Prospects of Biofuels in Nepal: Opportunities and Challenges

Name: Nawaraj Dhakal

keyword: Biofuels

LCSH: Biomass -- energy -- Nepal

; Bioethanol

; Biodiesel

Abstract: Biofuels are the liquid fuels produced directly or indirectly from biomass. The most common biofuels established at present as fossil fuel substitutes are bioethanol produced from sugar or starch containing feedstocks and biodiesel produced from vegetable oils and animal fats. This study was conducted with the objectives to review the status Nepal's biofuel sector, to investigate the potential feedstocks & institutional aspects, and to analyze the opportunities & challenges. The research is based on the secondary data collected from various publications, reports and official documents and the primary data collected through direct interviews and questionnaires. The sectoral review revealed that, although government decisions made in 2003 and 2008 to go for bioethanol-petrol blending have not been implemented yet, a number of activities have been initiated on biofuels from government, non government and private sectors. Even though specific policy on biofuels is absent, Biofuel Program initiated by Government from fiscal year (FY) 2008/09 has set off some crucial activities in the sector. A few nongovernmental projects have demonstrated crude jatropha oil as diesel substitute. Also, infrastructures are in place for producing 30 kilo liters/day of bioethanol and 2 kilo liters/day of biodiesel. Out of the country's total land area of 14.718 million hectares (Mha), 4.356 Mha (29.6%) of marginal/unused land {grassland & pasture (12%), shrub (10.6%), and unused agriculture land (7%)} is available for energy cropping, without causing any changes in forest and cultivated agriculture land. The production of cereals and oilseeds is inadequate to meet the domestic food and cooking oil demand, which rules out the possibility of using cereals and edible oils as biofuel feedstocks. Molasses is a potential bioethanol feedstock; 70% of country's sugarcane production goes to sugar industry and molasses recovery is 4.5%. In a reference case for FY 2008/09, assuming bioethanol yield of 220 liters/MT, utilization of 76.1% and 38.1% of molasses for bioethanol production could meet the nation's E10 and E5 demand respectively. Potential biodiesel feedstocks are cottonseed, Jatropha curcas & other non edible oil seeds, waste cooking oils & animal fat; however, the quantitative records are still insufficient. Revival of a currently diminishing cotton production can supply cotton to thread/textile industry and cottonseed to biodiesel industry. Despite wide familiarization of J. curcas, quantitative data on local production are not available yet. Other potential non edible oilseeds include castor (Ricinus communis), karanj (Pongamia pinnata), soapnut (Sapindus mukorossi), butter tree (Diploknema butyracea), sal (Shorea robusta) etc., but quantitative data are still lacking. The great majority of stakeholders also believe molasses and J. curcas & other non edible oilseeds as bioethanol and biodiesel feedstocks respectively. Alternative Energy Promotion Centre and Nepal Oil Corporation are the key players of biofuel sector. Coordination from a high level body like National Planning Commission can ease the sector development in present context; setting up a National Biofuels Development Board is eventually necessary. From the stakeholders' point of view, foreign currency saving by reducing the fossil fuel imports is the main benefit through biofuels; government policy is the topmost driving factor; inadequacy of feedstocks is the major barrier; and lack of awareness is the priority issue to be tackled for the advancement of biofuels in Nepal. Formulation of national biofuel policy and discrete strategies for bioethanol and biodiesel, authorizing the lead institution, awareness & capacity building, involvement of private sector through public private partnership, and developing/adopting quality standards & guidelines and provision of a quality testing body are the key recommendations made for the development of sector. Hence, the production of bioethanol from molasses and biodiesel from non edible oils and animal fat have good prospects in Nepal for saving foreign currency by partial replacement of imported fossil fuels and formulating suitable policy measures and developing institutional capacities are vital to achieve these goals

NARESUAN UNIVERSITY. NARESUAN UNIVERSITY LIBRARY

Address: PHITSANULOK

Email: library@nu.ac.th

Name: Sukruedee Sukchai

Role: Advisor

Name: Nipon Ketjoy

Role: Co-Advisor

Created: 2011

Modified: 2026-06-23

Issued: 2026-04-03

วิทยานิพนธ์/Thesis

application/pdf

eng

DegreeName: Master of Science

Level: Master's degree

Descipline: Renewable Energy

Grantor: Naresuan University

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