The Indian biodiesel market requirement was 0.17 million tonnes in FY-2021 and is expected to reach 0.26 million tonnes by FY-2030, rising at an 8.60 percent CAGR until 2030. Increasing crude oil import bills have driven the Indian government to shift to indigenous fuel alternatives generated from biological raw materials or feed stocks, which will be the most significant game-changer in the future. With the initiation of the National Policy on Biofuels in 2019, the necessity for biodiesel is set to see an uphill trend in the coming years.
India’s initiative towards advocating cleaner fuels is all set to increase the country’s overall biodiesel requirement. As India's primary energy consumption is expected to double over the next two decades, the usage of cleaner fuel alternatives will continue to drive biodiesel fuel sales.
The transport sector, railways, and industries are the major biodiesel end-users in India and offer vast potential to the biofuel market, over other hydrocarbon based liquid and gaseous fuels. AR Energy Group operates as Chemenergy Biofuels, which is a multi-feed stock Bio Diesel Manufacturing plant in Northern part of India with capacity of 6000 MT per month production, Carewell Energy as the FSSAI Authorized aggregator effecting the collection of used cooking oil in the Southern States of India.
Significantly, AR Energy Group is one of the fastest-growing business entities that lay its expertise in providing Distilled Biodiesel (B100), Boiler-Grade Biodiesel (B100), Crude Glycerine, Refined Glycerine, Refined Bleached Deodorized Palm Stearin, Crude Palm Oil, Tallow Oil, Desiccant Silica Gel, and more, as well as engineering consultants for biodiesel plants. AR Energy Group has established strong and enduring relationships with clients from manufacturing, pharma, specialty chemicals, ports and material handling, infrastructure and mining, and logistics in a short period of five years, demonstrating a competitive edge over co-players in this industry, service and consistency, and growing revenue to over $20 million in the time of business and said to keep pace with the market CAGR.
AR Energy’s core business practices include consistency, purity, and quality, along with an exceptional automated process, segregated storage, high volume, and a nationwide footprint. With several manufacturing locations and offices around the country, the firm is collaborating fluidly and capitalizing on each other's expertise to address the requirements of all Indian cities with prompt action. "We have ensured our feed stocks are sourced after validation from our research and testing center and the manufacturing facility to increase the reliability factor of the equipment and utility components", signifies Abdul Rahamon S, Founder (AREG) & Director at Chemenergy Biofuels (CBPL).
One of the key aspects that differentiate AR Energy from the rest of the competitors that are providing similar solutions is the technology in its manufacturing facilities with capability to handle over 200 MT of multi feed stock per day based at Khurja, UP under Chemenergy Biofuels (CBPL) contributes to the India’s Oil Marketing Companies (IOCL, BPCL & HPCL) B100 blending program
through tenders - the capability to handle varied feed stock including Used Cooking Oil (UCO) aggregated through FSSAI authorized aggregator Carewell Energy & the supply chain to cater customers across the geography.
The aforesaid characteristics have ensured consistency in its product quality, as well as a seamless supply connection during lean times, giving AR Energy a unique position in the market with a stable set of business entities. Further, AR Energy is equipped with a dedicated group of dynamic individuals committed to higher standards of quality and excellence, on-the-ground experts who provide local knowledge and execution support, and experienced business advisors who assist in navigating the challenges and mitigating the risks associated with doing business in India.
Used Cooking Oil is the prime feed stock in focus, aggregated through Carewell Energy across the southern states of India, which contributes to our GoIs noble initiative of reducing carbon footprint, reducing dependency of fossil fuel imports and supporting GOIs FSSAI RUCO initiative (where the used cooking oil adulteration is averted).
Biodiesel, unlike diesel, tends to form crystals in cold temperatures, which could lead to filter plugging; AR Energy ensures that an appropriate feed stock is adopted, where the cold temperature properties are improved. In addition, the company has partnered with global technical houses to improve the pour point features of biodiesel by leveraging cutting-edge catalytic technology. During the winter season, the firm has maintained constancy in supplies for its customers running their fleet and machinery in the most remote corners of the country. Initially, AR Energy started focusing on glycerine as a distributor and gradually went up the value chain to offer its in-house finished product to a wide range of industries, including food and consumables, pharmaceuticals and medical, paints and pigments, and more. The crude glycerine obtained from its facilities during the production of biodiesel is refined further to meet the needs of industries as Pharma Grade and Industrial Grade.
Striving For A Sustainable Future
In India, the transportation sector contributes about 20 percent of the country's yearly carbon emissions, which total around 2.3 Gt CO2e annually. AR Energy Group has contributed over 40 million litres of B100 (biodiesel) since the inception in 2018, directly benefiting the reduction of CO2e, alongside consistently expanding the consumer base with the firm promoting the environmentally conducive alternate fuel to reduce the greenhouse gases to the range of 20-30 percent in the coming years, through adaptation by the global manufacturing organizations in India".
The firm has worked with businesses and is looking for additional partners to help create more sustainable production environments by shifting away from conventional crudebased fuels, both gaseous and liquid. As international oil prices trade at seven-year highs, India's crude oil import bill is expected to exceed $100 billion in the current fiscal year, nearly double its spending last year. Perfectly understanding the scenario, AR Energy Group will continue to contribute to the Atma Nirbhar Bharat, reducing marginally the import of raw material expenses that are continuing to influence our economy and growth, in order to support the Indian government's initiative of self-reliance and energy security.
The availability of Feed stock and the Cost of production Are the two Most important Factors driving The sustainable And commercial Production and Use of biodiesel in India
AR Energy Group has collaborated with Global Manufacturing Houses operating in India supplying them B100 for their utilities as well collection of used cooking oil from the kitchens established in canteen area. We are looking forward to expand this association with other manufacturing conglomerates as well contributing to their green environmental initiative and their healthy employee workforce.
Abdul Rahamon, concludes, "The availability of feed stock and the cost of production are the two most important factors driving the sustainable and commercial production and use of biodiesel in India. For the development of second generation and other advanced bio-based diesel alternate fuels using domestic feed stocks, a major focus on technology is required, will see the contribution towards Aviation Fuels as well.
"AR Energy's core Business practices include Consistency, purity, and Quality, along with an Exceptional automated Process, segregated Storage, high volume, And nationwide footprint, Through sustainable Feed stock"
The effective and complete execution of India's biodiesel blending program will require a collaborative effort from all participating parties. Users' and purchasers' understanding of the genuinity of products available on the market as biofuel has been a pressing need of the hour, and as an industry leader, we are working with entities and channels to transmit this knowledge and point them in the right direction for a more sustainable future".
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