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生物论文范文:生物燃料的发展趋势
 

Statement of originality and authenticity

 

Chapter 1- Introduction

 

1.1 Background and Context

 

A non conventional source of fuel that is obtained from the residues of crop plants and animals is known as biofuel (Yacobucci and Schnepf, 2010). Biofuels have rapidly acquired the status of an attractive alternate for the fossil fuels and are being used in transport such as road, water and air transport. Many developed and developing countries are moving towards measured surrogating of fossil fuels with biofuels. Biofuel are generally of two types, the ethanol and biodiesel.

 

Biofuel is a term that entails both bio-ethanol and biodiesel is the foremost candidate for replacement of petroleum oils in transportation. Biofuel, as its name indicates, is derived from biomass. Mostly it is synthesized by means of food crops residues such as sugarcane, maize, wheat etc. Biomass is available in different forms and almost all forms of biomass can be utilized for the production of biofuels (Van der Laaka et al., 2007). Different crops can be used for the efficient production of biofuels that enables different countries of the world to use the most common crops in their regions.

 

The rapid increase of biofuel production is the result of recent economical, political and environmental developments round the globe (Singh, 2008). One of the most important developments in the recent years is sudden rise in crude oil prices, the oil prices reached as high as $140 per barrel. The economies of developed as well as developing countries have been threatened by such a huge hike in crude oil prices.

 

According to the report published by International Energy Agency (IEA) in 2005 states that the oil importing countries have put biofuels as the first priority agenda after the recent changes in the global oil prices. Petroleum oils have been and still are the life blood for the industries of the developed as well as underdeveloped countries, but recent events on international scene have put their energy security under threat.

 

The increased awareness of environmental issues produced due to burning of fossil fuels has also increased the importance of biofuels that are considered more environmental friendly. The emission of green house gases has proved to be a threat for the existence of life on this planet. In this scenario the biofuels are the only alternative for the hydrocarbon based fuels and they are of great importance for governments as well as consumers. The governments of numerous developing countries including India are taking steps to promote biofuels and biofuel industry as a replacement of fossil fuels (Charles, et al., 2007). Biofuels are relatively cheaper than the fossil fuels; industry and business necessitate continuous mobilization of goods from one place to other places and require economical fuel for this purpose.

 

Another important notion about the fossil fuels that is of great importance andenhances the needs for the development of the biofuel industry is the fact that biofuels are non renewable resources of energy. They will run out ultimately and require million of years for their formation; this fact also necessitates all countries including India to move forward towards the renewable sources of energy. Biofuels as stated above are synthesized by utilizing crop and animal residues are the most suitable and renewable energy replacement for fossil fuels. Governments, both the regional and national, are making policies to promote biofuels by making different policies to enhance biofuels production.

 

 

India has a vast economy and to support this economy it heavily relies on the fossil fuels but the problems and events stated above have caused energy insecurity for the country.

 

To cope with this insecurity in the energy sector, Indian government has announced to increase the consumption of biofuels in transportation up to 20%. This will help to reduce the reliance on the crude petroleum oils that are currently used to fulfill more than 90% of the energy requirements of the country. The establishment of biofuel industry can be of great help to reduce unemployment in the rural areas, Government is adapting policies to encourage foreign as well as local investors to establish biofuel production units in the country to meet its goal of 20% consumption of biofuels in transport sector. Biofuel industry is still immature in India, the plants for production of bio-methanol are in operation but the biodiesel industry is a nascent industry in India.

 

There is want of a profitable business strategy for the development of biofuel industry in India, the establishment of such a strategy is essential for the attraction of foreign direct investment for this industry as well as the strategy will help the existing firms to adapt a profitable strategy. Keeping the above discussion in view, we formulate the research question for this study, “What is the profitable business strategy for the development of biofuel industry in India?”

 

1.2 Aims and Objectives

 

Biofuel industry is still in its early age in India and other developing countries but to cope with the energy insecurity that is related to the use of fossil fuels, government are keen to establish biofuel industry in India. The policies in this regard are encouraging for the local as well as foreign investors to take a plunge into this newly evolving industry. Keeping in view the current status of the biofuel industry in India, the current study is conducted to achieve following aims and objectives.

 

The core objectives of this study are:

 

To scrutinize the existing condition of energy economics in India.

 

To evaluate the existing situation of biofuel industry in India.

 

To develop a profitable business strategy for biofuel industry of India and devise recommendations for the investors and stakeholders.

 

1.3 Research Questions

 

What are the existing conditions of biofuel industry in India?

 

What are the existing and potential crops that can be used for the economical production of biofuel in India?

 

 

What should be the strategy for biofuel production in India to reduce cost of production and enhance the profit?

 

1.4 Scope and Importance

 

Strong resolve of the Indian government to enhance the biofuel production and to cope with the energy insecurity issue in the near future, these circumstances render our project cosmic in scope. India is one of the largest economies of the world, multinationals involved in energy sector as well as the new firms that are planning to enter into the energy production sector by establishing biofuel industry in India will be interested a lot in the development of profitable business strategy for biofuel industry. There are two types of biofuel industries, one for the production of bio-methanol while the second is concerned with the production of the biodiesel. The industry for the production of bio-methanol has some roots in India and it is evolving successfully but the biodiesel industry is nascent and has numerous opportunities for the investors.

 

The bio-methanol is replacement for patrol while the biodiesel is the replacement of the diesel oil; diesel is the type of petroleum oils that is mostly used in transportation. This situation is encouraging for the new firms to enter the market because there is no competition in the present situation in this sector. The entering firms will be the leaders in the market as far as the production of biodiesel is concerned. As described above, the current study deals with the formation of profitable business strategy for biofuel industry, it involves the strategy for both the bio-methanol and biodiesel.

 

Biofuels enjoy numerous advantages over the fossil fuels, it is relatively economical and can enhance the levels of energy security because is a renewable source of energy rather than being nor renewable like fossil fuels. A report published by United States Department of Energy (2007) reveals that biofuels are green energy sources because they do not add to the greenhouse gases in atmosphere. The green house gases that are emitted due to burning of biofuels are reabsorbed by the crop plants that are sown for the production of biofuels. Increase in green house gases in the atmosphere is one of the serious concerns related to consumption of fossil fuels and it serves as a rationale to use biofuels.

 

This project has great importance because it will help to reduce green house gases and global warming by increasing the biofuel consumption and reducing the fossil fuels consumption. The establishment of biofuel industries in the rural areas will guarantee more employment opportunities for the inhabitants of these areas. Improvement in transportation infrastructure, both roads and railways, will be the result of this project. The per capita income will be positively affected by the results of this study.