More Positive News from India: Kolkata Buses Run on Biodiesel Blend

Treehugger has this very interesting entry on Kolkata Trams running on a biodiesel blend in an attempt at reducing bus generated pollution in the city by about a third: http://www.treehugger.com/files/2009/02/calcutta-tramways-buses-make-switch-biodiesel-blend.php

Hat's off to the Indian Railways who also own the Kolkata Tramways Corporation for this feat. Indian Railways already use some quantities of biodiesel and I hope they go from strength to greater strength. Now, will other cities across the country please take note?

Now Some Very Good News from India

Regular visitors to my blog are accustomed, I think, to my often strong criticism of India - I find it shameful that my country, which produces some of the best engineers and doctors in the world, also produces the world's most miserable politicians and bureaucrats. Unfortunately, in a country that was long socialist (and still is, if the constitution is to be believed, though, of course, a lot of the constitution has been diluted and trashed by the politicians) you cannot get away from the government's involvement as far as large projects especially in the energy sector are concerned.

So it is with great happiness that I present this news to you: Bharat Petroleum, one of India's large petroleum companies, the Shapurji Pallonji group (who own a huge chunk of Tata, ACC etc) and some more partners are due to build several large refineries to make biodiesel from jatropha as a source in the state of Uttar Pradesh, India. The link to this news is at: http://www.greenteker.com/story/3/02/2009/bharat-petroleum-invest-2000-crores-bio-diesel

As you know, this is news that I will be monitoring. Yes, biodiesel is not clean in the sense that it still puts carbon into the air. But trucks, trains and diesel cars do need to run. I think that this is a good intermediate fix for India. And, it keeps money in India instead of sending it to the Gulf.

Congratulations, BP, Shapurji group and everyone involved in this project!

A Shining Example Set by Westchester County, New York

Today's New York Times has this excellent piece about an initiative by the authorities in Westchester County, New York, to collect used frying oil and process it into biodiesel: http://www.nytimes.com/2009/02/08/nyregion/westchester/08greasewe.html?partner=permalink&exprod=permalink Under normal circumstances, in the USA, restaurants have to pay to get rid of used cooking oil. Under this new system, the county collects it free and uses it to drive several of its vehicles.

While I always think of parrallels to SOuth Asia, in India, at least, the oil would go down the drain to happily pollute ground water. Unfortunately, that doesn't drive the soot-belching Indian buses or trucks. Maybe there is a lesson to be learned here - but is India ready to learn it? I have my doubts.

Green Businesses and the Possible Dangers of Investing in Them

Good friend Mohanakrishnan posted this analysis on his investments blog about a company that has plans to manufacture biodiesel in the Southern Indian city of Hyderabad: http://mohanakrishnanb.blogspot.com/2008/12/interesting-small-cap.html and raises some very interesting questions that highlight not only the possible benefits and risks of investing in green businesses, but also, by extension, of the difficulties that potential entrepreneurs in this area face. The company that he speaks about is planning to manufacture and supply Bio-diesel to a Bus Transport company. It also plans to make money by selling carbon credits for the whole business of growing Jatropha and collecting carbon offset payments from polluting industries elsewhere. While, on the surface, this seems like a good idea, how is a potential investor to evaluate the business concerned before putting their money into the concerned company's shares? And, conversely, how is a potential entrepreneur who has plans to do something similar, to raise money for his / her business? The questions are intriguing, and, if you ask me, worrying as well. On them depends the future of the green dconomy to use a heavily clicheed term. Any responses to this question would be most welcome.