Biofuel
Biofuel is defined as solid, liquid or gaseous fuel obtained from relatively recently lifeless or living biological material. It is different from fossil fuel which is derived from long dead biological material. Globally, biofuels are most commonly used to power vehicles, heat homes, and for cooking. Agrofuels are biofuels which are produced from specific crops, rather than from waste processes such as landfill off-gassing or recycling vegetable oil.

There are two common strategies for producing liquid and gaseous agrofuels. One is to grow crops high in sugar (sugar cane, sugar beet, and sweet sorghum) or starch (corn/maize), and then use yeast fermentation to produce bioethanol (ethyl alcohol). The second is to grow plants that contain high amounts of vegetable oil, such as oil palm and soya bean and then use a transesterification process to produce biodiesel (methyl ester or ethyl ester).

Nepal is completely dependent on imported petroleum products, which account for almost 10 % of the country’s total energy needs. Diesel accounts for almost half of the total import value. This dependence on imported petroleum products not only drains a significant portion of the nation’s foreign exchange earnings, but also poses threats to long term energy security and to the environment.

In this scenario the Government of Nepal plans to reduce its reliance on imported diesel through its Biofuel Programme during the 2008 / 2009 fiscal year. The programme is one of 64 major government initiatives for developing a prosperous “New Nepal”. The government has tasked AEPC with formulating guidelines for the promotion of commercial and industrial scale biofuel production.

The government has chosen to focus its biodiesel production efforts on the plant Jatropha curcas (‘Sajiwan’ or ‘Kadam’ in Nepali). It is a drought resistant perennial which grows well in poor soil conditions and can already be found growing in many areas of the country. It is easy to establish, grows relatively quickly and lives without any special care, producing seeds for up to 50 years. The seeds have an oil content of about 37% which can be combusted as fuel without being refined or can be converted into biodiesel. It burns with a clear smoke-free flame, and has been successfully tested in simple diesel engines. The by-products of oil extraction make a good organic fertilizer while the oil also contains a natural insecticide, and glycerol, both of which are commercially valuable and can be obtained during the transesterification process.