India's next crude oil import saving plan, served from kitchen

Govt considering proposal to allow conversion of used cooking oil into biodiesel

Soon, the used cooking oil from restaurants such as McDonald’s, Subway, KFC and Haldiram’s could run your diesel vehicles.

If the Narendra Modi-led government has its way, the oil used to fry food items will be converted into biodiesel. The Ministry of New and Renewable Energy (MNRE) has asked the Food Safety and Standards Authority of India (FSSAI) to come up with regulations on used cooking oil.

“We will rope in big food chains for collecting this usedcooking oil from them. A preliminary discussion with stakeholders in this industry was done earlier,” said a senior official from MNRE.

The final policy would be shaped only after FSSAI forms regulations for the quality, collection and usage of used cooking oil, said another official. The person added that both MNRE and the Ministry of Petroleum and Natural Gas (MoPNG) have requested FSSAI and are awaiting for their response.

According to data by the Biodiesel Association of India, India uses 22 million tonnes of vegetable oil for cooking purpose. “After usage, the used cooking oil that India generates is 3-4 million tonnes. If these food chains give it to the biodiesel industry, it can earn them Rs 40-45 a litre,” said Sandeep Chaturvedi, president of BiodieselAssociation of India.

Used cooking oil can also be used by soap manufacturers, provided the policy is tweaked to allow this.

The roadblock before biodiesel companies to go ahead with this plan is the lack of any proper policy in the country. Currently, used cooking oil is a blacklisted item for both export and import. According to government instructions, cooking oil should not be used for more than three times.

According to biodiesel manufacturers, this may a profitable move for large cooking oil consumers such as restaurants. “If this happens, it will create a lot of feedstock for the biodiesel industry,” Chaturvedi added.

Currently, biodiesel is used for blending with diesel. It is part of the overall strategy by the Dharmedra Pradhan-led petroleum ministry to cut energy imports and carbon emissions. Currently, 2,500 fuel retail outlets in the country are using biodiesel for blending, while the Railways uses it for five per cent blending of diesel it consumes.

Currently, India’s dependence on oil & gas imports accounts for about 80 per cent of all petroleum products and 70 per cent of the total natural gas consumed. The Modi government has a target to cut imports by half by 2030. Last year, MoPNG permitted direct sale of biodiesel (B100) to bulk consumers such as railways, shipping and state road transport corporations.

Currently, the Railways is the largest consumer of diesel in India with annual consumption of 2.8 billion litres, out of which biodiesel blending comes to around five per cent. During the last financial year, the Railways consumed about 6,000 kilo litres of biodiesel. The Railways has invited tenders for procuring 50,000 kilo litres of biodiesel this year. 

“With 10 per cent blending, the Railways can save Rs 392 crore a year on fuel bill,” Chaturvedi added.