Oil marketing companies pay transport charges for Biodiesel, from manufacturing plant to their far away depot. They do not offer same facility for raw materials. Hence the source of raw material should be in the same area where Biodiesel plant will be located.

1. There are number of Palm Oil Refiners in Gujrat, from Kandla to Ahmedabad. Hence Plants based on Palm Stearine should be located adjacent to such a refinery.

2. There are a number of slaughter houses in UP, Bihar, Kerala and around Hyderabad. Hence Plants based on Animal Tallow should be adjacent to such a slaughter house.

3. If the plant is based on imported Palm Stearine, it should be close to sea port.

1. Rs. 106 per liter, in first Expression of Interest, in July 2022, produced from raw material other than UCO as raw material.

2. In March 2023, it was reduced to 86.67 per liter.

3. Base price of Biodiesel for the procurement period July to September 2023 was Rs.88.82 per Litre, but actual price on which the monthly Purchase Order shall be placed will be declared 7 days before the beginning of the procurement period and subsequently every month, which will be capped in the range of +/-2.5% of the base price published in the EOI.

4. No base price or quantity is specified in August 2023 Tender. It will be fixed by OMCs and declared in the notice inviting quantity bids to successful empaneled bidders.

5. In September 2023, it was reduced to 81.33 per liter.

6. No base price or quantity is specified in Tender released in November 2023. It will be fixed by OMCs and declared in the notice inviting quantity bids to successful empaneled bidders.

7. Base price of Biodiesel for the procurement period April 2024 to September 2024 shall be Rs. 81.33 per Litre, actual price on which the monthly PO shall be placed will be declared 3 days before the beginning of the procurement period and subsequently every month, which will be capped in the range of +/-10% of the base price published in the EOI.

To see Tenders for Procurement of BioDiesel issued by Oil Marketing Companies: July 2022 October 2022 January 2023 February 2023 March 2023 May 2023 June 2023 August 2023 September 2023 November 2023 April 2024 (Latest)

Expressions of Interest: July 2022 October 2022 September 2023 November 2023 April 2024 (Latest)

General Conditions in all the tender.: General conditions

Oil marketing companies buy Biodiesel at Depots mentioned in the latest Tender. Their conditions are
1. Minimum supply should be 100 Kiloliters per quarter at any depot.
2. It should be as per IS Stanadard, IS 15607 : 2022.
3. It should be delivered to their depots.

BioDiesel base price was earlier set at Rs. 106 per liter. Due to this prices of Palm Stearin and Animal Tallow (only raw materials available in India), shot up beyond Rs. 95 per kilogram. Now the price is around Rs. 80 per kilogram. It will benefit the parties producing raw materials, and BioDiesel Manufacturers may not afford the price. The raw material price will fluctate based on base price offered by OMCs.

To produce BioDiesel as per Indian Stanadard, IS 15607 : 2022 (or European Standard), you need to install Ultrasonic or Shock Wave generator. Also you need to use Centrifugal Separators for better separation. These two equipments are expensive. Installing these is not viable for plants having capacity less than 30,000 liters per day. However US Standard ASTM D-6751, can be achived without these two costly equipments.

Another hazard for small plants is, control of Methanol Storage. If not controlled properly, it may find its way to illicit liquor and deaths of poor people.

However BioDiesel is a favoured fuel by companies using Diesel for

• Stone Crusher
• Bulldozer, Excavators
• Diesel Electricity Generating Sets (DG Sets)

• Procurement of BioDiesel in Tanker Loads, or in Barrels from manufacturers is very easy, as compared to buying Diesel from Petroleum Oil Marketing Companies.

• BioDiesel is injected in Stone Crusher, Bulldozer, Excavators and DG Sets at higher pressure. Hence its viscosity is not a problem at that pressure.

• Stone Crusher and DG Set is a stationary engine. Bulldozer, Excavators are local vehicles. Hence, any problem can be attended at site.

• BioDiesel is not adulterated with Kerosine, MTO or Naphtha.

• You do not need to visit Petrol Pumps for supply of Diesel and Beg for supply of Diesel Oil.

• BioDiesel manufacturers are more co-operative than Oil companies.

To see likely suppliers of BioDiesel