Hi all,
I have been a lurkers for some times. I am Swiss (from the French speaking 
side) living in Nepal. I am trying to learn as much as possible during my free 
time about  biodiesel as I think that it may be a good project opportunity, 
both for the environnement (Kathmandu being one of the most polluted city of 
the planet) as well as a supplementary source of income for the farmers 
producing the oil seeds. I have not study the economic yet and therefore I am 
not sure about the viability of my idea.

Anyway, I thought the under may add to the general knowledge of the world fuel 
landscape.

Namaste from Kathmandu,
Olivier


Ethanol Mix will Make Petrol Cheaper

By Milan Mani Sharma 


With an aim to use ethyl alcohol in the transportation sector and reduce 
dependency on imported petrol, the Cabinet has approved a proposal to mix 
ethanol with petrol. It will also effect a reduction in the price of petrol.


The decision, which was taken during the last Cabinet meeting, allows mixing of 
10 per cent ethanol in petrol, according to Dinesh Chandra Pyakurel, Secretary 
at the Ministry of Industry, Commerce and Supplies (MoICS), who informed The 
Kathmandu Post, "We're planning to enforce the decision from January 15, 2003." 
Once implemented, it will directly lower petrol price by about Rs. 4 per litre, 
said a member of the committee. The price of ethanol is far cheaper at Rs. 10 
per litre while consumers are currently paying Rs. 54 for a litre of petrol.


The exercise to use ethanol in petrol was started about three years ago when 
experts, going by international practices, suggested to the government to 
follow the trend. A committee constituted to study the issue had identified the 
idea that would save the country millions of rupees otherwise spent on the 
import of petrol.


"This will directly lessen the importation of petrol by 10 percent," said a 
senior official at the Nepal Oil Corporation (NOC). "Considering the quantity 
of petrol import, which averages at 60,000 kilolitres per annum, this will save 
the country's foreign currency reserve by about Rs. 300 million at the current 
import rate," he added. Mixing of ethanol in certain proportion with petrol 
does not affect the engines of vehicles. Instead, it lessens the exhaust of 
carbon. Thus it has positive impact on the environment. 


Given the current types of engines in use in the country, the committee has 
concluded that the mixing could be done up to the proportion of 24 per cent in 
the vehicular fuel without any adverse impact on the engine. Internationally, 
the proportion of such mixing is higher. 

"However, we recommended to the government to adopt it on a lower side to begin 
with," said the committee member.


Meanwhile, the MoICS has constituted a committee headed by the Director General 
of the Department of Standards and Metrology to work out the technicalities and 
procedures to implement the decision.


"The decision on whether to mix the two products at NOC's storage facilities or 
at the retail supply outlets would be taken after the committee submits its 
report," said Secretary Pyakurel. The latest decision would also support sugar 
manufacturers that are going through a rough phase in recent years. Ethanol is 
a by-product of sugar refinery and is mostly used in fermenting wine and other 
alcoholic beverages. It is also supplied to paint manufacturers for use as a 
raw material in enamel production, among others. "The decision has opened a new 
business avenue for sugar producers," said ministry officials. 


However, experts note that the major challenge for the government would lie in 
maintaining the proportion of mixture. "Being a cheaper product, petrol 
suppliers may tend to increase the proportion of the ethanol content," they 
cautioned.


Source: The Kathmandu Post, 21 November 2001



[Non-text portions of this message have been removed]



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