Further, VayuGrid has carefully validated the economies of scale of VayuSap through various independent government research and industry. Thus, the model is assured to achieve the profits without subsidies which is a first for the industry.
How can we advance and encourage the use of biofuels in developing nations like India?
Having come from the IT industry, the IT industry flourished in India when there was a strong educational base, a global and open marketplace to which India could quickly participate, and minimal protectionist barriers. Biofuels can similarly flourish when there is education to displace the mis-perceptions, an open and global marketplace to exchange biofuel commodities, and minimal protectionist barriers.
Tell us something about Elite Pongamia (VayuSap) and Pongamia biofuels. How is it different from normal Pongamia?
We look at this both from the technology and the business standpoint.
The agro-technology of VayuSap is based on 25 years of research by our chief scientist, Dr. MVR Prasad in India, Africa, and Central America. He developed elite varieties of Pongamia which have half the gestation period and four times the output as average Pongamia trees. The VayuSap trees will start yielding in year 3 and produce predictable high yield for over 60 years.
The business innovation around VayuSap improves the ability to scale the supply chain through a reduced risk model by linking the downstream demand to the upstream supply through demand agreements. This model de-risks the downstream energy needs by providing a known energy cost, and de-risks the plantation by assuring an uptake on the plantation produce.