The document discusses the challenges facing the development of biofuels markets in India and Asia. In India, the government has an ambitious target to blend 20% biodiesel into fuel by 2016-17, but has only reached B5 so far. This is partly due to debates over using crops for fuel versus food. Meanwhile, biodiesel demand is booming in Malaysia and Indonesia, with Malaysia introducing a B5 mandate in 2011 and Indonesia already blending biodiesel since 2006. The company Implico provides automation technology for palm oil production, which is increasingly used for biodiesel in the region.

1. biofuels asia
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Michael Martens, Implico’s managing partner, speaks to about the
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Ready and waiting
ndia, in terms of biofuels, As a result, the government industry really wants to deliver biodiesel, slashing traditional
I is very much like Europe,
the managing partner
of software solutions
provider Implico, Michael
Martens, observes.
began to establish biofuels
crops on wasteland – what
seemed to be a suitable
solution in terms of
addressing climate change
biofuels, we are ready.
‘As with any fuel retailer
around the world, the
companies in India will need
to accommodate the needs
diesel use by almost 91.2
million litres a year.
With the implementation
of this target, Malaysia
became the second country
Back in 2011 Germany and improving energy security, of customers who expect to introduce B5, behind only
implemented an E10 blend at while at the same time saving a range of energy sources its neighbour Indonesia,
the pump and motorists were ‘good’ land for the production offered at the point of sale. which has been blending 5%
wary, leading to production of food crops. Nevertheless, Companies who insist on biodiesel into its conventional
chaos and shortages of it soon came to light that any selling nothing other than diesel transportation fuel in
conventional petrol. This even crops harvested on these standard crude oil-based select regions since 2006.
resulted in some politicians otherwise useless wastelands petrol at the pump will simply Last year Indonesia
calling that the mandate KPK UV[ OH]L LMÄJPLU[ LULYN` disappear from the market, manufactured 2.2 million
be scrapped altogether. output due to poor soil quality. regardless of the size of tonnes of biodiesel from
A similar story can be So in order to try and meet their infrastructure. The palm oil – 10.5% of its total
seen in India. ‘If you look at its biofuels goals with high winners will be the dynamic biodiesel production. This is
what has happened in the energy crops while keeping companies, the ones who more than double its 2010
European biofuels industry its people fed, India turned have set up their future- production volume of 1 million
over the last 10 years, there away from edible feedstocks proof supply chain in good [VUULZ HUK H ZPNUPÄJHU[
are similar problems in such as sugarcane and time; a supply chain that is, rise from 2007 when just
developing India’s biofuels palm oil, and headed into HIV]L HSS OPNOS` ÅL_PISL HUK 1% of its biodiesel was
market,’ Martens says. the ocean. Even if the initial capable of assimilating any made from crude palm oil.
The Indian government algae-to-biodiesel tests did type of new product or service Implico is cashing in on this
has established an ambitious not appear promising, the both quickly and easily.’ demand for palm oil with its
target for the nation to be direction seems to be right; automation system OpenTAS,
blending 20% of all biodiesel HSNHL ^PSS KLÄUP[LS` ILJVTL which has been adapted for
into regular fuel by 2016-17. an important part of the use in the palm oil industry.
However, today the country renewable energy mix. While biofuels is struggling As Martens explains: ‘Palm
has not even reached B5 in In March earlier this year to penetrate India’s oil is very similar to regular
its regular diesel, causing public holding company transportation fuel market, oil found in the oil and gas
Martens to speculate that World Health Energy Holdings quite the opposite is industry. It has exactly the
‘globally the industry is signed a letter of intent happening 2,000 miles same needs; how it needs
not yet ready to deliver with Indian industrial and away in Malaysia and to be measured and how
this amount of biofuel’. transport company Prime nearly 3,000 miles away in [OL LU[PYL ÅV^ MVY [OL ZWWS`
to develop a $100 million Indonesia. Here, biodiesel is chain is processed, for
India’s crop conundrum (€81.6 million) 250 acre in incredibly high demand. example. The only difference
algae production area and On 1 June 2011 Malaysia is the upstream area as the
Part of this reluctance to adopt biodiesel production plant. introduced its B5 mandate, fruits need to be dealt with.
biofuels stems from the food which began in Putrajaya. It is After the oil is squeezed from
versus fuel debate. The nation Ready for biofuels? expected the biodiesel blend the fruit, the same supply
has a huge population growth, will be rolled out nationwide chain rules follow. The supply
between 8 and 9%, and this For the time being at least, by the end of 2013, and ÅV^ MVY [OL WHST VPS PUKZ[Y`
is already in line with the Implico’s automation the government predicts is exactly the same that
8-9% consumption growth. technology will only be that around 50,000 tonnes we have for the oil industry
Martens poses the question: required for the oil and gas a month of biodiesel will so we have no different.’
‘How do you decide where sector in India, and not be consumed domestically Today Implico’s OpenTAS
to put the sugarcane? Feed yet the biofuels industry. by the end of this year. If system is installed at
the people or put it in your Nevertheless, Martens these predictions are true, Sime Darby’s palm oil
cars? Most people say feed ensures that his company Malaysia would need a plantation and palm
[OL WLVWSL ÄYZ[ H JVTTVU is ‘ready to face these monthly supply of 7.6 million VPS YLÄULY` WYVKJ[PVU
view on the biofuels problem.’ problems’. He says: ‘If the litres of palm oil-derived facility in Malaysia. O
40 august 2012 biofuels international