My First year MTech (Project Mgmt) students from Mumbai's Premier Technical Institute VJTI, were tasked to submit a Project as a part of their Supply Chain Management. They chose to do a socially relevant project, following up on the latest Government of India and Indian Railways initiative on Bio-toilets.
As a part of Project Management Course last semester, these students under "Swachch Bharat" mission did a project developing bio-toilets in Railway stations. This semester they followed up in handling the bio-waste as an alternative fuel source, as well as to facilitate its safe disposal.
My students are doing their bit for the country in evaluating an innovative solution. Appreciate if you could look through their work and encourage them for their future. In case you need to contact them, we have provided the contacts on their project material.
2. Overview
24-04-2017Humo-Diesel Supply Chain
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5.4
6.3
7.1 7.3
7.6
0
1
2
3
4
5
6
7
8
2012-13 2013-14 2014-15 2015-16 2016-17
GDP %
GDP Growth of India
Source: Central Statistics Office
• Growth will be driven by private
consumption, which has benefited from
lower energy prices and higher real incomes.
(Source: World Economic Outlook, IMF)
• Growth in India’s economy will drive
demand for energy across sectors. Hence,
access to adequate and reliable sources of
energy becomes vital.
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22 22
7 3 1 1
0
10
20
30
40
50
Energy Consumption
Consumption %
• The industry and transport sectors are
the largest end-users of energy in India
and account for half of the total energy
consumed.
• Use of Petroleum as a fuel will continue to
expand in transport sector, particularly road
& rail transport, for passenger and freight
movement.
Source: Central Electricity Authority, GOI
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3. Source: Petroleum Planning and Analysis Cell,
Government of India (GOI)
Oil consumption in Litres
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Believing India to be endowed with
significant potential for generating
energy through renewable resources, the
GOI is promoting and encouraging:
a) Ethanol derived from sugar
molasses/juice
for blending with gasoline,
b) Biodiesel derived from inedible oils
and oil waste for blending with
diesel, and
c) Bio-methanol and biosynthetic fuels.
Ministry Role
Railways Undertake plantation of
Jatropha over wastelands
along rail rights-of-way and
trials of biodiesel blended fuel
on railroad locomotives.
Institutional
Mechanism
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4. Present Demand for Diesel
( Rail and Shipping Industry)
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0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
2004 2006 2008 2010 2012 2014 2016
Fuel Used(Million Liters)
Fuel Used(Million Liters)
Source: Industry and trade sources, GOI
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5. Future Demand for Diesel
( Rail and Shipping Industry)
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5
0
1000
2000
3000
4000
5000
6000
7000
8000
2014 2016 2018 2020 2022 2024 2026 2028
Fuel Use Projection(Million Liters)
Fuel Used(Million Liters)
Source: Industry and trade sources, GOI
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6. Promoting Bio-Diesel
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• National Bio-Diesel Mission (NBM)
• Present blending scenario: 0.1 percent
• Launch of B5 (Five percent) Blending Mission
Alternative to
High Speed Diesel
• As India is the fourth (energy data) largest global
contributor to carbon emissions, the Government of
India (GOI) is targeting EURO-III and IV as reference
emission norms for vehicles, which in turn require
adoption of clean and green fuel.
Strict Emission
Norms
• India is the third-largest importer of crude oil after
the United States and China and continues to rely on
imports considerably. Therefore India should be self
sufficient in energy in order to narrow it’s current
account deficit.
Self sufficiency in
Energy
Objective: 1) To assist GOI in reaching ambitious mission of B20 (20% biodiesel)
2) To establish Humo-Diesel Supply Chain
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7. F1
F2
S1
S2
Jatropha
OVERVIEW OF SUPPLY CHAIN
Different
storages at
17 railway
zones
Push System Pull System
Diesel
Supplier
Diesel
Supplier
Blended
Diesel
Storage
Biodiesel
Blending
Depots
(West)
Biodiesel
Blending
Depot
(South)
Biodiesel
Storage
Biodiesel
Storage
Cultured Algae
Algae
Culturing
Unit
MFG.
PLANT
1
Algae
culture
MFG.
PLANT
2
Oil seed
extraction
Railway
Loco-shed
Shipyard
CH4Supply
Human faeces
S3
CO2
Supply
S1
S2
MFG.
PLANT
1
Algae
culture
MFG.
PLANT
2
Oil seed
extraction
Biodiesel
Storage
Biodiesel
Storage
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8. North western
Railway Zone:
1.Abu Road
locoshed
2.Phulera
Locoshed
Southern
Railway Zone:
1.Ernakulam
locoshed
2.Erode locoshed
Western Railway
Zone:
1.Ratlam
locoshed
2.Gandhidham
3.Sabarmati
Central Railway
Zone:
1.Kurla
2.Kalyan
3.Pune
West Central
Railway zone:
1.Itarsi loco shed
2.Katni loco shed
South East Zone:
1. Raipur
2. Motibagh
South Cental
Zone:
1. Gooty
2. Sonatnagar
3. Kazipet
4. Vijaywada
South west Zone:
1. Hubli
2. Bangalore
city
North Central
Zone:
1. Jhansi
2. Agra
North Eastern
Zone:
1. Gonda
2. Izzatnagar
East coast Zone:
Vishakhapatnam
Northen Zone:
1. Ludhiyana
2. Lucknow
3. Mughalsarai
Eastern Zone:
1. Belaghata
2. Andal
3. Jamalpur
East Central Zone:
1. Mughalsarai
2. Samastipur
Konkan Railway
Zone:
1. Panvel
2. Veer
South Eastern
Zone:
1. Kharagpur
2. Bokaru city
Northeast Frontier
Zone:
1. Guwahati
2. Silliguri
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9. Forecasted Demand of Humo Diesel
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Assumptions:
1. Projected as per national policy of B5 (5% blending)
2. Increased demand in 2nd and 4th quarter due to requirement of special trains
3. Winter Model of forecasting selected
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11. Distribution of 2018 DEMAND
jatropha
Algae
34.5%
65.5%
Total demand – 270 Million Litre
Jatropha Plantation:
• Total Demand: 177
Million Litre
• Land Requirement:
87,881 hectare
• Location of
Manufacturing Plant:
Baramati
Algae Plantation:
• Total Demand: 93
Million Litre
• Land Requirement:
4705 hectare
• Location of
Manufacturing
Plant: Baramati
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12. Process for Preparation of Biodiesel
Methane
Mixing Methanol
Catalyst
(NaOH/KOH)
Trans esterification
Separation
Biodiesel
Oil
( Jatropha oil/oil
from algae)
Crude
Biodiesel
Crude
Glycerine
Washing
CO2
Extraction of
Oil from Algae
Algae culture Bio Digester
Human Waste
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13. Design Of Distribution Network
Manufacturing Plant 1
Oil seed extraction
Inbound Shipment
Flow of Bio-Diesel
Flow of Information
Outbound Shipment
*I.R – Indian Railway
# - Storage capacity of 1400 K.L
Manufacturing Plant 2
Algae culture
Baramati
(Maharashtra)
Biodiesel Storage Tanks
(Pimpri-chinchwad, MH)
Storage Capacity
8 Underground Tanks(150KL) – 1.2
Million litres
7 High Capacity Tanks(100KL) - 0.7
Million litres
Biodiesel Storage Tanks
(Erode, TN)
Storage Capacity
10 Underground Tanks(150KL) – 1.5
Million litres
7 High Capacity Tanks(100KL) – 0.7
Millions Litres
Indian Railway Bio-Diesel
Blending Depot
Pune
(CR) #
Manglo
re (SR)
#
Tiruchi
rapalli
(SR) #
Erode
(SR) #
Palakka
d (SR) #
Wadi
(CR) #
Daund
(CR) #
119K.M
1096K.M
Banglor
e (SR) #
Outbound Shipment
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14. Facilities At Storage Tanks
Facility Pimpri-Chinchwad ( M.H) Erode (T.N)
Distance from mfg. plant 119 K.M 1096 K.M
Dedicated Capacity 150 KL x 8
(5 Tanks : Jatropha seeds
3 Tank: Algae culture)
100 KL x 7
(3 Tanks : Jatropha seeds
2 Tank: Algae culture)
150 KL x 10 (7 Tanks :
Jatropha seeds
3 Tank: Algae culture)
100 KL x 7 (5 Tanks :
Jatropha seeds
2 Tank: Algae culture)
Area:
•Total Area
•Covered shed Area
•Open Area
10,500 Sq. m
1,995 Sq. m
8,505 Sq. m
12,750 Sq. m
2422.5 Sq. m
10,327 Sq. m
Water ( Required in
every working day )
50 KL 50 KL
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15. Facilities At Manufacturing Plant
Facility Description
Location Baramati (Maharashtra)
Dedicated Capacity 500 KL
Biodiesel From Jatropha – 325 KL
Biodiesel From Algae Culture – 175 KL
Storage Capacity with Loco-
Loading Facility
100 KL x 4 tanks - Biodiesel From Jatropha
100KL x 2 tanks - Biodiesel From Algae Culture
Water ( Required in every working
day )
50 KL
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16. Suppliers of Raw material
• Methane and CO2 required can be collected from
bio digesters of bio toilets deployed in trains
having halts in following stations as well as from
platform toilets.
• Daund Railway station
• Manmad railway station
• Kalyan Railway station
Human Faeces
From railway
stations
• Central government and several state governments
provide fiscal incentives for supporting planting of
jatropha and other inedible oilseeds.
• Aurangabad
• Nashik
• Ahmednagar
Jatropha
oil seeds
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17. Humo-Diesel Supply Chain
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Pimpri-
Chinchwad
Erode
Palakka
d (SR)
Baramati
Manufacturing plant
16 km
426 km
84 km
277 km 494 km 141 km 143 km
119 km 1096 km
Pune
(CR)
Wadi
(CR)
Daund
(CR)
Banglor
e (SR)
Manglo
re (SR)
Tiruchi
rapalli(
SR)
Erode
(SR)
Transportation model for Biodiesel
Nasik
Ahmednagar
Aurangabad
272km
123km
238 km
Jatropha Collecting centres
Kalyan
Manmad
Daund
CH4 collection centres
35km
194 km
235km
0km
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18. Transportation Cost of Jatropha oilseeds
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Parameters Nasik Ahmednagar Aurangabad
Distance 272km 123km 238km
Mode of
transportation
Truck Truck Truck
Capacity of Tanker 16 Ton 16 Ton 16Ton
Cost per metric ton Rs 871 Rs 394 Rs 762
Total
transportation cost
Rs 13,936 Rs 6,300 Rs 12,200
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19. Transportation of biodiesel from Plant to Storage
facilities (Inbound Shipment)
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Parameters Baramati to Erode Baramati to Pimpri-
Chinchwad
Mode of
Transportation
Freight train Freight Train
Volumetric Capacity of
Train
2,478 Metric ton 2,292.15 Metric ton
Freight rate Rs. 2,747 per ton Rs 325 per ton
Total Transportation
cost per trip
Rs 68,07,066 Rs 7,45,923.75
Transportation cost per
litre
Rs 2.431 Rs 0.288
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20. Transportation of biodiesel from Storage facilities
to blending units(Outbound Shipment)
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Terminals Storage capacity
at IR locoshed (
in Tonnes)
Transportati
on cost per
Ton
Total
Transportati
on cost
Transportati
on cost per
litre
Chinchwad to
Pune
1,239 Rs 223 Rs 2,76,352 0.197
Chinchwad to
Daund
1,239 Rs 248 Rs 3,07,272 0.22
Erode to
Bangalore
1,239 Rs 598 Rs 7,40,922 0.53
Erode to
Mangalore
1,239 Rs 1,112 Rs 13,77,768 0.984
Erode to
Tiruchirapalli
1,239 Rs 520 Rs 6,44,280 0.469
Erode to
Palakkad
1,239 Rs 444 Rs 5,50,116 0.39
Transportation cost from Pimpri-Chinchwad to Wadi=Rs 36,505.6
Total Transportation Cost=Rs 39,33,215.6
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22. Information flow of Supply Chain
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Suppliers Manufacturers Distributors Blending Depot Customers
Product Flow
Information Flow
• Shipment can be tracked
• Coordination And Information Sharing
• Demand can be known
• Seasonal trends can be identified
• Alternative Modes of transportation
• Finances
• Strategy
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23. Cost of Biodiesel from Jatropha
Cultivation
Sr
No.
Component Demand Rate Total
Cost
1 Seed Cost 468000 Tonne Rs 10/kg 4.68 billion
2 Oil Extraction 468000 Tonne Rs 3/kg 1.404billion
3 Trans-Esterification 158*106 lit Rs 12/lit 1.896 billion
4 Methanol 18.96*106 lit Rs 25/lit 0.474 billion
Sub Total 8.454 billion
Recovery
1 Oil Meal 311*106kg Rs 6/kg 1.866 billion
2 Glycerol 47.8*106 kg Rs 35/kg 1.673 billion
Sub Total 3.539 billion
Cost of Bio- Diesel per litre Rs 31.68
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24. Cost of Biodiesel from Algae
Cultivation
Sr No. Component Demand Rate Total
Cost
1 Cost of Cultured
Algae(wet algae)
744000 Tonnes Rs. 2.5/kg/Acer 1.86 billion
2 Oil Extraction 93*106 Rs. 35/liter 3.255 billion
3 Oil Refining 93*106 Rs. 50/liter 4.650 billion
4 Trans-Esterification 246*106 lit Rs 12/kg 2.952 billion
5 CO2 Production 80.45*106 lit Rs 30/kg 2.416 billion
Sub Total 15.133 billion
Recovery
1 Oil Meal 484*106kg Rs 6/kg 2.904 billion
2 Glycerol 74.4*106 kg Rs 35/kg 2.604 billion
Sub Total 5.508 billion
Cost of Bio- Diesel per litre Rs 39.12
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25. Profit Evaluation from Both the
Plants
Sr.
No.
Particular Jatropha Plant Algae Plant
1. Production Cost of Biodiesel per
litre
Rs. 31.68 Rs. 39.12
2. Overheads Rs. 1.68 Rs. 1.8
3. Total Transportation Cost of
Biodiesel per litre (Including Taxes)
Rs. 15.85 Rs. 15.85
4. Total Cost of Biodiesel per litre Rs. 49.13 Rs. 56.77
5. Selling price of Biodiesel per liter Rs. 60 Rs. 60
6. Profit(%) 18.17% 5.38%
Note: Cost of Biodiesel from Algae plant is more than that from Jatropha plant due to
oil refining process.
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