SBBF to set up bio-diesel unit near Hyderabad

Our Hyderabad Bureau

25 February

SOUTHERN Biofe Bio Fuels (SBBF), the biotech venture of Internet service provider Southern Online Services, has planned to set up a 30-ton bio-diesel, manufacturing unit at Choutuppal near Hyderabad with an estimated investment of Rs. 15 Crores.

Speaking to ET, SOL's managing director, Mr N. Satish Kumar said the company had already acquired 10 acres of land near Choutuppal and clearances from different agencies have been obtained. SBBF's bio-diesel unit will refine and process oil from seeds such Pongamia Pinnata and Jatropha Curcas. The company has entered into agreements with local farmers for cultivating crops in wastelands.

The project, which is being assessed by German Technological Corporation, will be funded primarily through promoters to an extent of Rs.4 Crores, while the balance funding is being proposed via financial institutions.

With technical collaboration with German firm Lurgi, the company expects to commence production with a 30-ton per day capacity plant scaling the capacity up to 300 tonnes per day by in five years. It may be noted that Indian Oil Corporation has a bio-diesel unit as a lab facility with a capacity of 60 litres for every three days. SBBF's unit will be the first commercial bio-diesel unit.

Bio-diesel usage was in recent news when Indian Railways used in Shatabdi Express in the northern region on a test basis. The new fuel reduces the pollution and increases the engine efficiency. The Indian Railways, which consumes two billion of high speed diesel on its locomotives, has plans to use 5% bio-diesel in the first phase.