News From Indian Press about BioDiesel

India treads the Europe path, turns to bio-fuel

Rudolf Diesel, the inventor of the diesel engine, had demonstrated it at the 1900 World Fair using groundnut oil. More than a century later, bio-fuels seem set for a comeback. While the use of bio-fuels is prevalent in Europe , it could soon pick up here as well. Organisations such as Indian Oil, Indian Railways and the Mahindra group are conducting research in the field. If successful, bio-diesel could result in substantial reduction in petroleum imports. Bio-diesel refers to those plant oils that can substitute diesel. Vegetable oils can be directly used as fuel, but they perform better after chemical treatment. The resulting fuel can then be blended with regular diesel in various concentrations. For instance, bio-diesel is sold in France in a 5% mixture with regular diesel while it is sold in Germany in pure form. According to DK Tuli, CEO of Indian Oil Technologies, an IOC subsidiary, apart from being renewable, mixing bio-diesel also results in fuel quality improvements such as a higher cetane number and reduced sulphur emissions. Indian Oil is running a pilot plant for bio-diesel production. According to Mr Tuli, a 5% bio-diesel mix can be used with regular diesel without requiring any changes in the engine design. Engines have also been tested at concentrations of 10% and 20%. Bio-diesel can be obtained from virtually any plant oil. Soybean oil is the preferred feedstock in the US , rapeseed and sunflower oil are used in Europe while Malaysia and Thailand use palm oil. Germany , France and Italy are large producers of bio-diesel. The total installed production capacity in EU is more than 2 million tonnes a year and the production exceeded one million tonnes in '02. Use of edible oil to produce bio-diesel would be financially unviable in India . Hopes however rest on a wild plant, Jatropa, whose seeds are rich in oil. According to RP Sharma, professor at IIT-Chennai and former member of the Planning Commission Committee on bio-fuel, Jatropa is a hardy plant that can grow in near absence of water. Jatropa plants have a productive life of up to 40 years, but take two to three years to mature. The yield of oil could be as high as 3,000 kg/hectare. The cost of bio-diesel depends on two factors, the cost of the seeds used in oil extraction and the cost of processing the raw oil. According to Mr Sharma, the cost of processing should not exceed Rs 3-4 per kilogramme. The economic feasibility therefore depends upon the availability of oil at a reasonable price. But since Jatropa has no commercial use, there is no cultivation as of now, and availability of seeds for oil production is a problem. However, a number of plantations are believed to be coming up in Rajasthan and Haryana. Indian Railways has signed an MoU with IOC for a 500 hectare Jatropa plantation. India 's first large-scale plant for manufacture of bio-diesel is at Gurgaon, outside Delhi , operated by Harbinsons Biotech. The company is trying to sell the design in India and had set up the plant as a demonstrator.

The Economic Times, December 25, 2003

Need for bio-fuel production urged

Siddharth Patankar – NDTV.com

Tuesday, August 5, 2003 (New Delhi):

The Planning Commission has asked for a greater emphasis on the production of bio-fuels. This new technology produces oil from plant seeds which can then run cars and any other machine that uses diesel.
DaimlerChrysler India announcing their newest initiative -- the development of more than a 100 hectares of wasteland in Orissa and Gujarat to grow a plant called jatropha. Oil extracted from the jatropha seeds will be processed and used as a diesel substitute.
"It is a synthetic diesel if you would like to say. Its properties are comparable to what we know as normal diesel. It is usable either in a blend or you can use that as 100 per cent bio-diesel in an engine as well. And that helps us to use fuel which is not produced out of crude oil and help save our natural resources," said Dr Herbert Kohler, Vice President, DaimlerChrysler AG.

From  NDTV.com

After perfecting the technology for extracting bio-diesel from Jatropha plant in the first phase, the Council for Scientific and Industrial Research (CSIR) is now in talks with country's biggest truck and bus maker Tata Motors and Indian Oil to take its biofuel project to the next stage.
''We are talking to Tata Motors for testing its vehicles on bio-diesel developed from jatropha plant. Besides, we are in touch with Indian Oil for studying our new alternative to diesel,'' CSIR Director General R A Mashelkar told newspersons after DiamlerChrysler test-vehicles powered by bio-diesel reached Delhi today.
As part of the viability test of the new alternative to diesel, two Mercedes-Benz successfully traveled more than 5,000 km. ''The road test has been truly encouraging and has generated tremendous enthusiasm among the public and opinion makers,'' he said adding that the project will invite other auto makers for further test.
from UNI

IT may be a smooth ride ahead for vehicles fuelled by biodiesel. What could be better than testing it on the Mercedes? The effects of this new fuel were nearer home on Monday, when the Mercedes Benz C class, which is on an eco-friendly cross-country drive, cruised into Ahmedabad.
The car, running on a biodiesel, will leave for Jaipur from here and conclude its journey at Delhi after covering more than 5,000 km since it started on April 5. The car has covered the treacherous Western Ghats, the humid coastline of South India and the arid desert of Rajasthan and now, it has entered Gujarat. ‘‘The road test has been truly encouraging and has generated tremendous enthusiasm among the public and opinion makers,’’ said Suhas Kadlaskar, the Director Corporate Affairs and Finance of Daimler Chrysler India.
Daimler Chrysler initiated the project in August 2003, in partnership with Council for Scientific and Industrial Research (CSIR) and The University of Hohenhiem, Germany. It has assumed responsibility for organising the event, funding the project and also testing the biofuel.
‘‘This fuel can be used in any type of engine or car without making any changes in the existing engines. It’s just like any other fuel. This alternative to diesel has cleared all emission and pollution tests including the Euro II norms,’’ said Sanjeev Mandep of Daimler Chrysler. Wondering about the cost factor? Breathe easy, this eco-friendly fuel will cost nearly the same as diesel. ‘‘But it’s too early to say anything,’’ says Mandep.
If you thought the list of good news ends here, there’s better news. Biofuel is got from extracts of Jatropha plant, which grows on wasteland and has survived two droughts in Orissa. ‘‘The plant has a tendency to grow in dry areas, that’s why we chose this plant for the project,’’ said Dr P K Ghosh, the Director of Central Salt and Marine Chemicals Research Institute. He added that the plant was being cultivated in Madhya Pradesh, Orissa and Gujarat.
‘‘Madhya Pradesh can become the largest cultivator of Jatropha as it has a lot of uncultivable land,’’ he added. Gujarat government is also educating and encouraging its farmers to cultivate Jatropha in areas that do not have a high-yielding capacity. Approximately 10 lakh ton of biodiesel can be extracted by cultivating Jatropha in 20 lakh hectares of land. A production centre for biofuel in Gujarat is Chorvadla in Bhavnagar.
‘‘Biofuel reduces emission of harmful substance by limiting the particulate matter carbon dioxide as compared to diesel. It can be used in generators and other appliances as well,’’ said Dr P K Ghosh. Biofuel will also pave the path for wasteland reclamation, rural development and income generation and sustainable mobility in remote areas.
The first two-year phase, 2003 and 2004, has been devoted to selection of plots in Orissa and Gujarat, determination of soil parameters as well as production of biodiesel conforming to European standards. The second phase will cover harvesting of seeds to total input-output analysis and model for viable biofuel development from wasteland.
from Indian Express

The Southern Online Biotechnologies Limited , which is setting up the country's first bio-diesel project in Andhra Pradesh, is all set to sign MoU with several government bodies and non-governmental organisations in about a week's time, for procuring raw material like Pongamia Pinnata (Karanja or Kanuga) and Jetropha seed. The oil extracted from this seed is used to produce what is called the bio-diesel, said to have characteristics like less pollution-causing and, possibly- improved mileage. Generally considered an eco-friendly, bio-degradable product, it can be blended with diesel in different proportions or used as a total replacement for conventional diesel.
Besides the Indian Railways, several organisations like the Andhra Pradesh Lorry Owners Association, and the Rig Owners associations have offered to buy the bio-diesel proposed to be produced by Southern Online subject to conditions.
The company is setting up the bio-diesel project at an estimated cost of Rs. 15 crores at Choutuppal in Andhra Pradesh, with technology from a German company named Lurgi. It expects to achieve financial closure by July this year, and commence commercial production by April 2005.The project is also under circulation with German Technological Co-operation (GTZ), a statutory body, for financial assistance.
According to sources, Indian Railways, which uses about 2 million kilo litres of diesel per annum, has shown interest in buying bio-diesel provided its price is less than conventional diesel and quality is as per American Society for Testing materials (ASTM) standards.
Southern Online expects to sign MoU with the Andhra Pradesh Society for Elimination of Rural Poverty (APSERP- Velugu), the Andhra Pradesh Forest Development Corporation, and the Vana Samrakshana Samithi (VSS) through the Forest Department. The expectation is that Velugu can procure about 400 tonnes, APFDC 900 tonnes and VSS another 450 tonnes. Though this is considerably less than the 32,000 tonnes per annum requirement of the company it is seen as an encouraging beginning. Rough estimates put the possibility of procurement at 8,000 tonnes per annum through these organisations. The amount of interest shown in developing such raw sources of raw material is reflected in the Government of India providing Rs.1,000 crores for raising and promoting Pongamia to produce bio-diesel oil.
The Lorry Owners Association, which consumes about 82 lakh litres diesel per day, has evinced interest in buying up to 12,500 litres per day of bio-diesel. The rig owners have shown interest in quantities up to 6,000 litres.
from The Hindu

In order to give fillip to its proposed biodiesel project, Southern Online Biotechnologies Ltd has roped in scientists from leading research institutes like IIT, Delhi, Indian Institute of Petroleum, Dehradun, Indian Institute of Science, Bangalore, to act as honorary advisors for the country’s first biodiesel project in Andhra.
As part of the advisory committee, the scientists who have evinced interest in the project include: Dr AK Bhatnagar, Petrotech chair professor in the department of chemical engineering at the Indian Institute of Technology (IIT, Delhi), Prof LM Das, IIT, Delhi and consultant for General Motors, Prof Udipi Srinivasa, IISc, Bangalore, Dr TNB Kaimal from the Indian Institute of Chemical Technology and Mr Sudhir Singhal, director of Indian Institute of Petroleum, Dehradun.
‘‘The scientists will be the honorary advisors for the Rs 14.8-crore biodiesel project to come up in Andhra Pradesh with the technology being sourced from Lurgi, Germany,’’ Mr N Satish Kumar, director of the company said. However, the research institutes are not directly involved with the project.
The technology involves extraction of biodiesel from non-edible seed oils like Pongamia or Jatropha seeds or vegetable fats by esterification and transesterification using methanol or ethanol and chemical catalysts, he said.
The project, expected to be initiated this year, has already obtained the import and export code from the joint director general of foreign trade along with clearances from the industries department. The total capacity of the plant through extraction is estimated about 30 tonnes per day.
from The Financial Express

City-based Southern Online Bio Technologies Limited is coming out with a Rs 17.1-crore rights-cum-public issue to entirely finance its bio diesel project.
N Satish Kumar, managing director of Southern Online Bio, said that the issue would open by September and UTI had agreed to act as the lead managers to the issue.
The company would also list its shares on the Bombay Stock Exchange (BSE) to create better value for its shareholders. The company is at present listed on the Hyderabad Stock Exchange (HSE) and the Bangalore Stock Exchange (BgSE)
Under the rights-cum-public issue being offered at par, the company would offer 57 lakh shares as the rights which would be subscribed to promoters and their associates. Shares totalling 1.14 crore would be offered to the public, the Southern Online Bio managing director said.
Kumar said that the company would approach Sebi for its approval for the issue next month and also seek an in-principal nod from the BSE for listing. Post-issue, the paid-up capital, which is presently at Rs 5.36 crore, will rise to Rs 22.8 crore.
The authorised capital would rise from Rs 12 crore to Rs 23 crore. The networth will rise from Rs 5.94 crore to Rs 24.43 crore. Promoters have to subscribe to minimum 20 per cent of both rights and public issues. At present, their stake holding in the company stands at 33.3 per cent.
Giving the break-up of the Rs 17.1-crore bio-diesel project, he said that the plant and machinery would cost Rs 9.2 crore, miscellaneous fixed assets Rs 1.32 crore, preliminary operations Rs 2.76 crore and land-cum-civil works Rs 8.57 crore.
The company is setting aside Rs 1.09 crore as the contingency fund and Rs 1.86 crore as margins for working capital. The company has acquired 10 acres at Choutuppal, 50 km from the city, for setting up a plant to produce bio diesel using oil seeds from trees such as pongamia pinnata, jatropha curcas.
“The plant with 30 tonnes per day or 90,000 tonnes per annum capacity would require around 100 tonnes of seeds per day. The annual requirement of seeds is around 32,000 tonnes. As the current availability of seeds in the state is less than 4,000 tonnes, we would use other raw materials like acid oils, distilled fatty acids, animal fatty acids and non-edible vegetable oils like neem, rice brawn etc,” Kumar said.
The company is entering into buy-back arrangements with farmers as well as plantation owners to source raw materials. “Irrespective of quality of seeds, they will be procured at Rs 4-4.50 per kg. The commitment is being made to the suppliers,” he said.
Satish Kumar said the company was planning to start the works shortly and expects the production to commence by April 2005.
The company had already entered into agreements with buyers like railways, Hyderabad and Visakhapatnam corporations etc. The company had agreed to supply bio diesel at rates cheaper than those of conventional diesel, he said.
from - Business Standard

Is the world really running out of oil? After surveying the views of the world’s leading experts in the field of monitoring and tabulating the world’s petroleum supplies – the magnitude of the problem and the complexity of the solution (if there is a solution to this dilemma) becomes clear.
For instance, for new sources of oil to be identified and extracted – the price of this important commodity will have to rise – as most of the “cheap oil” that could be taken out of the ground and sold for $20-30 a barrel – is gone. What comes next is a steady increase in the price of oil until the new hikes make it profitable for the producers to extract it from less accessible sources. This is inevitable and no amount of investment in alternative energy development or reduction in current consumption will alter it. Some of the world’s leading experts together with oil industry executives have warned that the era of cheap oil is drawing to a close.
In 2002, the world produced slightly more than 66m barrels of oil a day. (b/d) It consumed about 79m b/d, equivalent to 25-27bn barrels a year. The problem is that, on average, only around 7bn new barrels a year are discovered. Global demand for oil is currently rising at more than 2% a year. Since 1985, energy use is up by about 30% in Latin America, 40% in Africa and 50% in Asia. Energy demand worldwide is expected to rise by about 50%-60% over the next 20 years to 112m b/d , some 40bn barrels a year.
According to the US Geological Survey’s latest report published in 2000, the world’s proven oil and gas currently stands at about 2.5 trillion barrels. A calculation using data from the Centre for Global Energy Studies shows that with 28.8bn barrels currently being consumed per year (79m b/d), there is some 80 years of supply left in the ground. However, the 2.3bn barrels remaining include 1.4bn barrels which, according to US Government Statistics (USGS) analysis of global geology, do exist but have yet to be discovered. That leaves roughly 890bn barrels of oil and gas that has already been discovered and is booked as proven reserves –about a 31-year supply.
Colin Campbell believes global production of oil will peak before 2010. Keneth Deffeyes believes the date will be sooner than that, sometime in the next two years. The US Geological Survey, a Denver-based group that tracks petroleum resource use, estimates the peak will occur between 2011and 2015. The French oil company TotalFinaElf has said it believes the year will be 2010. Meanwhile, the US Energy Department believes that it won’t happen until 2037.
World oil and gas production from existing fields is declining at an average rate of 4% to 6% a year. To meet projected demand in 2015, the industry will have to add about 100m b/d of new production, which is equal to about 80% of today’s production level. In other words, the oil industry will need to find, develop and produce a volume of new oil and gas that is equal to eight out of every 10 barrels being produced today. That means new oilfields that can produce 60m b/d. As a comparison, 6m b/d are produced from the North Sea.
So if the world is definitely running out of cheap oil – and not replenishing what it is consuming – what are the geopolitical implications of this? This is the question that few mainstream media sources will confront as the answers are far from comforting.
Predictably, the US and Russia are competing to exert dominion over this region – with pipelines. The US wants to build one from Turkmenistan through Afghanistan to the Indian Ocean. Meanwhile, British Petroleum is building a $3.8bn pipeline from Baku in Azerbaijan via Georgia to Turkey’s Mediterranean port of Ceyhan. Russia is keen to construct a pipeline across its territory from Chechnya via the northern Caucasus region. The Russians will soon station troops in Kyrgyzstan – about 150 km from a US airbase. The US also has a military presence in Uzbekistan. Russia offers military and financial aid to its allies in the region and the US does the same.
The third factor is China, whose demand for oil overtook the needs of Japan in 2003, to make it the world’s second largest oil consumer. Its fuel imports are soaring by 9% a year. The country was self-sufficient in oil until as recently as 1993. Now, it is increasingly depending on imports and that supply will increasingly come from the Gulf. The Chinese are heavily dependent on oil supplies from Sudan and, as a result they have developed close military ties with the government in Khartoum. They also seek oil from Kazakhstan and are attempting to strengthen their military ties there in order to be able to build a pipeline from Kazakhstan to China.
Thus China, Japan, western Europe and the US will all be competing for access to the same supplies of oil. Unlike other commodities – oil has enormous political significance – none of which should be lost on anyone viewing world affairs in the coming decades.
The end result will basically be a repeat of “the Great Game” scenario of the 19 th century. While wars in that century were fought over valuable minerals and control of the world’s sea routes – wars in the 21 st century will likely be fought over access to increasingly scarce sources of petroleum. We have already seen the first war in this new century waged over the need to control the planet’s last remaining sources of cheap oil. As oil supplies become scarce the world will become increasingly unstable.
Regardless of how geopolitical events take shape nothing can be done to alleviate the upcoming peak production of oil. Alternative energy sources are a nice idea, but even if the advanced nations of the world got fully behind these initiatives, it would take decades to see a meaningful decrease in oil consumption. Also, regardless of how attractive some forms of alternative energy may sound on paper – it is highly unlikely that even in 50 years the world will be free of its need for petroleum products.
Oil will become more expensive. Nothing in the short-term can be done to forestall this inevitable price rise – or the impending shortage of supply. The survivors will be those who learn to accept it and adapt.
from The Middle East (Edited)

With the increasing price of crude oil, the import bill of India on petroleum products is expected to cross US$ 16 billion during the current year. The time has come to explore alternatives and tap the traditional wisdom. Considering the seriousness of cost of petroleum products and the pollution caused by the use of these products, many developed countries, particularly Germany and Australia, have ventured into the use of vegetable oils as a better alternative to diesel. Several other western countries have invested huge sums in research and development to promote the use of biodiesel on a commercial scale. Fortunately, suitable initiatives have also been made in India by Government agencies, research institutions and automobile industries.
In India, oils extracted from seeds of different species have been traditionally used as a source of energy for lighting and heating. Gradually these oils were used for more valuable purposes such as production of soap, candle, cosmetics and pharmaceuticals. In the past, the use of these oils as a substitute for diesel was not encouraging because diesel was available at a much cheaper price. Now with the increasing price of petroleum products and increasing concern on oil pollution, vegetable oils are likely to have a permanent demand from the automobile industry in the future.
It is also heartening to note that work has already been initiated in India to standardise the technique of esterification to convert oil into biodiesel. Keeping in view the physical and chemical variations of oils from different species and the impact of using biodiesel on the efficiency of the engines and environment, reputed research institutions and automobile industries have reported that biodiesel can reduce the wear and tear of the engines and reduce the oil pollution significantly. This has now encouraged scientists and farmers to grow oilseed-yielding species as an economically viable activity, particularly to develop marginal and wastelands lying under-utilised in the country.
Presently most of the non-edible oils are obtained from seeds of tree species. Important tree-borne oilseed species in India are Neem (Azadirachta indica), Karanj (Pongamia pinnata), Mahua (Madhuca species), Undi (Calophyllum inophyllum) and Jatropha (Jatropha curcas). Whereas the first four species grow into big trees, Jatropha is a shrub that starts bearing fruits right from the first year. Apart from being used as oilseeds, these species have medicinal value and are used traditionally for curing various ailments in India. Neem and Karanj are also being used for producing bio-pesticides in recent years.
It was very heartening to note that the Indian Railways have taken the initiative to promote Jatropha cultivation along the railway tracks and to use biodiesel as engine fuel. They have successfully tested the biodiesel by running a Jana Shatabdi Express from Delhi to Chandigarh exclusively on Jatropha. Mahindra and Mahindra have successfully conducted large scale trials of operating their tractors on biodiesel and Mercedes Benz is sponsoring Jatropha production with a commitment to use biodiesel to run their cars. Hence, engineering side of biodiesel industry is ready to take off immediately. Use of biodiesel at the village level for operating oil engines for pumping water, operating small machinery and generating electricity is another good opportunity, which will be a boon for our farmers. However, while utilising these species as a source of biodiesel, there is further need for research into various areas of production. In fact, producing in commercial quantities and establishing forward linkages are the weakest areas for promoting biodiesel on a large scale in the country.
Although these species are well adapted to harsh weather conditions, there is a need to domesticate them for cultivation under different production systems on degraded lands and community wastelands. Determining the specific agro-climatic requirements, identifying superior seeds, proper space management, critical moisture regime for flower induction, enhancing the seed yield and calculation of cost-benefit analysis are essential before the farmers accept them as an important avenue for income generation. Many experts have predicted that by bringing about 25 million ha under Jatropha and Pongamia cultivation out of the estimated 80 m ha wastelands, twice the quantity of biodiesel can be produced which is currently used in the country every year. This being an import substitute, farmers willing to cultivate these crops have greater advantage with respect to price recovery leading to higher returns. This will also be an opportunity to bring the barren lands under green cover while generating year round self employment to the rural poor.
Presently there is a lack of authentic information on the seed yield of these species. The largest Jatropha cultivation in India was in Nashik district of Maharashtra and the average yield in this region has been in the range of 1.0 to 1.5 tons/ha/yr. There are some reports that claim yields of 10 tons/ha, which are unrealistic under average rain-fed conditions of cultivation. It is important to have realistic yield estimates and economics of production through a series of multi-locational yield trials under different agro-climatic conditions, before launching the programme on a large scale. In the absence of authentic data, attractive yield predictions can mislead farmers and result in disappointment.
With this background, a national workshop on Jatropha and Other Perennial Oilseed Species was held from 5-7 August 2003 at BAIF, Warje, Pune. The workshop provided a forum to share knowledge and deliberate on issues related to production, processing and policy matters by scientists and extension workers. The following recommendations have emerged during the workshop. We sincerely feel that the recommendations will help the policy makers, researchers and development experts to take up suitable innovations for promoting the cultivation and use of Jatropha and other perennial oilseed species in the future.
Recommendations

1. Production

   1. A systematic germplasm collection and evaluation programme must be initiated for important tree-based oilseed species to identify elite material from the existing natural variation.

   2. It is necessary to establish clonal seed orchards and develop mass multiplication techniques to ensure easy supply of elite planting material to growers.

   3. Agronomic studies to standardise cultivation practices such as spacing, pruning, nutrition and production system must be carried out under different agro-ecological conditions.

   4. A series of field demonstrations must be established using currently available information, to highlight the economic viability of cultivation of species such as Jatropha as alternative options on degraded lands and community wastelands.

   5. Realistic economics of production must be worked out for a range of soil, environment and management conditions.

   6. Nodal agencies must be identified in different regions to procure superior quality seeds and plants.

   7. Research should be undertaken to improve the yields and value addition through alternative uses such as medicinal ingredients and biopesticides.

2. Processing and Marketing

   1. Appropriate processing technologies must be developed for small-scale processing operations.

   2. Support for the establishment of processing units must be made available to community groups or cooperatives.

   3. Local networks must be created to link self-help groups engaged in seed collection with those operating processing plants and oil dealers.

   4. Information and marketing services must be strengthened in order to stabilise prices for oilseeds, oil and by-products.

3. Policies

   1. A national council must be established to promote and regulate all aspects of production, processing and utilisation of tree-borne oilseed species.

   2. Considering the long gestation period, growers of perennial oilseed species must be given a specific period of tax exemption from the time the plantations start yielding commercially.

   3. Blending of biofuel with conventional fuel must be legalised.

   4. Vocational courses (ITI) on biofuel utilisation must be made available.

from BAIF Journal

When Govindh Jayaraman opens his latest biodiesel fuel station in downtown Toronto this morning, he is hoping to repeat the phenomenal success he had with his first station, in the Toronto suburb of Unionville. "It was fantastic," said Mr. Jayaraman, president of Topia Energy Inc. of Ottawa. "We used to be the station that nobody went to. Now, we're a high-volume outlet." That station has been open for less than three months, but it has already attracted a loyal following. "We get cars and trucks. Transports and Mercedes and farmers. We get all kinds of people."
Mr. Jayaraman's secret is biodiesel, a renewable fuel that he said is just as powerful as petroleum-based fuel, but is renewable, environmentally safe and cleans out your engine too. The fuel is so popular that he said sales have increased by 600 per cent since March at the Unionville location, with similar growth expected for the new outlet in downtown Toronto.
At 76.9 cents a litre, Topia's biodiesel costs 5 cents more than regular diesel fuel. But he said it is significantly cheaper than regular gasoline at a time when prices of that fuel are topping 90 cents a litre. And the mileage is better too.
Biodiesel fuel may not be well known in Canada, but it has been selling briskly for more than 20 years. Wendy Jahn, general manager of the Ontario Soybean Growers in Guelph, Ont., says the prime users remain farmers who like to run a fuel in their tractors that works just as well as regular diesel but is better for the environment and the rural economy. Tractors that run on pure biodiesel fuel leave a faint smell of French fries behind them, but she said the smell is too faint to be objectionable.

President Bush told lawmakers to rely on alternate fuels like Biodiesel

"We’re all going back home and we’re going to be facing constituents concerned about high gasoline prices ..." he said. Bush made it clear that he’s not going to accede to calls by some members of the U.S. Senate to release oil from the Strategic Petroleum Reserve in an effort to stabilize rising gasoline prices, LaHood said. The president told lawmakers "to go back home and talk about getting the Senate to pass an energy bill so we can rely on alternatives like ethanol and biodiesel and put some things in place that will help us relieve our dependence on Middle East oil."