Biofuel: an alternative

The South East Asian countries are generally fuel starved. However Pakistan is blessed with gas, but it is depleting fast, thus calling for more explorations, conservation and looking for alternative source of energy.
The fuel oil prices soaring at 76 USD, may touch peak of 100 USD as exploration and supply do not meet the growing demand. Our fuel bill has soared to over 6 billion USD due to import of refined petroleum products and insufficient refining capacity. Indians are also bracing the fuel crisis and their import bill soared to 44 billion USD for 95 mill tons of fuel oil.
Indian economy maintaining a growth rate of about 10%, oil imports are expected to surge to 95 billion USD in 2025, importing about 313 million tons. Indians are seriously developing alternative sources and have built 3 LNG terminals at Dahej, Hazira (Shell) at W. Coast of Indian Gujrat and third terminal is being built at Kolchi (Cochin) to meet their energy requirement by importing LNG.
Indian Private Sector Shipowners have ventured into operating LNG vessels under Indian flag. Whilst in Pakistan our 49% of energy requirement is met by natural gas, oil is 30%, Hydro Energy 13% and coal about 7% and Nuclear energy 1%.
We have not yet been able to harness wind power which is abundantly available and suited sites are Gharo, Ormara and Makran Coast where wind can be converted into energy, as data indicates availability of 5-7 meter per second of wind to convert into energy. Balochistan also has proven reserve of 52 mill ton coal in addition to Thar Coal of 175 mill tons. Serious efforts are needed to develop wind farms and coal powered energy units to combat our growing need of energy.
The oil exploration is so minimal that we will have to import fuel oil, but refineries can be developed to cut down imports of refined products. We have virtually zero share in about 5200 MW wind energy, whereas India is touching 1000 MW mark but USA, Spain, Holland have harvessed wind energy well.
America is betting on a bright future for Bio Diesel. The nascent bio fuel industry is hoping for big growth as USA tries to cut import of M.E. oil. Recently US Govt/Energy department brought Bio fuel funding to almost / billion USD with a further USD 200 million to fund small scale plants, that turn renewable sources like wood chips and switch grass into fuel Ethanol.
However Bio diesel which is made from feed stocks such as vegetable oil, animal fat and manure, remains difficult to transport and relies largely on Govt. incentives. Bio fuel can be used as transportation fuel, when as much as 20% is blended with regular diesel and for US homes in a 5% mix with regular heating oil. Capacity has gown exponentially after bio diesel producers got USD 1/- per gallon tax credit.
There are 115 Bio diesel plants in USA with a combined production capacity of 865 mill Galls/year. 80 plants are under construction to boost capacity to 2 bn Galls/year. According to National Bio diesel Board farmers will produce more corn to produce Ethanol feed stock and US Govt is looking forward for 8 bn Gall capacity by 2009, thus to have green premium product which is environment friendly. The US is using presently 6 bn gallons of Ehtanol.
We in Pakistan are now producing Ehtanol out of Molasses but the same is exported. Pakistan must concentrate on using Ethanol upto 20% by using production from Sugar mills and exploring production of Ethanol from Cellulosic sources, like wood chips and switch grass.
Govt must make it mandatory for oil and petroleum companies to blend Ethanol upto 20%. Brazil, India and USA are already blending. Interestingly Bill Gates of Microsoft and Steve case, the founder of AOL are investing in Bio Fuel, so Pakistani entrepreneurs may be lured by giving good incentives and rebates. The promising ingredient for Bio fuel is an ordinary Shrub, JATROPHA, which was brought to the subcontinent by Portuguese, locally known as Ratanjot, resembles castor. The seed contains oil which can be blended with diesel.
Govt may offer incentives to farmers to grow this plant with widening deficit of 14 billion USD. We must put our heads together to cut down fuel oil import bill and at the same time grow canola, corn etc to cut down cost of both edible and non edible imports. We must cut down our energy bill by blending Ethanol, harnessing wind energy and optimising use of coal powered generation and release ourselves partly from import of fuel oil.
It is strongly recommended that an independent National Bio diesel Board be established on the pattern of US with hard core professionals only to give a kick start of blending ethanol on war footing. We must also support development of LNG terminals as one is coming up at Port Qasim and import LNG, to meet the gas demand which is expected to exceed domestic supply by 4 bcm by 2010 as gap will further widen to 44 bcm by 2020.
"LET A NEW DAY DAWN FOR PAKISTAN":
(The writer is Ex. Additional Secretary, Director General Ports & Shipping, Ex Chairman Gwadar Port and member Board of Governors World Maritime University Malmao, Sweden and also expert on the International Maritime Organisation London Panel of Experts.)