This twin problem has a solution, which can tackle the problem of depleting resources of petroluem products as well as the pollution and environmental hazard caused by these products.

Biodiesel is a fuel of many promises - for the farmer, for the environment, and for countries wishing to trim their petroleum imports. When Rudolf Diesel first developed the engine that bears his name in 1895, he fully intended it to be able to run on sources other than petroleum, and later demonstrated the engine at the 1900 World Exhibition in Paris using peanut oil as fuel. Nevertheless, even today, the same petroleum-based fuel used in Diesel's day isthe fuel of choice.

The term biodiesel refers to ethyl or methyl esters of fatty acids. Although it is possible to run a diesel engine on pure vegetable oil, high viscosity of the oil creates problems in smooth functioning of the engine. Simple alkyl esters of vegetable oils can be synthesised by transesterifying triglyceride oils to methyl or ethyl esters. This process reduces the viscosity of the oil by a factor of eight, the molecular weight to one-third and increase the volatility.

Fundamental benefits: Presently the higher cost of production of biodiesel prohibits its use as an alternative for diesel. However, lower concentration blends of biodiesel with the traditional diesel offer a distinct advantage over the conventional fuel.

Neat or 100 per cent biodiesel is as biodegradable as sugar and less toxic than salt. In fact studies have shown that biodiesel degrades up to four times faster than petroleum diesel which is a major advantage in marine environment to maintain the pristine natureof the water bodies and eco-system.

In addition, biodiesel offers lower exhaust emissions than diesel fuel. With 10-20 per cent lower emissions of carbon monoxide (CO), particulate matter, and unburned hydrocarbons, biodiesel could be the ultimate "clean" fuel. Austrians and Germans are using biodiesel fuels for transportation and other equipment operated in environmentally sensitive areas, such as ski resorts, parks and resort lakes. Another startling advantage is biodiesel exhaust has a less offensive odor.

They by-product of biodiesel production is glycerol which itself has a good market potential. It is used in the pharmaceutical industry as an aid. Moreover, for a country like India, which has an agro-based economy, it will be a great boon if we can meet our needs of fuel from our fields. Biodiesel has been manufactured from a variety of vegetable oils like the linseed, soyabean, cotton, canola, rapeseed, mustard etc other fats like tallow, lard, poultry fat, and used frying oil.

Thus, it willdefinitely boost agricultural production and also give an incentive to the farmer to produce more. One study has shown that for each kilogram of biodiesel fuel from rapeseed burned consumed, and not producedl up to three kilograms of carbon dioxide during the life cycle of biodiesel fuel.

Economic considerations: In many parts of Europe, tax incentives for biodiesel allow rapeseed oil methyl esters to sell at the pump for about the same price as diesel fuel. Yet, to draw parallels, the practicality of use of biodiesel will have to be critically examined. For the pricing of biodiesel, one cost factor looms large and formidable. Roughly 75 per cent of the cost of biodiesel is the raw materials.

The single most important factor influencing the economic viability of biodiesel is seed yield. Other important factors include coproduct credits for high protein meal and glycerin, plus state's farm program benefits. Investment in plant and equipment, while extremely important in establishing biodieselproduction capabilities, is much less important than feedstock costs in the final net cost of biodiesel.

Thus, exploitation of low quality vegetable oil which has a pungent odour and is dark brown, and thus unsuitable for consumption, can be used for the production of biodiesel without greatly affecting the quality of the biodiesel.

Yet another option in reducing the cost of biodiesel is to forego the use of an edible oil seed for methyl ester production and look at the other fats and oils sources that have less competition, where biodiesel could reign as the primary consumer.

European countries like Austria, Belgium, The Czech Republic, Denmark, France, Germany, Hungary, Ireland, Italy, United Kingdom, each produce biodiesel in excess of 50,000 tons per annum on industrial scale. France is the largest producer of biodiesel largely due to total tax exemption on biodiesel production. The United States is also one of the front runners in the production of biodiesel with annual production exceeding 100,000tons. Japan is also actively developing facilities for biodiesel production.

Waste frying oil also can ease the pressure of cost of raw material in the production of biodiesel. With the twin thrust of cheaper feedstock and more production, the biodiesel industry could push prices down to where more diesel engine operators would use biodiesel.

The National Biodiesel Board (NBB) in America claims that more than 100 biodiesel demonstrations using thousand of vehicles have logged more than 10 million road miles with biodiesel blends. The NBB has forecast a potential market for neat biodiesel at upward of three million gallons.

The road ahead: The use of alternative fuel sources has now become an urgent need. Developing countries like India have to concentrate more on research in such technologies as they would save a great deal of foreign exchange, as well as protect the environment. The government should encourage the production of biodiesel by giving tax incentives as well as boosting research inthe field of oil seed crops.

Farmers who produce soyabeans and feed livestock, dairy, and/or poultry could very well benefit most from a small-scale, community-based, oilseed processing and transesterification plant.

This is true primarily because the farmer internalises transaction costs relative to the conventional marketing system by using both the high-protein meal and the methyl ester/biodiesel fuel on his or her farm. Thus, the farmer maintains ownership of the soyabeans and soyabean products, and is not a "price taker" in selling soyabeans and in purchasing high-protein meal.

The world over major research work is being carried out to improve the process for production of biodiesel. Introduction of biotechnology based processes like enzymatic catalysis for esterification can lead to an ultimate "clean" process.

For the present it can be made compulsory by the regulatory authorities to use biodiesel or other such eco-friendly fuel in park areas, lakes and environmentally sensitive places.

TheIndian industry must take a leaf out of the European industry and develop technologies and products, which have ecological relevance as well apart from economical one.