Académique Documents
Professionnel Documents
Culture Documents
Authors:
Abstract
Bio-diesel is a clean burning alternative fuel, motivators for the production of Bio-Diesel in Pakistan
produced from domestic, renewable and world wide development in this field.
resources. It is Biodegradable, nontoxic, and
essentially free of sulfur and aromatics. Bio-Diesel is The actual theme of this paper is supply chain
usually blended with hydro-carbon diesel with ratios 10- development strategy in Pakistan, which covers
90 (called B-10) or 20-80 (called B-20). This Bio mix is a demand management, identification of inventory
tested model in various countries for use as alternative requirements, devising the production process flow,
fuel. deployment models and basic infrastructure
requirements.
Bio-Diesel can be produced from a number of
seed oils (used and un-used). The production process The attributes covered are availability of raw
for resources vary from one to another in terms of minor materials, production processes, handling,
operational deviations. The flow line from stakeholder transportation, distribution and storage between in
to consumer consists of growing of seeds, oil extraction, different stages. In the end, authors have described
chemical treatments and consumption. This flow line expected challenges and uncertainties in deploying
involves a number of characters that can play their supply chain of Bio-Diesel as an alternate fuel in
specific roles behind the stage. Pakistan, and the possible solutions.
The paper proposes a strategy for development of This paper does not take into account the
supply chain mechanism for use of Bio-Diesel as an economic aspect as a focal element of consideration.
alternative fuel in Pakistan. The rational of paper is The reason being that at this point of time, the best
introduction of Bio-Diesel including its viable sources in possible solution may terminate due to economic
Pakistan and its subsequent benefits, principle considerations. The intention is to device such system
that can economize itself with expansion and
deployment.
____________________________________________________________________
Project of Clean Power (Pvt.) Ltd. and AEDB Page 1 of 8
Strategy for Supply Chain Development of Bio-Diesel as an Alternative Fuel in Pakistan
___________________________________________________________________________
____________________________________________________________________
Project of Clean Power (Pvt.) Ltd. and AEDB Page 2 of 8
Strategy for Supply Chain Development of Bio-Diesel as an Alternative Fuel in Pakistan
___________________________________________________________________________
• Oil extracted from Pongamia Pinnata reserved for regular / routine cultivation.
seeds In first phase existing plantation of these
plants can be used. This plantation is
• Oil obtained through transesterification of scattered in Pakistan and no reliable data
waste vegetable oil exists for their locations. However, the
scattered availability will introduce a
constraint of difficulty in seed collection.
2.1 Supply Chain with respect to Thus planned plantation is must on a large
scale.
Bio-Diesel:
In this regard government has to take
Bio-Diesel, like any typical engineering following steps:
cycle, involves maximum elements of supply
chain, which are listed below: ¾ Offer of financial aids to farmers.
3.1.1 Raw Materials Availability: Collection of WVO from both the users
is a complex process and needs to be
established properly. Some suppliers of
• Pongamia Pinnata Seed WVO are already existing that can be
tabbed. For house hold users there may
Pongamia Pinnata can be cultivated as be a welfare oriented collection
a non-cash crop and does not necessarily mechanism like offering a bottle of clear
occupies the land, which is water in replacement of one bottle of
WVO.
____________________________________________________________________
Project of Clean Power (Pvt.) Ltd. and AEDB Page 3 of 8
Strategy for Supply Chain Development of Bio-Diesel as an Alternative Fuel in Pakistan
___________________________________________________________________________
This may be further improved by introduction in tankers. Here it is important to note that
of bigger containers and then to collection points WVO requires dedicated tankers due to its
at some places. exclusive chemical properties and those
tankers can not accommodate material other
than WVO.
Following steps are required for availability of
WVO:
3.4 Production of Bio-Diesel:
o Determination of fixed price for WVO.
3.4.2 Transesterification:
3.3 Transportation of Raw
Material: Transesterification is the chemical
conversion of WVO to Bio-Diesel. The flow
The transportation mechanism is available in of process can be managed both in the form
the country at wide scale with plenty of options. of flow line and batch production. The
Both road and rail transportation systems are process layout for both options is
recommended for seeds as well as WVO for internationally available with consideration of
transportation to wholesale market and lean set-up and maximum efficiency.
production units. The choice of road and rail Design and fabrication of equipment is not
option depends upon availability of road / rail complicated. Reference models can be
network and further requirement. Seeds can be imported and re-produced. The system
handled in existing dampers and likewise, WVO integration in the form of production plant is
a specialized role.
____________________________________________________________________
Project of Clean Power (Pvt.) Ltd. and AEDB Page 4 of 8
Strategy for Supply Chain Development of Bio-Diesel as an Alternative Fuel in Pakistan
___________________________________________________________________________
____________________________________________________________________
Project of Clean Power (Pvt.) Ltd. and AEDB Page 5 of 8
Strategy for Supply Chain Development of Bio-Diesel as an Alternative Fuel in Pakistan
___________________________________________________________________________
____________________________________________________________________
Project of Clean Power (Pvt.) Ltd. and AEDB Page 6 of 8
Strategy for Supply Chain Development of Bio-Diesel as an Alternative Fuel in Pakistan
___________________________________________________________________________
• Special relief to the following through tax • Fierce competition from existing
subsidies. petroleum industry
• Existing usages of WVO
• Non existing infrastructure, legislation,
o Farmers supply chain of raw material
• Expected higher price compared to
o Oil Production plants existing petroleum
• Un-awareness in general public and
o Suppliers of WVO most importantly in the Govt. sector.
• Expected Imbalance Between Supply
o Sales points (pumps). & Demand
• Poor Coordination, Communication
and Understanding among Players
• Lack of Project Endorsement
• Target Setting for Government Agencies.
____________________________________________________________________
Project of Clean Power (Pvt.) Ltd. and AEDB Page 7 of 8
Strategy for Supply Chain Development of Bio-Diesel as an Alternative Fuel in Pakistan
___________________________________________________________________________
8. ACKNOWLEDGEMENTS:
____________________________________________________________________
Project of Clean Power (Pvt.) Ltd. and AEDB Page 8 of 8