mahua

BIODIESEL

business

plan

About Mahua (Madhuca longifolia)

The two major species of genus Madhuca found in India are Madhuca Indica (syn. Bassia latifolia) and Madhuca longifolia (syn.Brassica longifolia). Mahua is the widely accepted as local name for the fat from both these species. M. Latijolia is a deciduous tree while M.Congijolia is ever green or semi ever green tree. Attains height up to 70 ft. The tree matures and starts bearing 4-8  years, and fruits up to 60 years. The two species are not differentiated in Trade. The kernels are 70% of seed by weight, are seed contains two kernels, having 2.5 cm x 1.75 cm size oil content in latifolia is 46% and 52% in longifolia. In seeds oil content is +36% and protein in 16%.

Mahua as a source of biodiesel 

The Mahua biodiesel meets all the three criteria any environmentally sustainable fuel must meet. These are social, technical and commercial. The tree has a potential of enhancing rural income. Being an evergreen variety, it reaches a height of 45-60 feet, and is well adapted to varied weather conditions. With its wide spreading branches and circular crown the tree presents a visually appealing structure. Seed yield ranges from 20-200 kg per tree every year, depending on its growth and development. Being hardy and pest resistant, the tree requires little attention once it has taken root. As a plantation tree, mahua is an important plant having vital socio-economic value. This species can be planted on roadside, canal banks etc on commercial scale and in social forestry programmes, particularly in tribal areas. The drying and decertification yield 70% kernel on the weight of seed. The kernel of seed contains about 50% oil. The oil yield in an expeller is nearly 34-37. The properties of the Mahua Oil were found to be within the biodiesel limits of various countries. Hence the Mahua Oil can be used as a substitute for diesel, for sustainable development of rural areas and as a renewable fuel. The trees will act as sinks for carbon dioxide and, hence, the M.Indica plantation will reduce the amount of this greenhouse gas (GHG) in the atmosphere. The project has many other positive economic, social and environmental impacts: There are income generation opportunities that result from the project like the provision of goods and services to the plantation and its workers.

Mahua Research & Development

The productive plantation of Mahua needs to be scientifically managed for better growth and production. The growth and yield of the plant could be improved through effective management practices. The enhanced cultivation technology and improved inputs developed by CJP may provide about 4-6000 liters of fuels without displacing food crop and without utilizing prime food land in terms of sustainable farming techniques

Enhanced cultivation Technology

CJP’s Researchers have developed standardized techniques for growing Mahua on large scale. CJP ensures Organic Mahua plantation right from the land preparation, crop management to production of end product. However, we keep a close watch on the research results of Mahua breeding by studying thousands of Mahua variants, identifying and collecting the best sources of high-quality to guarantee a consistently high yield, a stem, or scion, from a tree with a demonstrated capacity to produce many pods/seeds. The enhanced Mahua Cultivation techniques may ensure proper and profitable production of THE OIL CROP providing early fruition and flowering—

Food v Fuel & Mahua

The surface required to grow sufficient feedstock for today’s biobased fuel production is less than 0.008% of the global agricultural area of 5 billion hectares. In a world of fast-growing population with an increasing demand for food and feed, the use of feedstock for non-food purposes is often debated controversially. The Study Report “Non Food Biodiesel – Enhanced Economics & better break-even” published by Biodiesel Business Academy (BBA) has given the debate a factual turn. In a world of fast-growing population with an increasing demand for food and feed, the use of feedstock for non-food purposes is often debated controversially. Dilemma of diverting crops and farmland that once produced food for family and for feed for animals, is now being produced for biofuels is not right and just to take the debate away and make it unnecessary we at CJP are promoting nonfood oil crops on the no use land- land that is not otherwise suitable for farming of foods.

ILUC discussion and Mahua

Many studies have shown there is enough land available to produce more food, more feed and more biofuels. Though the discussion of indirect land use change (ILUC) caused by biofuels is not scientifically supported, the Mahua does not causes land use change. Contrary to it Mahua is targeted for marginal lands which are unproductive, often because of degradation as used for reforestation in the dry, saline wasteland. Biodiesel can make a large contribution to the world’s future energy requirements; this is a resource we cannot ignore. The challenge is to harness it on an environmentally and economically manner and without compromising food security.

Economics: Cost & benefit ratio

By using non-food Mahua tree for biodiesel production and then utilizing the waste for further oil extraction. Using current proven sate of art agronomy, enhanced cultivator and technologies developed by CJP, the biodiesel from Mahua would be economically viable. The Mahua Biodiesel can be produced less than US$ <50 per barrel, see detailed economics below

Mahua has attracted attention as pressure mounts to find sustainable alternative fuels to help meet countries' renewable energy targets and cut greenhouse gas emissions, without interfering with agricultural production. Researchers at CJP  has honor to establish this untapped resource as alternative source for Bio- Diesel industry of future as Mahua is a strong candidate to contribute significant amounts of biofuel feedstock.

Therefore the Mahua trees must be regarded as a sure source of 2nd Generation Biodiesel and the foundation around which a profitable Business plan can be built for its ability to provide large amount of oil and its pure hardiness and stress handling ability. The Mahua is tree that has enough credentials:  a higher recovery and quality of oil than other crops, no direct competition with food crops as it is a non-edible source of fuel, and no direct competition with existing farmland as it can be grown on degraded and marginal land. Based on our proprietary knowledge and extensive experience gained we have developed Based on our proprietary knowledge and extensive experience gained we have developed and enhanced a wide range of Products for creating a “FALESAFE FUEL FARM”

MAHUA BIODIESEL BUSINESS PLAN: CJP’s Professional Business Plan Service

A feasibility study and a business plan are essential steps in developing a successful biodiesel business. However it is not easy to prepare an excellent business plan.

With its extensive experiences in the field, enhanced technology, plant science & professional knowledge,  effective consulting service and business intelligence CJP  can clearly understand the business model, products and services, production, marketing and provides all aspects of feasibility analysis and business development including assessments of the following: crop production, crushing, co-product markets, feedstock acquisition and contracting, technology analysis, risk analysis specific to biodiesel technology, feedstock, markets, and general project risks, market and  financial analysis.

We make the integration of our experience and professional knowledge with your information.  We provide in depth analysis of crop cultivation and crop care part of plan for which we have team of agronomist and plant scientists, and then we have engineers and experts in biodiesel industries to finish the technology and production part of business plan.  We have professionals in accounting to complete financial and economics part. CJP can offer the type of consulting that only numerous years of leadership in the biodiesel market can provide at an affordable price.

 CJP can help clients identify the needs, opportunities and solutions of their local, regional and national markets. By identifying these needs and providing management direction, CJP can help in creating a perfect business plan in order to develop and manage an effective and successful biodiesel facility. The most critical component of any business plan is the pro forma, an educated view or projection of what the performance of a company is capable of, given a specific set of assumptions and conditions. CJP has been involved in identifying these needs for specific projects for a number of years and can help develop a realistic and obtainable:

ü  Income Statement

ü  Balance Sheet

ü  Capital Budget

ü  Cash Flow

ü  Break-even Analysis

ü  Sensitivity Analysis

ü  Assumptions Governing the Projections

These projections will be valuable in determining feasibility of the project, securing financing, attracting investment and guiding management so that the company can reach its full potential.

We provide readymade Mahua Biodiesel Bbusiness plan for a size of 20 hectare and 100 hectare. You can order here

For 1000 ha and more we offer to formulate and provide a complete customized comprehensive Mahua  Biodiesel business plan from farming to fuel. For this RFP may be sent here or mail to us