Bio Diesel as an Alternative Green Fuel to Internal Combustion Diesel Engine

The bio-fuels such as alcohols and biodiesel have been proposed as alternatives to Internal Combustion Engine diesel fuel because of their bio degradability and non toxicity. These fuels have received wide attention because They significantly reduce exhaust emissions and the overall life cycle emissions of carbon dioxide (CO2) when they burnt as fuel. In 1973 OPEC (Organization of Petrol Exporting Countries, founded in 1960) put an embargo on oil production and started an oil pricing control strategy. Oil prices shot up four folds causing severe energy crisis the world over. This resulted in spiraling price rise of various commercial energy sources leading to global inflation. The world took this shock very seriously and for the first time a need for developing of alternative sources of energy was felt. Alternative energy sources were given serious consideration and huge funds were allocated for the development of these resources. Thus, 1973 is considered as the year of the first oil shock. Two more oil shocks jolted the world one in 1979 and the other one in 1990, which further focused the attention on alternative energy sources. Vegetable oils, edible or non- edible can be used as such or blended with diesel as diesel engine fuel. Some plants (e.g. Euphorbia lathyris) can be used to produce hydrocarbons, which have molecular weights very close to petroleum. It also produces sugar as a byproduct. However, the technology of such things is at the research stage, and its economic viability has not been assessed yet. Increased bio-diesel (Jatropha) oil production delivers economic benefits to India on the macroeconomic or national level as it reduces the nations fossil fuel import bill for diesel production; minimizing the expenditure of Indias foreign-currency reserves for fuel allowing India to increase its growing foreign currency reserves (which can be better spent on capital expenditures for industrial inputs and production).This paper critically examines the Entrepreneurship opportunities for bio-diesel production in India.