USTDA GRANT SUPPORTS STUDY OF CLEAN ENERGY PROJECT IN INDIA

NEW DELHI, INDIA (September 29, 2004) – On September 27, 2004, the U.S. Trade and Development Agency (USTDA) awarded a $70,000 grant to Bhoruka Power Corporation, Ltd. to partially fund a feasibility study on a biodiesel technology project in India.  Mr. John E. Peters, Counselor for Commercial Affairs at the U.S. Embassy in New Delhi, signed an agreement conferring the grant on behalf of the U.S. Government.  Mr. Chandrashekhar, Managing Director, signed on behalf of Bhoruka Power.

Currently, the majority of commercial vehicles in India run on petroleum diesel fuel, a significant source of air pollution in India.  As a result of the priority that the Government of India has placed on reducing air pollution, and the country’s interest in increasing its energy self-sufficiency, Bhoruka Power is interested in producing biodiesel fuel.  Biodiesel is a nontoxic, biodegradable alternative to petroleum diesel that substantially reduces the quantity and toxicity of diesel engine exhaust.  Biodiesel can also be used as a fuel source in power generation.   

Biodiesel Industries, Inc., a small U.S. company based in Santa Barbara, California, has developed a technology for producing biodiesel using small modular plants called modular production units (MPUs).  Bhoruka Power has expressed interest in this technology and has identified a rural village near Bangalore, India as a suitable location for a pilot biodiesel production facility and rural electrification project.

The USTDA grant will fund a study analyzing the technical, economic and financial feasibility of utilizing Biodiesel Industry’s MPUs for this pilot project.  The study will also examine plans to replicate the pilot project in other rural villages and to produce biodiesel as an alternative transportation fuel in India.

The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries.  The agency funds various forms of technical assistance, feasibility studies, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment.  USTDA’s strategic use of foreign assistance funds to support sound investment policy and decision-making in host countries creates an enabling environment for trade, investment and sustainable economic development.  In carrying out its mission, USTDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services.

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