SBBF to set up Rs 15 crore bio-diesel plant
Ties up with German company Lurgi for technology transfer
Regional Bureau in Hyderabad
Published : February 26, 2004
Southern Biofe Bio Fuels (SBBF) is planning to set up a Rs 15
crore bio-diesel manufacturing plant near the city.
founded by the promoters of city-based ISP (internet service
provider) Southern Online Services, has entered into an alliance
with German company Lurgi for technology transfer.
the first phase, we would like to set up the plant with a 30-tonne
per day capacity which would be expanded to 300 tonne per day
by the end of the fifth year,” N Satish Kumar, managing
director of Southern Online, told Business Standard .
will be the first commercial bio-diesel production unit in the
country. We have entered into a tie-up with Lurgi, a German-based
company, for obtaining the technology for the plant,”
company feels that the abundant availability of wastelands near
the proposed plant site will make it easier for the procurement
of oil-bearing seeds such as pongamia pinnata, jatropha curcas
etc by entering into an arrangement with the local farmers and
tribals. It has already acquired 10 acres of land to set up
the plant near Choutuppal, 50 km from Hyderabad.
the advantages of bio-diesel, he said that it reduced pollution
and increased the engine efficiency of the vehicles. “The
production of bio-diesel brings wasteland under cultivation
as production of bio-diesel requires oil producing vegetable
seeds as raw material. This results in twin benefits –
the green cover will increase and farmers can earn more,”
he said, adding, “Unlike conventional diesel, bio-diesel
fuel can be used in two forms – as a 100 per cent replacement
to the normal fuel, which requires the fuel flowing rubber pipes
to be replaced with Teflon pipes, and in the other form, the
diesel can be mixed with the conventional diesel in the 20:80
ratio which requires no modification to the engines.
company has already received an order from the Indian Railways
for the proposed production of the fuel, subject to supplying
it at a lower price than the conventional diesel. Additionally,
SBBF's bio-diesel needs to conform to the American Society for
Testing Materials Standards.
of the proposed Rs 15 crore project cost, the promoters plan
to bring in Rs 4 crore and the rest will be obilized through
a term loan from the German Technological Cooperation, a German