New Delhi, May 04, 2021: Minister of Petroleum & Natural Gas and Steel, Dharmendra Pradhan today remotely flagged off the first supply of UCO (Used Cooking Oil) based Biodiesel blended Diesel under the EOI Scheme from IndianOil’s Tikrikalan Terminal, Delhi. Secretary, Ministry of Petroleum & Natural Gas Tarun Kapoor and Chairman, IndianOil S M Vaidya were also present on the occasion.
To create an eco-system for collection and conversion of UCO into Biodiesel and developing entrepreneurship opportunities, Minister of Petroleum and Natural Gas & Steel, along with Minister of Health & Family Welfare, Science & Technology and Earth Sciences, had initiated Expressions of Interest for “Procurement of Bio-diesel produced from Used Cooking Oil” on the occasion of World Biofuel Day on 10th August 2019. Such “Expressions of Interest” are being periodically released by Oil Marketing Companies (OMCs). In the first phase, 11 EoIs were floated between 10.08.2019 to 09.11.2020 for 200 locations. Publication of EoIs has been extended for one more year up to 31.12.2021, for 300 locations across the country.
Under this initiative, OMCs offer periodically incremental price guarantees for five years and extend off-take guarantees for ten years to prospective entrepreneurs. So far, IndianOil has also issued 23 LOIs for Biodiesel plants with a total capacity of 22.95 Cr Litres (557.57 TPD). Under this initiative, IndianOil has received 51KL of UCO-Biodiesel at its Tikrikalan terminal in Delhi as of 31.3.2021.
Speaking on the occasion, Dharmendra Pradhan complimented the Oil industry on the stellar role played by them in keeping the fuel lines running despite the stiff challenges of the pandemic. He also lauded the OMCs for going beyond the usual business imperatives by extending support for medical oxygen supply to the nation in this crisis. Pradhan also appreciated IndianOil’s leadership role in smoothening the Liquid oxygen logistics in the country through various initiatives.
Regarding the first supply of UCO-based Biodiesel from IndianOil’s Tikrikalan Terminal, Pradhan said, “This is a landmark in India’s pursuance of Biofuels and will have a positive impact on the environment. This initiative will garner substantial economic benefits for the nation by shoring up indigenous Biodiesel supply, reducing import dependence, and generating rural employment”. He appreciated the proactive role played by OMCs in this direction and shared that 30 LOIs have already been issued.
Biodiesel is an alternative fuel, similar to conventional or ‘fossil’ diesel. It can be produced from vegetable oils, animal fats, tallow and waste cooking oil. A significant advantage of Biodiesel is its carbon-neutrality, i.e. the oilseed absorbs the same amount of CO2 as is released when the fuel is combusted in a vehicle. Also, Biodiesel is rapidly biodegradable and completely non-toxic.