Nepal can produce 100,000 litres bio-ethanol a day

Bio-ethanol production gains momentum after 2-decade hiatus

 

Kathmandu, Oct. 26

Production of bio-ethanol in Nepal has been a story of an unsuccessful project as talks prevailed for more than two decades while mechanisms to fix the price and sign the purchase agreement couldn't transpire.

Approximately, 21 years ago in November 2003, the Ministry of Industry, Commerce and Supplies (MoICS) decided for the mandatory mixing of bio-ethanol in petrol used as vehicle fuel from January 15 that year as an initiative for the application of environment-friendly fuel. The Nepal Oil Corporation (NOC) had installed a machine for mixing ethanol in petrol at its depot in Amlekhgunj which never come in use.

On December 15, 2003, the Government of Nepal (GoN) published the notice in the Gazette to implement the decision but even after 21 years, the government is yet to set the price to purchase it from the producers.

Meanwhile, the discussion of producing bio-ethanol centred mostly around the sugar mills while proposals to extract it from jatropha couldn't take off. The budget of Fiscal Year 2009/10 had announced to promote jatropha farming to produce bio-diesel as an alternative to imported petroleum fuel.

Likewise, the Rural Energy Policy 2006 included a provision to identify the potential locations to produce bio-fuel and develop them. The thirteenth plan of the country (2013/14-2015/16) also pledged to formulate necessary policy to produce bio-fuel in Nepal while the Policy and Programmes of the GoN for FY 2014/15 announced to launch a fresh initiative to find a way to mixing bio-ethanol in petroleum products. The policy of the following year mentioned to promote private sector companies for the same.

While there were initiatives from various institutions ranging from Nepal Academy of Science and Technology (NAST) to private companies in the past two decades to produce bio-fuel and bio-ethanol, sugar mills had repeatedly urged the government to facilitate them in producing bio-ethanol from molasses – a byproduct of the sugar mills.  

The country also formulated a Bio-Mass Energy Strategy 2017 that again announced to partially substitute diesel and petrol import with the use of bio-diesel and bio-ethanol, identify land to cultivate fuel crop and provide it to the entrepreneurs, and promote the production of bio-ethanol from molasses.

 

Procedures to mixing bio-ethanol soon

The GoN had announced, a decade ago, to buy bio-diesel and bio-ethanol produced in Nepal even if it's up to 10 per cent more expensive than the imported diesel and petrol and make necessary provisions for the same, provide financial concession, subsidy and concessional loans to the producers and refineries and conduct research and development work for the production, processing, quality control, and market promotion and expansion.

After several years of these milestones, Minister for Industry, Commerce and Supply, Damodar Bhandari, had announced on September 9 this year to set the price of bio-ethanol within a month.

According to the NOC, which has the responsibility to prepare the further strategy for the production and promotion of bio-ethanol and set the purchasing price of the product, the entire process is stuck at determining the price at which the NOC will buy it from the producers.

Nepal Sugar Mills Association (NSMA) has said that the mills are okay with the NOC's petrol purchasing price which is around Rs. 90 per litre. Minister Bhandari is also concerned about whether the price could be set in a way that would benefit all stakeholders – producers, NOC and consumers.

The issue was in oblivion for several years and was resurfaced after a committee to suggest the mixing of ethanol in petroleum products led by Dinanath Mishra, Director General of the Nepal Bureau of Standards and Metrology, and included officials from MoICS, Nepal Academy of Science and Technology, NOC, Alternative Energy Promotion Centre, and Kiaan Chemicals Industries (KCI) Pvt. Ltd., submitted its report to the government in April 2024.

Later on August 25 this year, Industry, Commerce, Labour and Consumer Welfare Committee of the Federal Parliament directed the government to advance the bio-ethanol production process, set the standards of the product, and sign purchase agreement from the producers in order to guarantee the market for them.

The House Panel also directed the GoN and MoICS to implement the suggestions offered by various committes formed in the past and facilitate the domestic producers in producing bio-ethanol.

 

Stakeholders are positive

After a week of the House Panel's decision, the MoICS had expressed its commitment to formulate a procedure for mixing ethanol in petrol and implement it within the next three months. According to Dr. Chandika Prasad Bhatta, Managing Director of the NOC, the draft of the bylaws for Mixing Ethanol in Petrol is at the final stage.

The NOC is currently moving ahead with the plan to mix up to 10 per cent ethanol in petroleum products which is possible, according to Pratibha Maharjan, Chief of Central Laboratory of the NOC.

India and China have enacted policies to mixing 15-30 per cent ethanol in petroleum products while United States of America has a policy to mix 10 per cent, Brazil 27 per cent, India 15 per cent and China 10 per cent. Maharjan said that India has subsidized the production and transportation of bio-ethanol so Nepal should also adopt special polity to promote the production of this environment-friendly fuel.

The NOC said the bio-ethanol that would be used in petroleum products should be of high quality – E-99 standards. Ethanol can also be produced from napier grass, corn husk, rice straw, corn, wheat chaff and bamboo.

The sugar mills said that they currently have the capacity to produce at least 50,000 litres of bio-ethanol from the molasses and the Kiaan Chemicals Industry is also ready to produce bio-ethanol of same quantity.

Director of KCI, Dinesh Poudyal, said that the company has conducted the feasibility studies to produce bio-ethanol from cassava and is ready to set up the plant immediately after getting purchasing guarantee from the NOC.

"We need a mechanism that would maintain the buy-back guarantee of the ethanol produced by the industry. However, it seems that the NOC is still working on it," he said. The government-formed committees have also suggested to implement Ethanol Purchase Agreement (EPA) after finalising the procurement parameters.

 

Committee’s suggestion

The Committee on making suggestions about mixing bio-ethanol in petroleum products had recommended that up to 10 per cent ethanol cold be mixed with petrol in Nepal and if the quantity of former is to be increased further studies are needed.

Ethanol should be bought from the domestic industries, and such enterprises should be accorded national priority and they should be provided with the facilities given to the alternative energy projects, read the recommendations.

"If the production of bio-ethanol goes above the set standards of mixing with petroleum products, the government should provide the facility to the industries to export it to the third countries," read the committee report.

It also said that concessions should also be provided to the farmers.

The committee noted that the production and mixing of bio-ethanol would have positive impact on environment,  industries, import substitution and farmers.

 

Commercial farming of cassava

Kiaan Agriculture Research and Development Pvt. Ltd., a company promoted by the Non-Resident Nepalis (NRNs), is set to produce bio-ethanol from cassava (simal tarul) and has formulated a plan to promote its cultivation and buy back from the farmers. 

Established about four years ago, the company has conducted numerous discussions and interactions with the officials of the Ministry of Industry, Commerce and Supplies (MoICS) and Nepal Oil Corporation (NOC).

Nepal has high potential in commercial cultivation of cassava while communities are collecting them from forests and farmers are growing them in a small scale. According to government and private sector studies, it can be cultivated in plains as well in the hills. There is no segregate data on cassava production in the country, the Ministry of Agriculture and Livestock Development (MoALD) estimates shows that the overall annual production of root and tuber crops is around 100,000 tonnes.

KARD has proposed to promote the commercial cultivation of cassava in 99,000 hectares, primarily in and around Parsa district, stating that it would sign buy-back agreement with the farmers. Commercial farming of cassava can promote the use of fallow land created due to migration, foreign employment and menace of wild animals like monkeys and wild boars. About 60,000 hectares of cultivable land has remained fallow across the country. A kilo of cassava is sold at up to Rs. 70 at the Kalimati vegetable market during winter festival of Makar Sankranti.

Director of KARD, Dinesh Poudyal, said that this cash crop can create employment in the villages and can motivate youth to stay at their own homes as the commercial farming of cassava can yield about Rs. 50,000 income in a month from one hectare. Globally, cassava is the third largest source of carbohydrate after rice and corn, and is widely used to produce alcohol, starch, glucose, and sabudana (tapioca pearl). Brazil, Nigeria, Thailand, India, China, Malaysia and other East Asian countries grow cassava.

According to Poudyal, in the first phase, cassava production is possible in 22,000 ha which will create employment opportunity for 71,000 farmers and indirect benefit 440,000 workers.

Published in The Rising Nepal daily on 27 October 2024.  

FM Paudel directs revenue officials to intensify efforts to meet targes

Kathmandu, Nov. 5

Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has directed the officials of revenue administration to intensify efforts in revenue collection.

Addressing a meeting with ministry secretaries and departmental chiefs at the Ministry of Finance at the Singha Durbar on Tuesday, Minister Paudel instructed them to go beyond average performance and ensure their teams are fully engaged in achieving revenue targets.

Stressing that standard efforts would yield only ordinary results, Minister Paudel emphasised that a 13 per cent increase in revenue mobilisation compared to the same period last year was not sufficient, Ministry of Finance (MoF) informed in a statement.

The government has set a target to collect Rs. 1419.30 billion revenue in the current Fiscal Year 2024/25 and has collected 19 per cent (Rs. 280.16 billion) of it in the first three and a half months, according to the data published by the Financial Comptroller General Office (FCGO). Last year, the government was able to rack up Rs. 247.41 billion (17.39 per cent) in the same period against the target of Rs. 1422.54 billion.

As mentioned in the budget of this FY, tax and non-tax revenue targets are set at Rs. 1284.20 billion and Rs. 135.09 billion respectively while grants target was set up at 52.32 billion.

By Monday, total revenue mobilisation by the government stood at Rs. 285.88 billion against the total expenditure from treasury at Rs. 382.51 billion, creating a gap of about Rs. 97 billion between the income and expenses of the government which means the government needs to raise funds from borrowing.

Meanwhile, the capital expenditure has remained just 9.24 per cent (Rs. 32.56 billion) against the total allocation of Rs. 352.35 billion. However, this is better than the performance of the last FY 2023/24 – Rs. 267.96 billion of the annual allocation Rs. 302.07 billion.

Amidst such a situation, DPM Paudel said that revenue collection should be carried out in accordance with the constitution as well as laws and in the nation's best interest, addressing taxpayers’ concerns in line with legal provisions, and urged officials to be proactive.

Minister Paudel further directed officials to take immediate measures to address emerging challenges in revenue collection and enhance coordination among security personnel and other inter-agency teams to curb revenue leakage. He said that any lapses in revenue collection should be met with prompt action against those responsible, the MoF said.

In support of these efforts, DPM Paudel assured leadership's commitment to implementing policy, structural, and procedural reforms to improve the revenue collection system.

The meeting was attended, among others, by Finance Secretary Dr. Ram Prasad Ghimire, Revenue Secretary Dinesh Kumar Ghimire, Chief of the Revenue Management Division Uttar Kumar Khatri, Directors General of the Department of Customs Hari Sharan Pudasaini, and DG of Inland Revenue Department Ram Prasad Acharya.

 Published in The Rising Nepal daily on 6 November 2024. 

Chandra Dhakal receives 'Caraka Buwana Award'

 Kathmandu, Nov. 5

President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Chandra Prasad Dhakal, who is also the honourary consul of Indonesia to Nepal, has received a prestigious 'Caraka Buwana Award' from the government of Indonesia.

The Caraka Buwana Award is a prestigious honour presented by the Ministry of Foreign Affairs of Indonesia which recognises individuals who have made significant contributions to strengthening bilateral relations with Indonesia, the Secretariat of Dhakal, informed in a statement on Tuesday.

This award recognises his significant contributions to enhancing bilateral relations between Nepal and Indonesia, especially in promoting tourism, cultural exchange, and economic ties between the two nations.

The award was presented by Heru H. Subolo, the Ambassador of Indonesia to Nepal on behalf of the government of Indonesia, during a special ceremony held in Kathmandu on Tuesday.

Ambassador Subolo commended President Dhakal, stating, “President Dhakal's unwavering commitment has significantly strengthened our nations' bond, fostering a collaborative spirit that benefits both countries.”

Dhakal said that this award serves as an inspiration to work towards a future of mutual growth and prosperity between Nepal and Indonesia.

He said that the two recent landmark agreements-- Bilateral Consultation Mechanism and the Visa Exemption Agreement for holders of diplomatic and official passports - signed on the sidelines of the 79th session of the UN General Assembly, are crucial for reinforcing the partnership between Nepal and Indonesia.

He called for the consideration of an on-arrival visa facility for Nepalese tourists to further strengthen cultural ties and tourism.

Dhakal has been serving as the honorary consul of the Republic of Indonesia to Nepal since 2010.

 Published in The Rising Nepal daily on 6 November 2024. 

Chiranjibi Adhikari appointed ICT member

Kathmandu, Oct. 30

Chiranjibi Adhikari, Secretary General of the CAN Federation, has been appointed as a member of the Information and Communication Technology (ICT) subcommittee under the Nepal Academy of Science and Technology (NAST). This appointment follows a decision from the 307th meeting of NAST's governing council, which restructured various subcommittees and included Adhikari on the ICT theme.

The subcommittee is chaired by Dr. Subarna Shakya, with other members including Dr. Manish Pokharel, Dr. Baburam Dawadi, Dr. Bhojraj Ghimire and Gunakeshari Pradhan. Pradeep Dhodari will serve as the member secretary.

NAST regularly forms subject-specific scientific subcommittees, with the ICT subcommittee recognised as an essential platform for significant decisions and advancements in technology. Upon his nomination, Adhikari expressed his commitment to leveraging his expertise to support technological progress in the country, the CAN Federation informed in a statement on Wednesday.

Adhikari is the immediate past president of the Centre for Cyber Security Research and Innovation and the current chair of the Information Security Response Team Nepal. He holds several international certifications in technology and has worked extensively on IT governance, cyber security, AI in cyber security, and information security management systems.

"He has consistently advocated for youth and start-up issues in the ICT sector and has actively contributed to policy development in information technology both institutionally and individually," said CAN. 

 Published in The Rising Nepal daily on 31 October 2024. 

Dr. Pun reappointed brand ambassador of NBL

Kathmandu, Oct. 30

Nepal Bank Limited (NBL), the country’s first bank, has renewed its brand ambassadorship with Dr. Mahabir Pun, Chairman of the National Innovation Centre.

Dr. Pun was initially appointed as the bank's brand ambassador in 2019, and the agreement has now been extended for another year.

On 12 Kartik 2081 (29 October 2024), a ceremony was held at Nepal Bank Limited’s head office in Kathmandu, where Chief Executive Officer of NBL, Tilak Raj Pandey and Dr. Pun signed the renewal agreement at a programme organised at the bank recently. Dr Pun expressed his pleasure at continuing his role with Nepal Bank, a historic institution with a proud legacy in Nepal’s banking sector, NBL said in a statement on Wednesday.

Likewise, CEO Pandey remarked that it is an honour to retain Dr. Pun, a distinguished personality and source of inspiration for all Nepalis, as the bank’s brand ambassador. He also expressed his appreciation for Dr. Pun’s continued association with Nepal Bank.

 Published in The Rising Nepal daily on 31 October 2024. 

Nepal earns Rs. 4.75 billion through carbon trading

Kathmandu, Oct. 29

The Alternative Energy Promotion Centre (AEPC) informed that Nepal has earned Rs. 4.75 billion (US$ 35.27 million) through carbon trading.

The income is made through eight different carbon trading projects operated by the AEPC since 2011 as the country reduced a total of 6 million tonnes of carbon emissions, its Executive Director of Nawaraj Dhakal said at the programme organised to celebrate the 28^th anniversary of the AEPC in the Capital on Tuesday.

The centre has earned US$ 2.87 million from carbon trading in the last Fiscal Year 2023/24.

According to Dhakal, about 6 million tonnes of carbon has been sold through the centre. Last year, it recorded the minimization of carbon emission by 542,000 tonnes.

Likewise, through the promotion of renewable energy technology, 542,866 metric tons of carbon emissions have been reduced and an income of US$ 28.05 million has been generated through carbon trading.

Dhakal mentioned that the amount of carbon trade will increase in the coming years as efforts and effectiveness of reducing carbon emissions are increasing.

"The key physical progress of the last year includes the installation of 1,312 KW mini/micro hydropower plants, 390 KW solar/wind minigrid plants, 8,306 solar home systems, deployment of 26,256 electric cookstoves and 4,508 metallic improved cookstoves," he said. Likewise, there was construction of 3.042 domestic biogas plants, 349 solar photovoltaic pumping schemes for drinking water and irrigation, and 311 institutional solar photovoltaic systems for powering remote healthcare facilities and community schools.

Addressing the anniversary programme, Minister for Energy, Water Resources and Irrigation, Dipak Khadka, said that the centre is playing an important role in Nepal's electrification and new laws are being drafted to further facilitate it so that it could meet the demands of changing time.

"The government has set a target of 100 per cent electrification within one year. In order to achieve this goal, a working group including the Ministry of Energy, Water Resources and Irrigation, Nepal Electricity Authority and AEPC has made a joint integrated action plan and started its implementation," he said.

Minister Khadka also mentioned that Nepal is trying to make carbon trade and electricity export the basis of prosperity. He informed that although there is an agreement with Bangladesh to export 40 megawatts of electricity, the government has made an action plan to export up to 8,000 megawatts. According to him, the Ministry has been trying to mobilise its subordinate bodies like the NEA and AEPC to achieve the set goals in the energy sector.

Likewise, Kushal Gurung, a member of the AEPC, pointed out the need to prioritise solar energy projects for Nepal's electricity development. He said that the solar energy project is becoming very effective in terms of technology and cost, and it is necessary to change the current share of the energy mix.

Gurung said that according to the energy mix policy, the goal is to achieve 10 per cent share of solar energy, but it is necessary to change it to 30 per cent. He suggested that while the reach of the national transmission of electricity is expanding, small hydroelectric power plants with millions of rupees of investment are facing problems and the government should repair them and create an environment to sell electricity to the NEA.

Meanwhile, through a close cooperation with the Green Climate Fund and local governments, the AEPC has initiated the implementation of the first GCF-funded project 'Mitigating greenhouse gas emissions through modern, efficient and climate-friendly clean cooking solutions.

This project aims to collaborate with local governments and private sector for accelerated deployment of clean cooking solutions and transform residential cooking sector by the installation of 500,000 electric cookstoves, 490,000 tier 3plus improved cookstoves and 10,000 biogas plants in 150 local levels of 22 districts in Tarai region of Nepal in five years period.

According to the AEPC, the project will benefit 1 million households.

Meanwhile, the AEPC has awarded Tara Khola Hydropwer Limited of Baglung district with the Suprabidh Memorial Renewable Energy Award in Small and Micro Hydropower Category. In Solar Energy Category, the award is given to Suryodaya Urja Pvt. Ltd. while in Biomass Energy Category, Jandadevi Nepal Urja Pvt. Ltd. and Dumkibas Poultry Farm Pvt. Ltd., Nawalparasi received the award.

 Published in The Rising Nepal daily on 30 October 2024. 

AHF calls for protection of lower-middle income countries

 Kathmandu, Oct. 28

The AIDS Healthcare Foundation (AHF) Nepal has called for the protection of the lower middle imcome countries in Asia and the world.

Emphasising Asia's critical role in advocating for equity in the World Health Organization's (WHO) Pandemic Agreement, the organisation has urged the decisionmakers to help reshape a framework that ensures all countries will be protected from future global public health crises, particularly lower-income countries in Asia and globally.

The AHF Nepal has been running advocacy as part of the global Save Our Society (SOS) campaign, said Dibya Raj Joshi, Country Programme Manager of the AHF Nepal.

The SOS campaign seeks to address the glaring inequities that have historically plagued global health responses, particularly during the COVID-19 pandemic.

"As the Pandemic Agreement negotiations near their final stages, AHF emphasizes that these talks cannot conclude successfully unless equity is made an integral and binding part of the agreement," the AHF Nepal said in a statement. The current proposal, favoring high-income countries and pharmaceutical companies, fails to adequately address the needs of low- and middle-income countries.

"The COVID-19 pandemic exposed deep vulnerabilities in global healthcare, partícularly across Asía, highlighting the need for more equitable and decentralized health systems. As discussions around the WHO Pandemic Agreement near their end, Asia must champion a framework that promotes technology transfer and decentralizes the production of vaccines and other lifesaving commodities," he said.

According to him, this strategic shift would safeguard underserved regions in the Global South and secure Asia's health and economic stability.

By advocating for equity and building regional pharmaceutical capabilities, Asian nations can ensure collective resilience in future pandemics. Now is the time for Asia to lead this global effort, ensuring a safer and healthier future for all, added Joshi.

According to the AHF Nepal, issues necessary to create global health equity in the WHO Agreement are facilitating regional production capacity, unrestricted technology transfer, long-term binding financial commitments from high-income countries to support pandemic preparedness, and effective participation of civil society.

There should be oncrete mechanisms to facilitate the local production of vaccines, diagnostics, and therapeutics in the Global South, said Radheshyam Shrestha, Programme Manager at the AHF Nepal.

This requires a binding roadmap for the transfer of knowledge, technology, and long-term sustainable financing, as mainted in tje agreement.

The pandemic fund should be of a long-term nature and it must support the lower middle-income countries in addressing emergencies, lessening damage and create preparedness plan, said Joshi.

He said that the fund should be allocated on the basis of the size of population.

AHF the largest global AIDS organization, currently provides medical care and/or services to more than 2 million clients in 48 countries worldwide. 

 Published in The Rising Nepal daily on 29 October 2024.