Nizamabad: Biodiesel unit using automotive tech faces challenges in sourcing raw materials
08/04/2024 (The Indian Express), Nizamabad - The palm oil based biodiesel unit, Renjarla Energy Pvt Ltd., utilising automotive technology has been facing significant challenges in sourcing raw materials from various places, hindering production continuity. Due to this, entrepreneurs are unable to continue production and increase their business as per market demand.
In a bid to promote biodiesel and reduce dependence on petroleum products, the Union government has permitted a 20 percent mix of biodiesel in diesel. Therefore, companies and organisations have come forward to procure biodiesel, leading to increased demand nationwide.
A few years ago, Renjarlla Ramulu, an entrepreneur from Nizamabad, established the Renjarla unit, investing around Rs 5.5 crore, with a production target of 10 tonnes per day. This is the first biodiesel production unit with nanotechnology.
The businessman highlighted that while they previously had an agreement with an Indonesianorganisation to import palm oil, the Union government’s ban on palm oil imports due to the Ukraine-Russia war has forced them from sourcing raw materials from Karnataka, Kerala, Andhra Pradesh, Gujarat and other states, significantly increasing costs.
In Hyderabad, only 5,000 litres of raw material were available, due to which only four-five tonnes is being produced per day.
Speaking to TNIE, Ramulu said: “Biodiesel can be produced from palm oil, any edible and one-time used cooking oil, which is available in huge quantities in countries like Brazil, Indonesia, Singapore and several others. We should wait for two-more years for palm oil availability from nearby districts, where farmers have already begun cultivation with the help of the Agricultural department.”
Ramulu urged the Union and state governments to raise awareness about selling one-time used cooking oil for biodiesel production. This would help steady supply of raw material in the market, benefit households, hotels, restaurants, and tiffin centres across the state.
“If the governments take steps in providing raw materials, the production of biodiesel can increase to 10 tonnes per day, highlighting the presence of biodiesel units in Hyderabad and Warangal districts,” added Ramulu.