1. Mahate Vidosh et al. / International Journal of Engineering Science and Technology (IJEST)
Impacts of Bio-fuel use: A Review
Mahate Vidosha , Verma Prakshb , Chaube Alokc ,
a
Mech. Engg. Deptt. Bhopal Institute of Technology, Bhopal, India
b
I.P. Department, Jabalpur Engineering college, Jabalpur, India
c
Rajiv Gandhi Proudyogiki Vishwavidyalaya, Bhopal, India
Abstract
The purpose of this paper is to provide a broad overview of the technical, social, economic and environmental
impacts of bio-fuel use. The major factors that are considered in evaluating the impact are: (1) different blending
ratio of bio-diesel with diesel in C I engine of vehicles and their performance in terms of power, torque and
specific fuel consumption, (2) Social factors such as population, employment generation, profitability to
farmers, regional growth, and changes in land use pattern (3) economic impacts of bio-fuels production are
effects on food and agricultural prices including impacts on food security and (4) environmental impacts &
greenhouse gas emissions and issues of technology. For purpose of blending, biodiesel can be blended in any
proportion with mineral diesel. In comparison with fossil diesel, bio-diesel shows better emission
characteristics. The environmental performance of road transport improves by use of it, including decreased
greenhouse emissions: substantial reduction in emission of unburned hydrocarbons, carbon monoxide and
particulate matter. Factors related to social and economic aspects like employment generation, utilisation of
wasteland, diversity of agriculture land, food prices, reduction in imports fossil due to use of bio-fuel and energy
prices can have significant impacts on bio-fuel development. Food security will be affected by the conversion of
agricultural land for bio fuel plantation and cause indirect change in land-use pattern.
Key words: technical viability, social impact, economic aspects, environment viability.
1. Introduction
World-wide production of bio-fuel has been increasing rapidly in the last decade, but the viability of
first-generation bio-fuels, which are produced primarily from food crops such as grains, sugar cane and
vegetable oils, has been increasingly questioned over concerns such as displacement of food-crops, effects on
the environment and climate change. Second-generation bio-fuel have potential to provide benefits such as
promote rural development and improve economic conditions in emerging and developing regions by making
use of wasteland. At the same time second-generation bio fuel production could become unsustainable if they
compete with food crops for available land. Second-generation bio-fuel are not yet produced commercially, but
a considerable number of pilot and demonstration plants have been announced or set up in recent years, with
research activities taking place mainly in developing countries like India, Brazil, Indonesia (Anselm, 2010;
Fargione et al, 2008; Searchinger et al., 2008).
Major drivers for increase production and demand of bio-fuel are the increase in oil price, the
heightened worldwide concern over global climate change, improvement of energy security and a decreased
dependency on unstable oil suppliers, and benefits to agriculture and rural areas and an opportunity for
increasing economic development in many developing countries, due largely to the abundant availability
of wasteland and cheaper costs of labour (Francis et al., 2008; Banse et al., 2007).
Bio fuel viability is typically measured in terms of GHG Mitigation Potential & Net Energy Balance,
Impact on Food/Energy Security, Economic Viability, Employment Generation & Poverty Reduction Potential,
and Rural Development (Sethi, 2009).
Approaches to impact assessment of the bio fuel use can be broadly categorized in bottom-up and top-
down (Bole, 2008). Bottom-up approaches; describe in detail current and future energy technologies on the
demand and supply side. It focuses on different technologies and their contribution to energy efficiency and
emission reduction (Roques et al., 2008). In techno-economic models where the demand side is given more
importance, total energy consumption can be computed as the sum of energy demands of all sectors of economy.
These models allows for the representation of energy savings and energy substitutions within econometric
relations, and hence for the identification of structural and behavioural changes (Bole, 2008). This approach also
takes into consideration the cyclical nature of markets, where high feedstock prices restrict production and thus
relax the impact on prices.
In contrast, a top-down approach focuses on the economy as a whole and studies the interactions
among energy, environment and economy (Bohringer, 1998). In top down approaches, parameters are estimated
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econometrically within equations that generally simulate potential global production as a function of factor
inputs such as capital and labour. In the field of economic analysis, it has the advantage of being able to take
into account structural unemployment, stemming from insufficient labour demand in the long run. Economic
policy analysis comprised the building of top-down models and applied econometrics to historical data on
consumption, prices and revenues so as to estimate elasticity of demand (Sugandha, 2010). The top-down
approach starts with the goal of a given share of bio-fuel in total transport fuels, selects a path to achieve this
target, calculates the amount of feedstock required to produce this amount of bio-fuel and finds possible sources
such as marginal land, export diversion, import etc. and finally predicts the impact on prices (Bole, 2008).
Policy makers mainly adopt the measures to reduce dependency on imported oil, improve the energy security of
the nation and reduction in emission of pollutants by fossil fuel by reducing the use of it and use of alternative
fuel i.e. bio fuel blending with conventional fuels. This decreases the dependency of import and also emits less
pollutant as compared to use of pure fossil fuel. Such fuels can be used directly or with some modification
before they are used as substitute of conventional fuels. Wide variety of measures can be implemented to
reduce dependency on use of fossil fuels, which can be categorised in to two broad categories- Supply side
measures and Demand side measures. Supply side measures mainly pertain to social factors related to
availability of land for bio-fuels plantation either from wasteland or agriculture land, population, food security,
employment generation, profitability to farmer and rural development. Demand side measures are related to
factors that can be grouped into three broad categories, technical factors related to the design and engineering of
the vehicle and type of the fuel used, economic factors related to price of bio fuel, price of fossil fuel, tax
reduction or exemptions for bio-fuel, direct investment and subsidies for infrastructure adjustments, & financing
schemes for infrastructure and environmental factors related to the reduction in various emission from engine
which use bio fuel.
In 2008 Govt. of India adopted a national level unified policy on bio fuel utilisation consisting of 20%
bio-fuel blending mandate with a set of supply side and demand side supporting policies, but this policy was
soon withdrawn due to a serious criticism against a lack of understanding about the economy wide impacts of
the policy (Kojima, 2010). The demand side policy is combined with supply side policy such as setting
minimum purchase prices for bio-fuels and minimum support prices for feedstock to encourage bio-fuel and fuel
crop production and to promote rural development. Considering the potential impacts of the National Policy on
Bio-fuels on Indian sustainable development, it is important to conduct policy impact assessment reflecting the
above uncertainty. The papers which have been reviewed relate to viability study of Biodiesel and Bio-fuel
production and use.
Many aspects of the technical, social, economic, and environment viability of biodiesel and bio-fuels production
have been investigated in different studies, including using different blending ratios in I C Engines and their
performance in terms of power, torque and specific fuel consumption (Mayer, 1995; Karthikeyan, 2007; Senthil,
2003; Ramadhas, 2004; Sinha, 2005; Pramanik , 2003 ; Ajav, 1999; Carraretto et al., 2004; Bhattacharyya,
1994; Graboski, 1998; Constantine, 2007; Jacob et al., 2007; Bosch et al, 2002 ), changes in land use pattern of
agriculture & wasteland, population, employment generation (Jürgen, 2007; Khalil, 2008; Deal, 2004; Clayton,
2009; Mitchel, 2008; Ray Grosshans, 2007, Raison, 2006; Shukla, 2006; Siddharth et al., 2010 ), economic
impacts of bio-fuels production, effects on food and agricultural prices including impacts on society (Rajagopal
& Zilberman, 2007; Mahendra Shah et al., 2009; Searchinger, 2008; Searchinger, T., & Heimlich, R., 2007), and
environmental impacts & reduction in greenhouse gas emissions (Hong Yang et al., 2009; Avinash, 2007;
Carraretto et al., 2004; J. Narayana Reddy et al., 2006; Rajagopal & Zilberman, 2007; Ramadhas, 2004;
Rakopoulos et al., 2008; V. Makareviciene et al., 2003; Searchinger et al., 2007). Accordingly papers reviewed
are grouped in to four categories related to technical, social, economic, and environment viability assessment
and their impact.
2. Technical Viability:
Standard compression-ignition engines designed to operate on petroleum-based diesel fuel is suitable for
biodiesel. Biodiesel can be easily used in existing diesel engines in its pure form or in any blend ratio with
conventional diesel fuels. It can be directly used in diesel engines without any modifications for short term.
Vegetable oils which are easily available in rural areas, are renewable, have a reasonably high cetane number to
be used in CI engines with simple modifications and can be easily blended with diesel (J. Narayana Reddy et al.,
2006).
A blend of 20% bio-diesel fuel in diesel does not affect any of the measured performance (Murugesan et al.,
2007; Agarwal, 2007). A 20% or less biodiesel blends or low level can be used as a direct substitute for diesel
fuel in all heavy-duty diesel vehicles without any adjustment to the engine or fuel system (Rakopoulos et al.,
2008; Agarwal et al., 2008; Stan, 2005). There are significant improvements observed in engine and emission
characteristics for the biodiesel engine compared to diesel engine. Thermal efficiency of the C I Engine
improved, brake specific energy consumption reduced and a considerable reduction in the exhaust emission was
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observed (R. Karthikeyana et al., 2007; Narayana Reddy et al., 2006; Agarwal, 1998; Souligny, 2004;
Karthikeyan, 2007; C. Arcoumanis et al., 2007; Carraretto et al., 2004).
Rakopoulos et al., 2008 reported that the engine performance with the bio-diesel blends of sunflower or
cottonseed oil bio-diesels is similar to that of the neat diesel fuel, with nearly the same brake thermal efficiency
and showing higher brake specific fuel consumption. J. Narayana Reddy et al. (2006) reported that there is
increase in the brake thermal efficiency in the case of Jatropha oil as compared to base diesel. The results from
the detailed test conducted by R. Karthikeyana et al. (2007) with turpentine–diesel engine are: increased specific
fuel consumption (SFC) is reported at full load due to the presence of knock, maximum of 8% drop in
volumetric efficiency is reported in diesel fuel engine at full load. Agarwal et al. (2008) showed that the
performance and emission parameter for different fuel blends are found to be very close to diesel. Smoke
density and brake specific fuel consumption are slightly higher for vegetable oil blends compared to diesel.
Murugesan el al., (2007) reported that the viscosity and relative density of vegetable oil decreases with blending
it with diesel. C. Carraretto et al. (2004) also reported that the average value of SFC for bio-diesel is 17%
greater than that of diesel oil. Performances of engine are slightly reduced while SFC is notably increased using
bio-diesel.
A general conclusion from above is that all the bio-diesel blends can be used safely and advantageously
in the present diesel engine. A diesel engine can perform satisfactorily on bio-diesel blends without any engine
hardware modifications. Bio-diesel is a technologically feasible alternative to fossil diesel, but there is a need of
engine modifications, when pure bio-diesel is used (Marina, 2002). Therefore, from technical and technological
point of view, blended application of bio-diesel is more promising and feasible alternative, than utilisation of
pure bio-diesel. All the above work suggests biodiesel as a promising alternative fuel for diesel engines in terms
of fuel consumption and engine performance without or less engine modifications.
3. Social Viability:
The main social drivers for the implementation of bio-fuel production are job creation and regional
growth. There are opportunities for new jobs along the entire pathway chain, from feedstock production or
collection, to feedstock transport, feedstock handling, conversion and finally product distribution for bio fuel
energy system. Job creation is an important driver in emerging and developing countries to promote second-
generation bio-fuels (Planning Commission, 2003; Domac et al., 2005).
Site preparation, planting, pruning, harvesting and processing Jatropha as bio-fuels are labour intensive jobs
(Planning Commission, 2003; Francis et al., 2008; Anselm, 2010; TERI, 2005). APEC Energy Working Group
estimated that current ethanol employment is around 45,000, while biodiesel employment is roughly 200,000.
Most of the current bio-fuels employment in APEC is concentrated in Indonesia (about 115,000 jobs), the
United States (47,000 jobs), Malaysia (24,000 jobs), Thailand (21,000 jobs), The Philippines (19,000 jobs), and
Peru (9,000 jobs). It was estimated that a 7% market share for bio-fuels would lead to an increase of 105,000
jobs in the EU, while a 14% market share would lead to an increase of 144,000 jobs, increases of 190,000 in
agriculture, 46,000 in bio-fuel production and distribution, and 14,000 in the food industry would be offset by
reductions of 35,000 in services, 21,000 in the conventional fuel sector, 16,000 in transport, 14,000 in the
energy sector, and 22,000 in other industrial sectors (Clayton et al., 2010).
The issue of land occupation is one of the most controversial subjects in developing countries. A large
constraint regarding the social impact of feedstock production is the occupation of arable land for energy crop
cultivation and thus competition with current agricultural production (Anselm, 2010). It has been found and
evaluated that the Jatropha Curcas and Pongamia pinnatta , which would be very suitable in Indian conditions.
Jatropha curcas has been found most suitable for the purpose (Planning Commission, 2003). The Energy and
Resources Institute (TERI) estimated that six categories of wasteland spread over approximately 41.93 Million
ha of land spread out in 29 states and union territories as the potential areas for jatropha plantation. According to
the climatic conditions, 26 states have been selected and all these states have 40 million ha of potential area
where jatropha can be planted as identified in the Detailed Project Report prepared by TERI for three macro
missions for raising jatropha plantations (Linoj Kumar, 2005).
Another point of criticism related to the production of bio-fuels is the issue of food security. Bio fuels
is seen as green fuel with better properties and to be a safer fuel than fossil fuel, to create employment and
having no negative impact on food security (Anselm, 2010; Ray Grosshans et at., 2007; Meyer et at., 2008).
Studies carried out on the social, economic and ecological impacts of Jatropha cultivation for biodiesel on
wasteland and on the farmers in India, especially on its effects on the livelihoods of the rural population, on food
security and on land issues by conducting case studies mainly in Chhattisgarh, Rajasthan and Maharashtra as
being among the states supporting Jatropha plantations (Shiva 2008). TERI developed a risk assessment for all
stages of the Jatropha Based Diesel production chain including rural development, social impact assessment,
alternative energy crops, Jatropha cultivation. Jatropha curcas has the potential to become a sustainable energy
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solution with regard to Social / rural development and food security, if restricted to wasteland and prudent use of
inputs i.e no direct competition with food crops. High labour requirements of the plant are important advantage
to create rural employment.
4. Economical aspects:
Estimating costs, analysing potential markets, demand, estimating revenues, and calculating expected
profit or loss are main components for analysis of economic viability. The main economic criteria are the total
capital investment cost, total manufacturing cost, and bio-diesel break-even price for bio diesel production.
Different researchers applied different economic criteria emphasizing different points of view to assess the bio-
diesel production processes. The total production cost includes the direct operation cost, indirect operation cost,
general expense, and depreciation. Therefore, total manufacturing cost is equal to total production cost minus
the credits of by products such as glycerine. The study conducted by Yii-Der et al., 2008 has used six major
economic cost factors, which include fixed capital cost, total capital investment cost, total manufacturing cost,
net annual profit after taxes, after tax rate of return, and bio-diesel break-even price (Yii-Der et al., 2008).
Production of Bio-diesel also supplements the economic growth by way of waste land utilization,
employment generation, entrepreneurship development, augmentation of additional source of power, increasing
share of organic manure in agriculture etc. Construction and operation of a biodiesel plant could provide rural
economic development opportunities by increasing demand for agricultural products and demand for labour
(Gustafson, 2003). The traditional top-down approach starts with the goal of a given share of bio-fuels in total
transport fuels, selects a path to achieve this target, calculates the amount of feedstock required to produce this
amount of bio-fuels and finds possible sources i.e. wasteland, marginal land, agriculture land diversion, import
etc. and finally predicts the impact on prices (USDA, 2008). Whereas bottom-up approach starts by considering
price dynamics of feedstock markets and approximates their impact on production levels of bio-fuels might
deliver a more realistic picture (Elobeid, 2006).
Martin Banse (2008) point out that substituting biomass for crude oil will have direct effects on the
crude oil market and may have indirect effects on the global agricultural markets through exchange rate
linkages. Initial investment cost may be higher for bio-fuel technologies, feedstock diversity and multi-feedstock
production technologies will play a critical role in reductions in production cost and making the fuel
economically viable (Linoj Kumar, 2005).
Scheffran, (2007) provided a framework for examining the availability, feasibility, economic viability
and sustainability of bio-energy sources in the Midwest. Meyer et al. (2008) indicated that a lack of government
support of the local bio-fuels industry can seriously affect its economic viability, especially in the early stages of
the industry’s development.
Wing-Tat Hung (2006) presented the empirical evidence on the effectiveness of the Government’s clean fuel
programs that offer tax subsidy to lower the consumption cost of clean fuels. The cost difference in running the
vehicles is the single most important factor in switching fuels to cleaner types. The taxation on fuel plays a
significant role in this connection. The prices of edible vegetable oils are higher than that of Diesel fuel and non-
edible crude vegetable oils take priority over the edible vegetable oils in bio-diesel production (Demirbas et al.,
2006).
For better acceptance of prospective Jatropha cultivation among farmers, it is important seed collection and oil
pressing centres are located close to the production sites to encourage investment in remote areas and ensure that
the seed cake by-product can be redistributed locally as bio-fertilizer (George Francis, 2005).
5. Environmental Viability:
The use of biodiesel in engines brings with it environmental benefits, such as a reduction in the
emission of particulate matter (PM), hydrocarbons (HC) and carbon monoxide (CO), in addition to a reduction
in the emission of carbon dioxide (CO2) which is a significant element in the greenhouse gas effect (. Fergusson
(2001) highlights the use of alternative fuels as being one of the technical solutions for reducing the emission of
pollutants in the transport sector. Agarwal (2007) showed that CO, CO2, and PM emissions were lower than the
emissions from diesel oil. However, the emissions of NOx were higher with different types of biodiesel.
When considering emissions of nitrogen oxides (NOx), carbon monoxide (CO) and smoke density,
rapeseed oil ethyl ester had less negative effect on the environment in comparison with that of rapeseed oil
methyl ester (Makareviciene et al., 2003).
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The smoke density and CO emissions are reduced with the use of all bio-diesel blends with respect to
that of the neat diesel fuel. The NOx emissions are slightly increased with the use of all bio-diesel blends
(Rakopoulos et al., 2008).
J. Narayana Reddy et al. (2006) reported reduction in the HC and smoke level in the case of Jatropha
oil as blend. Bio-oil is characterized by high viscosity, acidity and electrical conductivity, presence of water and
various oxygenated compounds, ash and other solid impurities (Stamatov et al., 2006).
R. Karthikeyana et al. (2007) reported that exhaust gas temperature and NOx are found lower than that
of diesel base line up to 50% load. Approximately 35% of higher CO emission is reported at full load of diesel
fuel engine and 48% of higher unburned HC emission and 45% reduced smoke are reported at full load of diesel
fuel engine.
V. Pradeep et al. (2007) reported that exhaust gas recirculation can be used to give NOx reduction up to
15% effectively without much adverse effect on the performance, smoke and other emissions. In comparison
with fossil diesel, bio-diesel shows better emission parameters. The environmental performance of road
transport improves by use of it, including decreased greenhouse emissions.
6. Conclusion
Various investigations and studies of technical, social, economic and environmental impacts of bio-
fuels indicate that it offers excellent promise as an alternative fuel for compression-ignition engine in the
transportation sector. Bio-fuel has been found to be an alternative fuel for compression-ignition engines with
different blending ratios because it helps in improving the thermal efficiency of engine, reducing brake specific
energy consumption with considerable reduction in the exhaust emissions;
Blends are the most feasible way for enhancing the bio-diesel share on the fuel market, giving an
appropriate income to farmers, competitive prices to end-users and requiring less taxation incentives and
exemptions. Factors related to social and economical aspects like employment generation, utilisation of
wasteland, diversion of agricultural land for Bio fuel production, food prices, reduction in import of fossil fuel
due to use of bio-fuel and energy prices can have significant impacts on bio-fuel development. It thus merits
further research and development before a final decision is taken on its potential as a mass production fuel for
the transportation sector. This review provides insights into the possible consequences of bio-fuel development
and use as regards to technical, social, economic and environmental impacts.
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