Indian Oil Corporation has kicked-off the supply of diesel that is blended with biodiesel made from used cooking oil, the firm said in a statement on Tuesday.
“This initiative will garner substantial economic benefits for the nation by shoring up indigenous Biodiesel supply, reducing import dependence, and generating rural employment,” Minister of Petroleum & Natural Gas Dharmendra Pradhan said while flagging-off the first supply from Indian Oil’s Tikrikalan Terminal.
Oil marketing companies have already issued 30 letters of intent to biodiesel suppliers so far. Under the initiative, OMCs offer periodically incremental price guarantees for five years and extend off-take guarantees for ten years to prospective bidders.
So far, Indian Oil has issued 23 LOIs for biodiesel plants with a total capacity of 557.57 tonnes per day, the statement added. The firm has received 51 kilolitres of biodiesel made from used cooking oil at its Tikrikalan terminal in Delhi. It has also started constructing eight biodiesel plants across Uttar Pradesh, Gujarat, and Madhya Pradesh.
“Feedstock availability in biodiesel is a challenge, and leveraging UCO can be a major breakthrough that will enable us to reach the target of 5 per cent Biodiesel blending,” said Petroleum & Natural Gas Secretary Tarun Kapoor.