Bhoruka Power gets grant for bio-diesel study

Bhoruka Power Corporation Ltd, a player in renewable energy sector in the small hydropower sector, has received a grant of $100,000 from the US government to conduct a detailed feasibility report for a bio-diesel project in Gulbarga district.

The agreement has been signed on behalf of the government of US through the US Trade and Development Agency (USTDA).

According to Chandrasekhar, MD, Bhoruka Power: "This is the first time that the US government has given a grant in India to the bio-diesel sector. The success of such models will help rural development in a major way. Apart from using enormous tracts of wasteland to grow non-edible oilseeds, generating employment in rural areas by encouraging contract farming, our country's energy security needs will be met given the ever-rising price of crude oil in the international market."

"India being a huge importer of oil can save substantial foreign exchange if bio-diesel is promoted on a large scale. More such grants would mean an enhanced interest and faster movement towards the era of alternate fuel," he further added.

The study, slated for completion by April 2005, will be conducted along with Bio Diesel Industries, Las Vegas, California, who manufactures the esterification plant that converts oil to diesel. The study envisages the use of neem or pongamia non-edible oilseeds for production of bio-diesel as well as power.

The process involves collection of neem or pongamia seeds, drying and crushing the seeds to extract oil and esterification of oil to produce bio-diesel. The residual oilcake will be used as a fuel for power.

The project will be located in Jewargi taluk, Gulbarga district at a cost of $700,000 for seed processing, crushing and esterification facility and an additional $2 million for the 4-5 MW biomass plant which will be using the residual neem cake as fuel. The pilot project will produce about 2 million gallons of bio-diesel per annum. The proposed project will be an integrated model for producing power as well as bio-diesel.