There are various sources of producing bio-diesels. However, the first bio-ethanol fuels are neither cost competitive nor do they significantly reduce greenhouse gas emissions. The first generation bio-ethanol fuels also require the use of food ropes such as sugarcane, corn, soyabean etc.

These sources of manufacturing bio diesels threatened largely the food supply and they also could not be produced in sufficient quantities because food security cannot be compromise with bio-diesel. But now it seems a chemical-company in England has developed a method to produce ethanol in large quantities from municipal solid waste, organic commercial waste, and agricultural residues.

The waste is first superheated to produce gases and then fed to naturally occurring bacteria that efficiently produce ethanol which is purified to make the fuel ready to be blended for use in cars. It has been calculated that one tonne of dried waste can yield around 400 litters of bioethanol. It has been also claimed that this type of ethanol produces 90% less net greenhouse gas emission than petrol.

This bio-diesel technique of extracting ethanol from municipal solid waste, organic commercial waste and agricultural residues have great futuristic importance for India. Because India has vast resource of solid waste. India has vast urban population, agricultural activities that can be used for the production of bio-diesel.

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This technology can serve two purpose in the country, first it will produce biodiesel from waste material of no worth and secondly environmental problems in the forms of various pollutions i.e. air, water, land can be reduced to a great extent This could also be a cheap source of energy.