10-04-2012, 11:55 AM
WHY IS BIODIESEL AS AN ALTERNATIVE NOT PICKING UP
mayank_biodiesel_assignment.doc (Size: 106.5 KB / Downloads: 39)
INTRODUTION
Biodiesel is a liquid fuel made up of fatty acid alkyl esters, fatty acid methyl esters (FAME), or long-chain mono alkyl esters. It is produced from renewable sources such as new and used vegetable oils and animal fats and is a cleaner-burning replacement for petroleum-based diesel fuel. It is nontoxic and biodegradable. Biodiesel can be legally blended with petroleum diesel in any percentage. The percentages are designated as B20 for a blend containing 20% biodiesel and 80% petroleum diesel, B100 for 100% Biodiesel, and so forth.
POSSIBLE REASONS FOR SLUGGISH INCREASE IN THE DEMAND OF BIODIESEL
B20 can be used in nearly all diesel equipment and is compatible with most storage and distribution equipment. B20 and lower-level blends generally do not require engine modifications.
ECONOMIC CONSIDERATIONS
Many economic evaluations of biodiesel use have been performed in the past. The cost of biodiesel depends on the places where the soy beans grow, the agriculture techniques that are used, the process technology considered to get the biodiesel as well as the intermediate processes that are required. The average cost of biodiesel in Italy is about 2–3 times higher than that of diesel fuel, without considering excise tax and VAT. Since 1990’s, the European governments have been promoting the use of biodiesel by abolition of the excise tax on a specified maximum annual amount biodiesel. Such steps have led to increase in Biodiesel consumption but still the growth is less than what it should be.