India's first biodiesel plant starts production

Naturol Bioenergy, owner of the first biodiesel plant in India, has started producing biodiesel in Kakinada, in the state of Andhra Pradesh.

The facility is expected to produce 30 million gallons of biodiesel a year using Belgian technology and jatropha as a feedstock. Feedstock is imported from Malaysia, Indonesia and Africa.

The company has long term agreements with petroleum intermediaries to export biodiesel to the US and EU states.

Naturol has invested Rs 140 crore (€25 million), 40% of which is financed by equity from venture capital investors, with the remainder from term loans from banks and financial institutions. Naturol has also injected funds to create the required infrastructure to scale up by five times.