Biodiesel initiative halted in India

A biofuel initiative in India to mix pongemia oil with diesel has been stopped as the utility has to purchase fuel in the open market.

The state-run Karnataka State Road Transport Corporation (KSRTC) has operated under the initiative for six years, but price hikes on bulk purchase of diesel meant it was incurring losses through purchasing on the open market and couldnot blend using public pumps.

KSRTC launched the initiative of blending of diesel with ethanol and a mix of pongemia oil in 2005 in about 80 buses belonging to Doddaballapur depot. The project extended to several other depots, including Bangalore where around 1,000 buses ran on the blend until recently.

The company has reportedly said it will resume blending when diesel prices balance out.