Market overview:

Biomass is an important energy source contributing to more than 14% of the global energy supply. About 38% of such energy is consumed in developing countries, primarily in the rural and traditional sectors of the economy. Further, the vast agricultural produce in India also makes available large quantities of agro-residues, which can be used to generate power.

The strong demand for bio-fuel is in response not only to high crude petroleum prices, but also to the growing concerns about global climate change. Two major bio-fuels for the transportation sector, bio-ethanol and bio-diesel have gained worldwide acceptance.

In June 2007, the oil giant Bharat Petroleum signed a US$ 160 million deal with British bio-diesel producer D1 Oils, creating a JV, which will become the world’s largest producer of Jatropha oil by 2011.