GS-III: State-Run Oil Marketing Companies to Buy Biodiesel Made From Used Cooking Oil

Context:

The government has launched a ‘Repurpose Used Cooking Oil (RUCO)’ sticker and a phone app to enable the collection of used cooking oil. Restaurants and hotels interested in supplying used cooking oil can affix the sticker to show availability.

What is RUCO initiative?

The Food Safety and Standards Authority of India (FSSAI) had launched RUCO (Repurpose Used Cooking Oil), an initiative that will enable collection and conversion of used cooking oil to bio-diesel.

Under this initiative, 64 companies at 101 locations have been identified to enable collection of used cooking oil.

FSSAI wants businesses using more than 100 litres of oil for frying, to maintain a stock register and ensure that UCO is handed over to only registered collecting agencies.

Significance of the initiative:

FSSAI believes India has the potential to recover 220 crore litres of used cooking oil for the production of biodiesel by 2022 through a co-ordinated action. While biodiesel produced from used cooking oil is currently very small, but a robust ecosystem for conversion and collection is rapidly growing in India and will soon reach a sizable scale.

Background:

The initiative was launched after the food safety regulator notified standards for used cooking oil. According to FSSAI regulations, the maximum permissible limits for Total Polar Compounds (TPC) have been set at 25%, beyond which the cooking oil is unsafe for consumption.

What are Total Polar Compounds (TPC)?

• In many countries, TPC is used to measure the quality of oil. The level of TPC increases every time oil is re-heated. Some of the studies show that TPC accumulation in oil without food is slower than that in oil frying with food.
• Higher level of TPC in cooking oil leads to health issues like hypertension, atherosclerosis, Alzheimer’s disease and liver disease. One of the studies also noticed high levels of glucose, creatinine and cholesterol with declined levels of protein and albumin in cooking oil.

Significance of the initiative:

Currently, used cooking oil is either not discarded or disposed of in such a manner that it chokes drains and sewerage systems. Apart from setting quality standards, the new regulation addresses the way this oil is discarded. As used cooking oil is considered the most reasonable feedstock for biodiesel production, the FSSAI is planning to redirect the used cooking oil from the food business operators. It has already started collecting used oil in small quantities either through a barter arrangement or at cost.

National Policy on biofuels- salient features:

Categorization:The Policy categorises biofuels as “Basic Biofuels” viz. First Generation (1G) bioethanol & biodiesel and “Advanced Biofuels” – Second Generation (2G) ethanol, Municipal Solid Waste (MSW) to drop-in fuels, Third Generation (3G) biofuels, bio-CNG etc. to enable extension of appropriate financial and fiscal incentives under each category.

Scope of raw materials: The Policy expands the scope of raw material for ethanol production by allowing use of Sugarcane Juice, Sugar containing materials like Sugar Beet, Sweet Sorghum, Starch containing materials like Corn, Cassava, Damaged food grains like wheat, broken rice, Rotten Potatoes, unfit for human consumption for ethanol production.

Protection to farmers: Farmers are at a risk of not getting appropriate price for their produce during the surplus production phase. Taking this into account, the Policy allows use of surplus food grains for production of ethanol for blending with petrol with the approval of National Biofuel Coordination Committee.

Viability gap funding: With a thrust on Advanced Biofuels, the Policy indicates a viability gap funding scheme for 2G ethanol Bio refineries of Rs.5000 crore in 6 years in addition to additional tax incentives, higher purchase price as compared to 1G biofuels.

Boost to biodiesel production: The Policy encourages setting up of supply chain mechanisms for biodiesel production from non-edible oilseeds, Used Cooking Oil, short gestation crops.