________________________________________________________________________________

Abstract Biofuel is defined as solid, liquid or gaseous fuel derived from relatively recently dead biological material and is distinguished from fossil fuels, which are derived from long dead biological material. Two common strategies of producing biofuels as agrofuels are: to grow crops high in sugar or starch, and then use yeast fermentation to produce ethanol; and to grow plants that contain high amounts of vegetable oil, such as oil palm, soybean, algae, Jatropha, or Pongamia pinnata. When these oils are heated, their viscosity is reduced, and they can be burned directly in a diesel engine, or they can be chemically processed to produce fuels such as biodiesel. Jatropha is now gaining its popularity worldwide as one of the most prominent source of biofuel. Government of Nepal (GoN) announced the Biofuel Programme (Jaibik Indhan Karyakram), to be implemented through Alternative Energy Promotion Centre (AEPC), in the fiscal year (FY) 2008/09 (BS. 2065/66). The main activities under this programme are: formulation of strategy for promotion of biofuel, preparation of modern nurseries for Jatropha plantation, capacity building for Jatropha plantation, establishment of biofuel processing plants, carrying out pilot projects from biofuels, and some promotional activities. This programme is expected to establish partnership and coordination among different stakeholders in the sector, to create awareness in the general public, and to build a fundamental framework for the further development of biofuel sector in Nepal. GoN has already decided to continue the Biofuel Programme as one of the regular programmes of AEPC in the FY 2009/10 and thereafter. Key Words: Biofuel, Jatropha, biodiesel. ____________________________________________________________________________________________________________________ 1. BACKGROUND OF NEPAL’S ENERGY SCENARIO Nepal is one of the energy rich countries especially in terms of renewable energy resources like hydro power, solar energy, and biomass energy including bio-gas and liquid bio-fuels. But most of these resources still remain untapped. Nepal is a second richest county the World in water resources, after Brazil. Nepal’s theoretical and commercial potential of hydro-power is 83,000 MW and 42,000 MW respectively but our total installed capacity is only 634MW, i.e., only 1.5 % of the total commercial potential) of hydro-power [1]. On an average, Nepal receives very pleasant sunshine, i.e. 6.8 hours per day with the intensity of solar insolation ranging from 3.6 to 5.9 kW/sq.m./day [2]. About 25.4% or 36,360 km² of the country is covered by forest [3]. With the growing urbanization, the country generates tons and tons of municipal wastes; Kathmandu Metropolitan City alone generates 300 tons/day solid wastes, out of which 72% is the organic wastes [4]. Residues from the forests and the organic wastes can prove valuable for the generation of biomass energies. More than 80% of Nepal’s population does farming [5], most of them rear cattle, and the cattle dung is the best feedstock for the biogas production. Biogas can be produced from the organic wastes as well.

Nepal’s energy consumption by fuel type consists of traditional fuel 86.8%, commercial fuel 12.66% (comprised of petroleum products 9.02%, coal 2.01% and electricity 1.63%) and renewable energy 0.54% [6]. There are no proven fossil fuel deposits available in the country and we are fully dependent on the imported petroleum products. About 40% of foreign currency reserves are required to import fossil fuels every year [7]. The data shows that oil demand and its import is increasing every year (Table-1). High Speed Diesel (HSD) is imported in large amount compared to other petroleum products and its import is increasing year by year with an average increase of 17276 kL/yr. Nepal being a developing country the energy consumption rate increases as a country steps forward for the development; then the demand of the HSD and other petroleum products will increase inevitably. A study from 1980s shows that some 286 species of oil-bearing indigenous varieties of plants (edible and non edible) were found in Nepal out of which non edible varieties can be proven suitable for the production of biodiesel [9]. We have rich soil for the cultivation of sugarcane which is being used for cane sugar production and the by-product from sugar industry can be used for the production of bio-ethanol. Various indigenous varieties of pine plant (producing resin) can substitute the kerosene to some extent.

Dhakal N. R., Dhakal N. 2009. An Overview of Biofuel Programme. Proceedings of International Conference on Renewable Energy Technology for Sustainable Development (RETSUD-09); 12-14 November, 2009, Kathmandu, Nepal; pp. 112-118.

Page 2: An Overview of Biofuel Programme of Government of Nepal_Nov 2009

113 RETSUD-09, 12-14 November 2009, Kathmandu, Nepal

Table-1: Imports of the petroleum products from the FY 2050/51 to 2064/65 (1993/94 to 2007/08 AD) [8]

Import of Petroleum Products {in KL except LPG, which is in MT}

Product FY BS (AD) MS HSD SKO ATF LDO FO LPG MTO

2050/51 (1993/94) 31,476 195,474 162,324 30,438 1,530 27,319 9,308 -

2051/52 (1994/95) 35,019 2,28,016 176,963 37,886 3,794 32,003 13,049 -

2052/53 (1995/96) 41,736 254,323 213,830 40,776 4,449 18,293 1,860 -

2053/54 (1996/97) 46,621 259,358 244,546 48,722 1,983 17,296 21,824 132

2054/55 (1997/98) 47,507 302,063 287,595 51,700 967 27,776 22,961 132

2055/56 (1998/99) 51,584 319,158 298,351 56,010 547 34,245 25,019 132

2056/57 (1999/00) 55,570 327,427 350,196 59,123 4,005 26,876 30,627 132

2057/58 (2000/01) 60,653 333,791 325,198 65,620 3,418 20,999 40,102 132

2058/59 (2001/02) 63,578 287,657 930,113 47,274 2,413 18,255 48,757 120

2059/60 (2002/03) 68,482 301,672 351,696 53,546 610 14,502 56,079 48

2060/61 (2003/04) 67,965 302,644 313,127 64,394 590 12,672 66,142 36

2061/62 (2004/05) 76,097 308,076 23,463 68,340 88 2,651 77,594 -

2062/63 (2005/06) 81,817 292,381 225,007 66,100 292 3,754 81,005 -

2063/64 (2006/07) 98,435 299,419 192,576 63,650 180 4,624 93,562 -

2064/65 (2007/08) 101,624 303,212 152,168 68,534 308 2,940 96,837 -

2. BIOFUELS IN NEPALESE CONTEXT Biofuel can be defined as solid, liquid or gaseous fuel obtained from relatively recently lifeless or living biological material and is different from fossil fuels, which are derived from long dead biological material [10]. As main occupation of the Nepalese is agriculture, these agro-fuels can contribute a lot in the rural income generation and as a whole it could be useful for uplifting country’s economy and for sustainable development of the nation. Developing bio-fuels as indigenous energy resource represents the most immediate and available response to at least five key challenges and opportunities: coping with depleting oil reserves; addressing the need for oil-importing countries to reduce their dependence on a limited number of exporting nations by diversifying their energy sources and supplies; serving an option for emerging economies in tropical regions to supply the global energy market with competitively priced liquid biofuels; meeting growing energy demand in developing countries, in particular to support development in rural areas; and fulfilling the commitments taken to reduce carbon-dioxide emissions as part of the battle against climate change actions that have embarked on a biofuel-driven model for economic development urging a need to evolve the right protocols and systems to plan and implement such initiatives in a sustainable manner.

This paper concentrates on liquid biofuels namely, ethanol and biodiesel. Both of these biofuels are new to Nepal’s energy sector. Although the GoN decided to go for blending 10% ethanol in the petrol in 2002, but this didn’t came into implementation due to various reasons. However, both the ethanol and biodiesel have good potential in Nepal. 2.1. Ethanol Ethanol is produced by yeast fermentation of the products from the crops with high sugar content (sugar cane, sugar beet, sweet sorghum etc), starch (corn/maize) or also from the cellulosic materials (woods, husks, etc). Ethanol can be used as a fuel for vehicles in its pure form, but it is usually used as a gasoline additive to increase octane and improve vehicle emissions [10]. Most attractive feedstock for ethanol fermentation is molasses which is the by-product of sugar industry. Nepal has good potential for sugarcane farming; especially the Terai region is suitable for this purpose. Sugarcane can be well adopted in rice field and rice covers 2,541,729 ha out of 3,091,000 ha of farm land [11]. Remaining 549,271 ha of land can be utilized for sugarcane to some extent considering other food crops. In FY 2005/06 about 2,462,574 MT of sugarcane was produced and productivity of sugarcane was 39.862 MT/ha, which had increased significantly from 24.265 MT/ha in FY 1985/86. Interestingly, only about 56% of sugarcane produced

Page 3: An Overview of Biofuel Programme of Government of Nepal_Nov 2009

114 RETSUD-09, 12-14 November 2009, Kathmandu, Nepal

is being brought to sugar mills and the rest is utilized by domestic and informal small-scale industries to produce different products. Total of around 98,461 MT of sugar was produced in FY 2005/06, i.e., about 42% of total installed capacity. As a byproduct of sugar mill about 43,760 MT of molasses was produced, i.e., only 46.38% of total production capacity [7, 12]. Nepal has 8 operating sugar mills out of the 25 registered, out of which, only four claim to have capacity to produce ethanol. Three claim that they can produce ethanol by the cracking method and one has already the facility of dehydration plant through the molecular sieve technology. Except one, all sugar mills are relying only on sugar molasses to produce ethanol. The total potential of ethanol production, at present is about 20,000 kL/year and the biggest sugar mill is having the production capacity of about 30 kL/day. The quality of anhydrous ethanol that can be produced by a biggest sugar mill is 99.8% v/v from the feedstock of rectified spirit 95% v/v [13]. However, there are 40 distilleries registered in government agency consuming ethanol. The supply of ethanol for fuel also depends on the demand of ethanol by these distilleries. From these figures it shows that there is a good future and resource potential to produce bio-ethanol from the existing sugar mills. Once the utilization of ethanol becomes popular in practice, utilizing other bio-products, which are financially and economically feasible without having impacts on food security and environment, will automatically increase the supply side of ethanol. 2.2. Biodiesel Biodiesel is produced from oils or fats using trans-esterification and is a liquid similar in composition to fossil/mineral diesel. Its chemical name is fatty acid methyl (or ethyl) ester (FAME). Oils are mixed with sodium hydroxide and methanol (or ethanol) and the chemical reaction produces biodiesel (FAME) and glycerol. One part glycerol is produced for every 10 parts biodiesel [10].

Figure -1: Chemical Equation for Trans-esterification Biodiesel can be produced from the plants that contain high amounts of vegetable oil, such as oil palm, soybean, algae, Jatropha, or Pongamia pinnata. When these oils are heated, their viscosity is reduced, and they can be burned directly, straight vegetable oil (SVO), in a diesel engine, or they can be chemically processed to biodiesel [10]. Jatropha curcas which can be easily cultivated in degraded lands, semiarid lands, waste lands, and marginal lands, is now widely gaining its popularity all over the world as a source of biofuel. Biofuel Programme of GoN is also specifically focused in Jatropha. Jatropha (local name- ‘Sajiwan’ or ‘Kadam’) is a drought-resistant perennial shrub growing well in marginal/poor soil. It is easy to establish, grows relatively quickly and lives, producing seeds for 50 years. It produces seeds with oil content from 30% to 48% [14]. The oil can be combusted as fuel without being refined or can be converted into biodiesel. It burns with clear smoke-free flame, tested successfully as fuel for simple diesel engine. The oil is also insecticidal. Jatropha plantation can be done by generative propagation (direct seeding) or vegetative propagation (cutting). Jatropha is found up to 1400 meters of altitude. It is reported from 64 districts of Nepal [15]. Not only biodiesel is proven important but also it’s by-products like glycerol and oil cake, can be very useful for household and commercial purpose. Glycerol has high commercial value in soap making, cosmetic industries like lotions, shampoo, beauty creams etc and also in pharmaceuticals - that can save our foreign currencies by reducing the import of such products. Oil cake can be used as organic manure and also in producing briquettes.

3. BIOFUEL PROGRAMME OF GOVERNMENT OF NEPAL

GoN announced Biofuel Programme (Jaibik Indhan Karyakram) in the fiscal year 2065/66 (2008/09), to be implemented through AEPC, for the promotion of biofuels, This programme focuses particularly on promoting Jatropha as a biofuel source including the biodiesel production from Jatropha oil and aims high for developing New Nepal. This is in response to the

issues like environmental degradation, loss of country’s economy for importing fossil fuel, energy crisis and oil shortage due to unpredictable price fluctuations in international markets. As shown in Table-1, HSD is one of the most consumed petroleum product in Nepal, this programme aims in replacing fossil diesel up to certain level (but the exact figure is to be decided yet!). Although it takes plenty of years to totally replace the fossil fuel but this programme has hope for the sustainable development and overall promotion of biofuel through partnership among different stakeholders and actors of biofuel sector.

Page 4: An Overview of Biofuel Programme of Government of Nepal_Nov 2009

115 RETSUD-09, 12-14 November 2009, Kathmandu, Nepal

3.1 Major Activities of Biofuel Programme The programme was initiated with the main objectives to pave a path for the sustainable promotion of biofuel in Nepal. The major activities to be carried out under this programme starting in FY 2008/09 were: formulation of strategy for promotion of biofuel, preparation of modern nurseries for Jatropha plantation, training/capacity building for Jatropha plantation, establishment of biofuel processing plants, carrying out pilot projects from biofuels, and promotional activities for biofuel. 3.1.1 Standing List and Call for Proposals To fulfill the obligations of GoN’s financial regulation and to get the real picture of organizations working in or interested to work in the biofuel sector, AEPC published public notice seeking applications from the interested organizations/firms with relevant documents. Out of 94 applications received during the due period, only 43 were selected for “Standing List”. Then sealed technical and financial proposals were called from the listed organizations for the implementation of planned activities [16]. 3.1.2 Strategy Formulation for Biofuel Promotion

Biofuel sector being a new sector in Nepalese context, development of strategy on biofuel is aimed to pave the way for the overall promotion and progress of this programme. In this regards AEPC formed a team of experts covering different disciplines relevant to biofuel sector, on the leadership of Prof. Dr. Riddhi Bir Singh (RECAST, TU), Biofuel Expert, to draft the strategy in overall aspects of biofuel. The team sketched a road map for the strategy on their assigned fields, which was later compiled into a single document [16]. The formulated document was later finalized with wider stakeholder feedback and endorsed through the Ministry (MoEST). The strategy focuses on the production and commercialization of the biodiesel and this strategy is expected to play vital role in developing policy of biofuel sector in the near future. 3.1.3 Establishment of Jatropha Nurseries For the mass cultivation of Jatropha, availability of healthy saplings is a precondition and, therefore, the programme supported for the establishment of more than 20 modern Jatropha nurseries through 12 different organizations and to produce more than 1.25 million Jatropha saplings (Annex 1) available to the interested Jatropha farmers, organizations; among all, most of the seedlings were distributed among the community forest groups and District Land Conservation Office. A 1-day workshop on different aspects of Jatropha Nursery Establishment was held in Butwal, beforehand.

3.1.4 Training on Jatropha Plantation Two batches of 3-day training of trainers (ToT) on Jatropha cultivation were organized and 57 trainers were trained on different aspects of Jatropha nursey, plantaion, post-plantation activities, biodiesel production etc at central level. Then those trainers served as resource persons for regional level trainings on Jatropha plantation organized to train prospective Jatropha farmers. Altogether 10 batches of 5-day Jatropha plantation trainings were conducted in 5 development regions, 2 batches in each region through 5 different firms and total 238 farmers got benefitted from these trainings (Annex 2). Training manual on Jatropha plantation has been published by consolidating the resources used in the ToT and Jatropha plantation trainings. 3.1.5 Establishment of Biofuel Processing Plant In this context, a biofuel processing plant has been simply defined as the establishment of devices whereby the Jatropha seeds can be expelled and the received oil can be trans-esterified into biodiesel. Initially, 5 processing plants were planned to be established in 5 development regions, one in each region, of Nepal. But after the discussion with the relevant stakeholders, it was decided to establish 2 processing plants only, mainly because of the feedbacks that there is no sufficient raw materials available. Two processing plants - each with capacity of 1000 litres/day and supplied from Best Engineering Technology (BET), Hyderabad, AP, India - have been established through two private organizations, one in Chitwan (central region) and Palpa (western region) each (Annex-3). Demonstration run of the plants has also been done by producing biodiesel form Jatropha seeds. But due to the unavailability of the Jatropha seeds, their operation is stopped after their installation and the entrepreneurs are looking for Jatropha seeds [17, 18, 19]. 3.1.6 Establishment of Quality Control Laboratory

Quality Control Laboratory (QC Lab) is necessary for the detection, analysis and to improve the quality of biodiesel produced from different biodiesel plants. Nepal Oil Corporation (NOC) holds the sole authority as importer, supplier & distributor of the petroleum products in Nepal and the commercialization of the biodiesel through blending with fossil diesel depends on the support from the NOC. AEPC intends to join hands with NOC to move forward with the establishment of QC Lab. Since NOC has already established its own big scale laboratory for the testing of the petroleum products and most of the properties of biodiesel are similar to diesel, therefore, cooperation with NOC would be

Page 5: An Overview of Biofuel Programme of Government of Nepal_Nov 2009

116 RETSUD-09, 12-14 November 2009, Kathmandu, Nepal

more practical and cost effective in this regard. At the same time, collaboration with other relevant partners namely Nepal Bureau of Standard Management and Renewable Energy Test Station is also sought. Preliminary discussions has already been done with above mentioned stakeholders with positive responses from all sides and some concrete and fruitful steps such as signing an MoU for the purpose are expected soon. 3.1.7 Conduction of Pilot Projects using Biofuel To bring Biofuel into life and to aware people about the successful use of biofuel, AEPC has planned to conduct pilot projects using biofuel. This activity was kept open i.e. interested firms could use biofuel (biodiesel or SVO) in any systems, in substituting fossil fuel, which comes in use in our day to day life. Because of the unavailability of Jatropha oil, less than expected proposals were received in this activity and AEPC has extended hands of partnership with four organizations (Annex-4). 3.1.8 Development of IEC materials To create public awareness and to disseminate information regarding biofuel and its progress, AEPC has decided to produce Information, Education and Communication (IEC) materials such as brochure, booklet, leaflet and audio-visuals. A brochure on Jatropha is published twice; some booklets and training manuals are also published while some others are still under way. 3.1.9 Additional Activities Some additional activities carried out under biofuel programme are briefly listed as follows: 1. Workshop on Strategy Formulation for Biofuel

Programme was conducted with the participation of relevant stakeholders (GOs, I/NGOs, entrepreneurs, research institutions) for activity planning of the programme.

2. Information on districtiwise distribution of Jatropha and other fuel crops collected from all District Development Committees through respective District Energy and Environmet Section/ Unit; a compilation report of thus collected information has been produced.

3. Department of Industrial Engineering/ Institute of Engineering, Thapathali Campus is carrying out a study on “Use of Jatropha Oil as Vehicle Fuel: A solution to the Present Fuel Crisis in Nepal” with support from AEPC. The main objectives of this task are to find out the properties of Jatropha oil and to test the

performance of engines with biodiesel blends [16].

4. Biofuel Programme, in collaboration with Bhairav Darshan Jatropha Energy Promotion Nepal, participated in RET Expo 2009 in Bhrukuti Mandap, Kathmandu, where various materials related to biofuel and Jatropha (such as Jatropha oil, seed, steam, Pine resin, Bioethanol from Pine resin, Castor oil, Jatropha Boucher, leaflet audio-visual documentary etc.) were exhibited and thousands of visitors observed the expo [16].

5. Biofuel Programme supported BDJEP-Nepal for

their two days Jatropha fuel promotion and awareness programme where use of Jatropha oil to run a vehicle from Palpa to Kathmandu. An interaction programme was held in Kathmandu, with participation of Minister for MoFSC, high ranking government officials, other stakeholders, and media persons. Jatropha Oil was used to run the Minister’s vehicle and the programme was well covered by different media, which helped in drawing the attention on biofuel of different corners of society [16].

6. AEPC supported Nepal Appreciative Inquiry

National Network for conducting an interaction programme in Dhangadhi accompanied with running vehicle using Jatropha oil with the participation of more than 150 participants from GOs, NGOs and different stakeholders [16].

7. AEPC supported Eco-Overlanders in association

with Kathmandu University and Campaign for Change Nepal for a trip from Kathmandu to eastern and western part of Nepal using “Curry Oil” (discarded cooking oil) as a vehicle fuel, which also contributed in the awareness creation [16].

3.2 Programme Budget and Expenditures The total allocated budget of the programme was NPR 50 million. But after getting the feedback from wider stakeholder consultation, total numbers of processing plants were reduced from 5 to 2 and establishment of QC Lab was also delayed to the next FY, which altogether reduced the allocated amount by NPR 16.5 million. So out of revised budget of NPR 33.5 million, the actual expenditure occurred for all the activities is NPR 24.721 million, that comes to about 74%.

Page 6: An Overview of Biofuel Programme of Government of Nepal_Nov 2009

117 RETSUD-09, 12-14 November 2009, Kathmandu, Nepal

4. ROLE OF BIOFUEL IN SUSTAINABLE DEVELOPMENT OF NEPAL There is a real opportunity to stimulate sustainable social, economic and environmental initiatives through the production of a clean, indigenous and renewable fuel where the Biofuel Programme is trying to hit. Cultivation of oil-bearing plants on waste lands (non agricultural), marginal lands or as living fences around field boundaries to protect crops can promote economic enterprises in rural areas and supply clean energy for illumination, cooking and motive power as well as organic by-products for crop growth. In this way, improvements in agricultural productivity, health and environmental protection are to be expected as well as improvements in the quality and stability of marginal land. In an economy dependent on imports, local fuel and fertilizer production can promote a national self-reliance as well as mitigating global carbon dioxide emissions by replacing fossil fuels and by storage of atmospheric carbon in the roots and woody stems of oil-bearing trees. Playing a vital role in the promotion of the biofuel by supporting various organizations and motivating them to sustain their activities and enhance their performance, Biofuel Programme looks for the sustainable development of the country. This programme carries out its activities through different organizations as it aims for self-dependency of those organizations in biofuel field. As a result, biofuel activities will step forward sustainably on a long run ultimately leading to the sectoral growth. It will be certainly helpful for creating employment at local level. This will obviously increase popularity of biofuel, which uplifts rural economy and minimizes country’s expenditure in importing fossil fuel, so that we can spend this saving in development works. In addition, use of the biofuel instead of the mineral fuel will be eco-friendly, cutting off the pollution and creating healthy environment. Cultivation of Jatropha in the barren lands, marginal lands, wastelands will create greener nation and can play vital role in reducing carbon emission, which will be helpful in reducing world’s most arising problem, i.e., global warming to some extent. Hence, this can fulfill the Kyoto commitment and enhance the national economy by earning foreign currencies through carbon credits. 5. CONCLUSION Bio-fuel Programme has encouraged the organizations working in this sector and biodiesel production has taken an initial step in Nepal, but there is a long and challenging way to go. The programme is striving to establish partnership and coordination among relevant stakeholders, to create awareness in the general public, and to build a

fundamental framework for the further development of biofuel sector in Nepal. Moreover, people who were destroying the Jatropha plants taking it as useless shrub are now creating awareness among their fellows about its importance in producing biodiesel, conserving environment, generating rural economy, and helping sustainable development of the nation. GoN has already decided to continue the Biofuel Programme as one of the regular programmes of AEPC in the FY 2009/10 and thereafter. 6. REFERENCES [1] http://www.globalpolitician.com/24203-nepal

[2] Renewable Energy Technology for Rural Development-03/

Renewable Energy in Nepal- Progress at a Glance from 1998 to 2003

[3] http://en.wikipedia.org/wiki/Geography_of_Nepal#Forests [4] www.env.go.jp/recycle/3r/en/asia/02_03-3/10.pdf [5] http://www.changemakers.com/es/node/20779 [6] WECS [2006] Energy Synopsis Report, Nepal 2006, Water

and Energy Commission Secretariat, Ministry of Water Resource, Nepal

[7] MOF [2007] Economic Survey, Fiscal Year 2006/07,

Ministry of Finance, Nepal [8] NOC, 2009. Nepal Oil Corporation (Import and Sales)

Retrieved from http://www.nepaloil.com/ (see: Import and Sales page)

[9] Singh, S.C., Singh, N. [Ed.] [1991] Non-conventional

Sources of Vegetable Oil [Bangladesh, Nepal and Pakistan]. Nepal Lithographing Co, Kathmandu

[10] http://en.wikipedia.org/wiki/Biofuel [11] http://www.viacampesina.org/main_en/index.php?option=co

m_content&task=view&id=331&Itemid=29 [12] Government of Nepal, National Planning Commission

Secretariat, Central Bureau of Statistics [2001]. Statistical Pocket Book Nepal 2001.

[13] Thakur, R. [2007] Studies on the Prospects and Potential of

Sugarcane Based Bio-ethanol Fuel in Nepal. A Masters Thesis Submitted to Institute of Engineering, Tribhuvan University, Nepal

[14] Trainers Mannual for the Trainning on ‘Production and

Processing of Jatropha curcas by AEPC. [15] Status Report on District Wise Distribution of Jatropha

curcas by AEPC. [16] AEPC e-Newsletter Volume 10, April 2009. [17] Final Report on Establishment of Biofuel Processing Plant

by HARC [18] Final Report on Establishment of Biofuel Processing Plant

by RMJKUP [19] Personal telephone communication with the entrepreneurs

(Mr. Tek Bdr. Thapa and Mr. Madan Bista) on 2nd October 2009.

Page 7: An Overview of Biofuel Programme of Government of Nepal_Nov 2009

118 RETSUD-09, 12-14 November 2009, Kathmandu, Nepal

7. ANNEXES (Information compiled from activity completion reports of Biofuel Programme, AEPC) Annex 1: Details of Jatropha Nurseries Supported under Biofuel Programme of AEPC

SN Name of Organizations Nursery Address Nursery

Area No of Jatropha

Saplings Produced Contact number Contact person

1 Manigram Agroforestry & Research Centre P. Ltd.

Aanandwan-2, Manigram, Rupandehi

3 Bigha 100,000 9847027132, 9747021722

Ram K. Karki, Tolakanta Basyal

2 Himalyan Agro Enterprises And Research Center Pvt.Ltd

Khairinitar, Tanahu 6 Ropanies 150,000 014670821, 9851090961

Tek Bdr. Thapa

3 Hill Development Council Aampipal VDC-9, Gorkha - 200,000 9841555984, Kashi R. Marahattha

4 Jaibik Urja Anusandhan Tatha Utapadan Udog

Chhatiwan -2 & Churiyamai, VDC-2 & 9, Makwanpur

10 Kattha 100,000 9841029887 Jang Bdr Bishwakarma

5 Bihani Nepal Chaughada, Hetauda-6,

Makwanpur 5 Ropanies 50,000 984218390,

9743010909 Bharat Sapkota, Raghab Neupane

6 Center For Environment & Tourism Development

Dharan-12, Bijayapur, Sunsari

4 Ropanies 200,000 9842025520, 025526637

Aanand Shrestha

7 Rama Enterprises P. Ltd Amarai VDC -6,

Arghakhanchi 4 Ropanies 100,000 9747014622,

4253517 Ganga Adhikari, Hom Lal Pandey

8 Crystal Bio Energy Nepal Ltd

Kolwi VDC-9, Bara 3 Kattha 20,000 9851041186 Ramesh Kumar Rai

Bharatpur VDC-3, Mohattari 4 Kattha 25,000 Damak-7, Jhapa 8 Kattha 50,000 Damak-19, Jhapa 3 Kattha 20,000 Lakkhanpur VDC-1, Jhapa 12 Kattha 50,000

Panchakanya -1, Teharathum 2 Ropanies 20,000

Tapeshwari VDC-1, Udayapur 10 Kattha 38,000

9 Bheksem Jadibuti Prasodan Tatha Suppliers P. Ltd.

Deudakala VDC, Bardiya 2 Hector - 9841638275, 9841593113

Deepak Shahi, Bhakta B. Shah

10 Resunga Madane Jadibuti Tatha Krishi Utpadan Prashodan P. Ltd.

Dovan VDC-9, Palpa 6 Ropanies 125,000 9741146657 Madan Bista

11 Earth multipurpose Farming Chitwan and Jhapa - Data not available 9741154989 Anant K Ghising 12 Siyaram Nursery Siraha - Data not available 9841202682 Tej Narayan Shah

Total 1,250,000+ Note: Organizations in SN 11 & 12 of above table only got partial support from AEPC. Annex-2: Details of Jatropha Plantation Trainings Supported under Biofuel Programme of AEPC

SN Name of Organization Address of

Organization Training Venue Development

Region Covered Total

Trainee

1 Renaissance Society Nepal J/V.C Himal Energy Consultant P. Ltd.

Balkot-2, Bhaktpur Lahan, Siraha & Itahari, Sunsari Eastern 60

2 Himalyan Agro Enterprises And Research Center P. Ltd.

Kalimati, Kathmandu Banepa, Kavre & Hetauda, Makwanpur

Central 46

3 Bhairab Darshan Sajiwan Urja Prabardhan Sanstha

Palpa, Tansen-6 Tansen, Palpa Western 43

4 Multiscope Consultancy P. Ltd. Buddhanagar-10, Ktm Nepalgunj, Banke Mid-Western 43 5 Community Rural Development Society Darchula Sunderpur, Kanchanpur Far-Western 46

Total 238 Annex-3: Details of Biodiesel Processing Plants Established under Biofuel Programme of AEPC

SN Name of Organizations Address Processing Plant Site Plant

Capacity Contact No. Contact Person

1 Resunga Madane Jadibuti Tatha Krishi Utpadan Prashodan P. Ltd.

Tamghas, Gulmi Jhumsa, Dovan, Palpa 1000 ltr/day 9741146657, 9847122812

Madan Bista

2 Himalyan Agro Enterprises & Research Center P. Ltd.

Kalimati, Kathmandu

Dhanusa, Ramnagar 1000 ltr/day 014670821, 9851090961

Tek Bdr. Thapa

Annex-4: Summary of Organizations involved in Conduction of Pilot Projects Using Biofuels

SN Name of Organizations Address System Used Project Site Contact No. Contact Person

1 Bhairab Darshan Sajiwan Urja Prabardhan Sanstha

Palpa, Tansen-6 Water Pump Set & Jatropha Oil Tukki; Tractor & Diesel Pump

Palpa 075-522687, 9857060335

Ram Bhadur Rawat

2 Renaissance Society Nepal J/V.C Himal Energy Consultant P. Ltd

Balkot-2, Bhaktpur

Agro-processing Mill, Water Pump & Various Vehicles

Hetauda, Chitwan & Ktm

6631638 Y. B. Thapa

3 Nepal Public Awakening Forum Rukum Diesel Generator, Mentol Light &

Cooking Stoves Musikot, Rukkum

9741066734 Man Bhadur Khadga

4

Multiscope Consultancy P. Ltd Buddhanagar-10, Kathmandu

Diesel Generator Set to operate Water Pump, Computer and Household Electricity & Burning Stove for Heating and Cooking Purpose

Aayam Training Centre, Chhauni, Kathmandu

01-2112128 Hari Bhadur Darlami