chemcel biotech limited

245 Pages·2008·1.01 MB·English

Prospectus
Dated : August 29, 2008
CHEMCEL BIOTECH LIMITED
(Our Company was originally incorporated as “Chemcel Products Limited” on September 29, 1995 under the Companies Act, 1956 in the
State of Andhra Pradesh, India. The name of our Company was changed to Chemcel Bio-Tech Limited w.e.f. January 4, 2001)
Registered Office: 16-130/12, JRD Tata Industrial Estate, Auto Nagar, Kanuru, Vijayawada - 520007. The registered office of our Company was
shifted from Plot No. E-32, 100 Feet Road, Auto Nagar, Vijayawada - 520007 to the present address mentioned above w.e.f. February 17, 1998.
Tel: [phone]. Fax:+91-0866 - 2545437; Email: [email protected]; Website: www.chemcelbiotechltd.com
Contact Person: Mr. Shaik Rahmatullah - Company Secretary & Compliance Officer; E-mail: [email protected]
ISSUE OF 1,54,00,000 EQUITY SHARES OF Rs. 10/- EACH AT A PRICE OF Rs.16/- PER EQUITY SHARE (INCLUDING A PREMIUM OF
Rs.6/- PER EQUITY SHARE) OF CHEMCEL BIOTECH LIMITED (HEREINAFTER REFERRED TO AS THE “COMPANY” OR “ISSUER”)
FOR CASH AGGREGATING TO Rs.2464 LAKHS (“ISSUE”). THE ISSUE COMPRISES OF CONTRIBUTION BY PROMOTERS OF
16,00,000 EQUITY SHARES OF Rs. 10/- EACH AT A PRICE OF Rs.16/- PER EQUITY SHARE FOR CASH AGGREGATING TO Rs.256
LAKHS (“PROMOTER’S CONTRIBUTION PORTION”), 10,00,000 EQUITY SHARES OF Rs.10/- EACH RESERVED FOR ELIGIBLE
EMPLOYEES OF THE ISSUER COMPANY ON COMPETITIVE BASIS AT A PRICE OF Rs.16/- AGGREGATING TO Rs.160 LAKHS
(HEREINAFTER REFERRED TO AS EMPLOYEE RESERVATION PORTION ) AND THE NET ISSUE TO THE PUBLIC OF 1,28,00,000
EQUITY SHARES OF Rs. 10/- EACH AT A PRICE OF Rs.16/- PER EQUITY SHARE FOR CASH AGGREGATING TO Rs.2048 LAKHS
(“NET ISSUE TO PUBLIC”) THE NET ISSUE TO THE PUBLIC WOULD CONSTITUTE 49.39% OF THE FULLY DILUTED POST ISSUE
PAID UP CAPITAL OF OUR COMPANY.
ISSUE PRICE : Rs.16 PER EQUITY SHARE OF FACE VALUE OF Rs.10/- EACH
THE ISSUE PRICE IS 1.6 TIMES OF THE FACE VALUE OF EQUITY SHARE
RISKS IN RELATION TO THE FIRST ISSUE
This being the first issue of the Equity Shares of Chemcel Biotech Limited (“our Company”), there has been no formal market for the Equity
Shares of our Company. The Face value of the Equity Shares is Rs.10/- per share and the issue price is 1.6 times of the face value. The
Issue price (as has been determined and justified by the Lead Merchant Banker and the issuer Company as stated under “Basis for Issue
Price” on page no.40 of the Offer Document) should not be taken to be indicative of the market price of the Equity Shares after the Equity
Shares are listed. No assurance can be given regarding active or sustained trading in the shares of Chemcel Biotech Limited or regarding
the price at which the Equity Shares will be traded after listing.
GENERAL RISK
Investments in equity and equity related securities involve a degree of risk and investors should not invest any funds in this Issue unless they
can afford to take the risk of losing their investment. Investors are advised to read the risk factors carefully before taking an investment
decision in this Issue. For taking an investment decision, investors must rely on their own examination of our Company and the Issue
including the risks involved. The Equity Shares offered in the Issue have not been recommended or approved by the Securities and
Exchange Board of India (SEBI), nor does SEBI guarantee the accuracy or adequacy of this Prospectus. Specific attention of the investors
is invited to the section titled ‘Risk Factors’ beginning on page no. xii of this Prospectus.
ISSUER’S ABSOLUTE RESPONSIBILITY
Our Company, having made all reasonable inquiries, accepts responsibility for and confirms that this Prospectus contains all information
with regard to our Company and the Issue, which is material in the context of the Issue, that the information contained in this Prospectus is
true and correct in all material aspects and is not misleading in any material respect, that the opinions and intentions expressed herein are
honestly held and that there are no other facts, the omission of which makes this Prospectus as a whole or any of such information or the
expression of any such opinions or intentions misleading in any material respect.
LISTING
The Equity Shares offered through this Prospectus are proposed to be listed on Bombay Stock Exchange Limited (BSE) (Designated Stock
Exchange) The in-principle approval of BSE for the listing of our Equity Shares has been received vide its letter no.DCS/IPO/SI/IPO-IP/
1823/2007 dated February 8, 2008.
IPO GRADING
This Issue has been graded by ICRA Ltd and has been assigned the “IPO Grade 1” indicating poor fundamentals, vide its letter ref: ICRA/
CBL/2008-09/2006 dated June 25, 2008 and revalidated for a period of 6 months vide its letter dated ICRA/CBL/2008-09/2208 dated
August 22, 2008. For further details please refer to page no. 15 of this Prospectus.
LEAD MANAGER TO THE ISSUE REGISTRAR TO THE ISSUE
AllBank Finance Ltd B Bigshare Services Private Limited,
S
(Wholly owned Subsidiary of Allahabad Bank) SEBI Regn.no.INR000001385
S
SEBI Regn.no.INM00006609 E-2, Ansa Industrial Estate,
Allahabad Bank Building 2nd floor Sakivihar Road,Saki Naka,
37 Mumbai Samachar Marg Andheri East,
Mumbai - 400 023. Mumbai - 400 072.
Tel : +91 - 22 - 22677552 / 22626283 Tel: +91 - 22 - 40430200 / 28470652
Fax: +91 - 22 - 22677552 Fax: +91 - 22 - 2847 5207
Email: [email protected] Email: [email protected]
Website: www.allbankfinance.com Website: www.bigshareonline.com
Contact Person : Mr.K.Shiv Shankar/Ms. Padma Contact Person:Mr Ashok Shetty / Mr. N.V.K. Mohan
ISSUE SCHEDULE
ISSUE OPENS ON : TUESDAY, SEPTEMBER 09, 2008 ISSUE CLOSES ON : FRIDAY, SEPTEMBER 12, 2008
CHEMCEL BIOTECH LIMITED
TABLE OF CONTENTS
S. NO. PARTICULARS PAGE. NO.
I GENERAL i
DEFINITIONS, ABBREVIATIONS & TECHNICAL TERMS i
II RISK FACTORS x
1. CERTAIN CONVENTIONS; USE OF MARKET DATA x
2. FORWARD LOOKING STATEMENTS xi
3. RISK FACTORS xii
III INTRODUCTION 1
1. SUMMARY 1
2. THE ISSUE 7
3. SUMMARY OF FINANCIAL/OPERATING DATA 8
4. GENERAL INFORMATION 12
5. CAPITAL STRUCTURE 19
6. OBJECTS OF THE ISSUE 28
7. BASIC TERMS OF THE ISSUE 38
8. BASIS FOR ISSUE PRICE 40
9. STATEMENT OF TAX BENEFITS 43
IV ABOUT OUR COMPANY 47
1. INDUSTRY OVERVIEW 47
2. OUR BUSINESS 67
3. KEY INDUSTRY REGULATIONS AND POLICIES 85
4. HISTORY AND CERTAIN CORPORATE MATTERS 88
5. MANAGEMENT 92
6. PROMOTERS 102
7. CURRENCY OF PRESENTATION 104
8. RELATED PARTY TRANSACTIONS 105
9. DIVIDEND POLICY 106
V FINANCIAL INFORMATION OF OUR COMPANY 107
1. FINANCIAL STATEMENTS OF OUR COMPANY 107
2. FINANCIAL STATEMENTS OF OUR SUBSIDIARY 121
3. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION& RESULTS OF OPERATIONS 143
VI LEGAL AND OTHER INFORMATION 148
1. OUTSTANDING LITIGATIONS AND MATERIAL DEVELOPMENTS 148
2. GOVERNMENT APPROVALS/LICENSING ARRANGEMENTS 151
VII OTHER REGULATORY AND STATUTORY DISCLOSURES 155
VIII ISSUE RELATED INFORMATION 163
1. TERMS OF THE ISSUE 163
2. ISSUE STRUCTURE 166
3. ISSUE PROCEDURE 168
IX MAIN PROVISIONS OF THE ARTICLES OF ASSOCIATION 189
X MATERIAL CONTRACTS AND DOCUMENTS FOR INSPECTION 215
XI DECLARATION 217
CHEMCEL BIOTECH LIMITED
SECTION - I
DEFINITIONS, ABBREVATIONS & TECHNICAL TERMS
General terms
Term Description
Act The Companies Act ,1956
“Chemcel Biotech”, “Company”, Unless the context otherwise requires, refers to Chemcel
“CBL”, “Chemcel Biotech Ltd” Bio-Tech Limited, a company incorporated under the
Companies Act, 1956
FEMA Foreign Exchange Management Act, 1999, as amended, and
the rules and regulations framed thereunder.
HUF Hindu Undivided Family
NAV Net Asset Value
OCB/ Overseas Corporate Bodies Overseas Corporate Body means and includes an entity
defined in clause (xi) of Regulation 2 of the Foreign Exchange
Management (Withdrawal of General Permission to Overseas
Corporate Bodies (OCB’s) Regulations 2003 and which was
in existence on the date of the commencement of these
Regulations and immediately prior to such commencement
was eligible to undertake transactions pursuant to the general
permission granted under the Regulations. OCBs are not
allowed to invest in this Issue.
PAN Permanent Account Number
PAT Profit After Tax
RONW Return on Net worth
SCRR Securities Contracts (Regulations) Rules, 1957 as amended
SSI Small Scale Industry
SEBI Securities and Exchange Board of India constituted under the
SEBI Act
SEBI Act Securities and Exchange Board of India Act, 1992 as amended
SEBI (DIP )Guidelines SEBI (Disclosure and Investor Protection) Guidelines, 2000
issued by SEBI on January 27, 2000, as amended, including
instructions and clarifications issued by SEBI from time to
time
Issue related terms
Term Description
Allotment Unless the context otherwise requires, issue of equity shares
pursuant to this issue
Allottee The successful applicant to whom the Equity Shares are being
/ or have been issued or transferred
Applicant Any prospective investor who makes an application pursuant
to the terms of this Prospectus
Articles/Articles of Association/AoA Articles of Association of Chemcel Biotech Limited
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CHEMCEL BIOTECH LIMITED
Application Form The form in terms of which the Investors shall apply for equity
shares of our Company
Auditors The Statutory Auditors of our Company, Mr.T.Nehru, Chartered
Accountant, Vijayawada.
Bankers to the Issue Standard Chartered Bank, HDFC Bank Ltd , and Axis
Bank Limited
Board/Board of Directors The Board of Directors of Chemcel Biotech Limited or a
committee thereof
BSE Bombay Stock Exchange Limited , Mumbai
CDSL Central Depository Services (India) Limited
Co-Lead Manager Ashika Capital Limited, Mumbai.
Compliance Officer Mr. Shaik Rahmatullah, Company Secretary
Depositories Act Depositories Act, 1996 as amended
Depository A Depository registered with SEBI under the SEBI
(Depositories & Participant) Regulations, 1996 as amended
Depository Participant Depository Participant as defined under the Depositories Act
Designated Stock Exchange Bombay Stock Exchange Limited, Mumbai
Director(s) Director(s) of Chemcel Biotech Ltd unless otherwise specified
Eligible Employee Permanent employees of our Company who are Indian
nationals based in India as of August 29,2008 and are present
in India on the date of submission of the Application Form. A
director of our Company, whether a whole time director, except
any Promoters or members of the Promoter group, part- time
director or otherwise as of August 29,2008 and based and
present in India as on the date of submission of Application
Form.
Employee Reservation portion The portion of the issue being a maximum of 10,00,000 Equity
Shares available for allotment to eligible employees of our
Company on competitive basis.
Equity Shares Equity Shares of our Company face value of Rs.10/- each
unless otherwise specified in the context thereof
Equity Shareholders Persons holding equity shares of our Company unless
otherwise specified in the context thereof
First Applicant The applicant whose name appears first in the Application
Form
Foreign Institutional Investors Foreign Institutional Investor (as defined under FEMA
(Transfer or Offer of Security by a Person Resident outside
India) Regulations, 2000) registered with SEBI under
applicable laws in India
Financial year/FY Period of twelve months ended 31st March of that particular
year
GIR General Index Registry Number
GAAP Generally Accepted Accounting Practices
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CHEMCEL BIOTECH LIMITED
ICRA ICRA Limited, with its registered office located at 1105, Kailash
Building Eleventh Floor, 26,Kasturba Gandhi Marg, New Delhi
110 001, being the IPO grading agency appointed pursuant to
Clause 2.5A of the SEBI DIP Guidelines
Issue price The issue price of Rs 16 per equity share of face value of Rs
10 each at which Equity Shares will be issued and allotted in
terms of the Prospectus. The Issue Price has been decided
by the Company in consultation with the LeadManagers
Issue Size Issue of 1,54,00,000 equity shares of Rs. 10/- each at a price
of Rs.16/- per equity share (including a premium of Rs.6/-
per equity share) of Chemcel Biotech limited (hereinafter
referred to as “our Company” or “Issuer”) for cash aggregating
to Rs. 2464 Lakhs (“Issue”). The issue comprises a contribution
by Promoters, of 16,00,000 equity shares of Rs. 10/- each at
a price of Rs.16/- per equity share for cash aggregating to
Rs. 256 Lakhs (“Promoter’s Contribution Portion”), 10,00,000
equity shares of Rs. 10 each reserved for Eligible Employees
on competitive basis at a price of Rs. 16/- ( hereinafter
referred to as employee reservation portion ) and the net
issue to the public of 128,00,000 equity shares of Rs. 10/-
each at a price of Rs. 16/- per equity share for cash aggregating
to Rs.2048 Lakhs (“Net Issue to Public”) The Net Issue to the
Public would constitute 49.39% of the fully diluted post issue
paid up capital of our Company . The issue price is 1.6 times
of the face value of the equity share.
Issue Opening date The date on which the Issue opens for subscription
Issue closing date The date on which the Issue closes for subscription
Issue Period The period between the Issue opening & Issue closing date
and includes both these dates
Issuer Chemcel Biotech Limited
I T Act The Income Tax Act, 1961, as amended
Lead Manager Allbank Finance Limited , Mumbai
Memorandum/Memorandum of
Association/MOA The Memorandum of Association of Chemcel Biotech Ltd.
Net Issue to the Public The Issue less the Promoters Contribution and Employee
Reservation Portion
NRI/Non-Resident Indian Non-Resident Indian, is a person resident outside India, as
defined under FEMA and who is a citizen of India or a Person
of Indian Origin under FEMA (Transfer or Offer of Security by
a Person Resident Outside India) Regulations, 2000
NSDL National Securities Depository Limited
PAN Permanent Account Number
Prospectus Refers to this document, in terms of which the present Issue
of Equity Shares is proposed
Promoters Mr. Kanuparthi Balakrishna Rao, Mr. Kanuparthi Trinadha
Vijaya Kumar and Mr. Kanuparthi Chandra Shekar Prasad
QCD Quality Control Department
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CHEMCEL BIOTECH LIMITED
Qualified Institutional Buyers or QIBs Qualified Institutional Buyers: a. Public financial institution as
defined in section 4A of the Companies Act, 1956;b. Scheduled
Commercial banks;c. Mutual funds;d. Foreign Institutional
Investor registered with SEBI;e. Multilateral and Bilateral
development financial institutions;f. Venture Capital funds
registered with SEBI;g. Foreign Venture Capital investors
registered with SEBI;h. State Industrial Development
Corporations;i. Insurance Companies registered with the
Insurance Regulatory and Development Authority (IRDA);j.
Provident Funds with minimum corpus of Rs. 2500 lakhsk.
Pension Funds with minimum corpus of Rs. 2500 lakhsl.
National Investment Fund set up by Resolution F.NO. 2/3/
2005 DD 11 Dated Nov.23,2005
RBI Reserve Bank of India
Registered Office of our Company 16-130/12, JRD Tata Industrial Estate, 3rd Cross Road
Extension, Kanuru, Vijayawada 520007
Registrar/Registrar to the Issue Bigshare Services Pvt. Limited
RoC Registrar of Companies, Andhra Pradesh, 2nd Floor, Kendriya
Sadan, Sultan Bazar, Hyderabad 500195
Retail Applicants/Retail Individual Applicants Retail Individual Applicants (including HUFs) applying through
their karta) who have applied for Equity Shares for an amount
less than or equal to Rs.100,000 in any of the application in
the Issue.
Stock Exchange BSE
US GAAP Generally Accepted Accounting Practices of United States of
America
Company/Industry-related terms
Term Description
Agrochemicals Chemicals used in agriculture for combating pests
Bio-Diesel Oil extracted from the seeds
CIB Central Insecticide Board
Formulations Mixture of various chemicals as defined by the CIB
IEM Industrial Entrepreneur Memorandum
PCB Pollution Control Board
TPD Tons Per Day
Abbreviations
A/C Account
AGM Annual General Meeting
AS Accounting Standards as issued by the Institute of Chartered
Accountants of India
ALLBANK AllBank Finance Limited, Mumbai , Lead Manager to the issue
ASHIKA Ashika Capital Limited, Co-Lead Managers to the Issue
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CHEMCEL BIOTECH LIMITED
APSRTC Andhra Pradesh State Road Transport Corporation
AY Assessment Year
BIS Bureau of Indian Standards
BSE Bombay Stock Exchange Limited
BSS Bigshare Services Private Limited, Registrar to the Issue
BPCL Bharat Petroleum Corporation Limited
BPLR Bank Prime Lending Rate
CAGR Compounded Annual Growth Rate
CDSL Central Depository Services(India) Limited
CIN Company Identification Number
CSIR Council of Scientific & Industrial Research
CSMCRI Central Salt and Marine Chemicals Research Institute,
Bhavnagar
DBT Department of Biotechnology
DDT Dichloro-Diphenyl-Trichloroethane
DIN Director’s Identification Number
EBITD Earnings before interest, tax and depreciation
EC Emulsifiable Concentrate / European community /European
Commission
EGM Extra-ordinary General Meeting
EU European union
EPS Earnings Per Share
FIIs Foreign Institutional Investors registered with SEBI under
applicable laws
FY Financial year ended 31st March
GDP Gross Domestic Product
GIR Number General Index Registry Number
HDPE High Density Poly Ethylene
HPCL Hindustan Petroleum Corporation Limited
HSD High Speed Diesel
HUF Hindu Undivided Family
IIP Indian Institute of Petroleum , Dehradun
IITs Indian Institutes of Technology
IPO Initial Public Offering
IOC Indian Oil Corporation
INR/Rs. Indian Rupees
Mb/d Million Barrels per day
MMT Million Metric Tons
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CHEMCEL BIOTECH LIMITED
MMSCMD Million Metric Standard Cubic Meter Per Day
MOU Memorandum of Understanding
N.A Not applicable
NBB National Biodiesel Board
NBC National Biofuel Centre
NBRI National Botanical Research Institute
NGO Non- Government Organisation
NOVODB National Oilseeds and Vegetable Oils Development Board
NRE Account Non-Resident External Account
NRI Non-Resident Indian
NSDL National Securities Depository Ltd.
OECD Organization for Economic Co-operation and Development
PAN Permanent Account Number
PAT Profit After Tax
PBT Profit Before Tax
PBDIT Profit before Depreciation, Interest and Tax
PBIT Profit before Interest and Tax
PCRA Petroleum Conservation Research Association
P/E Ratio Price/Earnings Ratio
PRI Panchayati Raj Institutions
QIB Qualified Institutional Buyer
R&D Research and Development
RBI Reserve Bank of India
Sec Section
TBO Tree Borne Oilseeds
TNW Tangible net worth
TPD Tons per day
UNFCCC United Nations Framework Convention on Climate Change
USA United States of America
USAID US Agency for International Development
VAT Value Added Tax
WDP Water Dispersible Powder
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CHEMCEL BIOTECH LIMITED
Glossary used in Bio Diesel Industry
Algae Algae are primitive plants, usually aquatic, capable of
synthesising their own food by photosynthesis. Algae is
currently being investigated as a possible feedstock for
producing biodiesel
B100. B100 is another name for pure biodiesel
Biobutanol Biobutanol is an advantaged biofuel that offers a number of
benefits over conventional biofuels. For example, biobutanol
has an energy content closer to that of petroleum so
consumers face less of a compromise on fuel economy. It
can easily be added to conventional petrol due to low vapour
pressure and can be blended at higher concentrations than
bioethanol for use in standard vehicle engines. DuPont and
BP are working together on a major project to produce
biobutanol
Biodiesel Biodiesel is a biofuel produced from various feedstocks
including vegetable oils (such as oilseed
Biofuel The term biofuel applies to any solid
Biomass Biomass is biological material
Bioreactor A bioreactor is a vessel in which a chemical process occurs.
This usually involves organisms or biochemically active
substances derived from such organisms
BTL BTL, or biomass-to-liquid,is a multi-step process which
converts biomass into liquid biofuels. BTL is also referred to
as second generation biodiesel production. There are many
different methods of BTL, but many processes include
Fischer-Tropsch, hydrogenation or pyrolysis.
By-product A by-product is a substance, other than the principal product,
generated as a consequence of creating a biofuel. For
example, a by-product of biodiesel production is glycerine
and a by-product of bioethanol production is DDGS
Catalyst A catalyst is a substance that increases the rate of a chemical
reaction, without being consumed or produced by the reaction.
Enzymes are catalysts for many biochemical reactions.
Cetane number The cetane number is a measure of biodiesel’s combustion
quality
Conventional biofuels Conventional biofuels such as bioethanol and biodiesel are
typically made from corn, sugarcane and beet, wheat or oilseed
crops such as soy and rape.
Emissions : Emissions are classed as any waste substances released
into the air or water.
Enzyme : An enzyme is a protein or protein-based molecule that speeds
up chemical reactions occurring in living things. Enzymes act
as catalysts for a single reaction, converting a specific set of
reactants into specific products.
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CHEMCEL BIOTECH LIMITED
FAME FAME, or fatty acid methyl ester can be created by a catalysed
reaction between fatty acids and methanol. The molecules
in biodiesel are primarily FAMEs, usually obtained from
vegetable oils by transesterification.
Fatty acid: A fatty acid is a carboxylic acid (an acid with a -COOH group)
with long hydrocarbon side chains. Feedstocks are first
converted to fatty acids and then to biodiesel
Feedstock A feedstock is any biomass resource destined for conversion
to energy or biofuel. For example, corn is a feedstock for
ethanol production, soybean oil may be a feedstock
for biodiesel and cellulosic biomass has the potential to be a
significant feedstock source for biofuels.
Fischer-Tropsch Fischer-Tropsch is one method of producing biodiesel, from
natural gas or syngas from gasified coal or biomass
Fuel A fuel is described as any material with one type of energy
that can be converted to another usable energy.
Glycerine Glycerine is a liquid by-product of biodiesel production.
Glycerine is used in the manufacture of dynamite, cosmetics,
liquid soaps, inks, and lubricants.
GTL GTL, or gas to liquid, is a refinery process which converts
natural gas into longer-chain hydrocarbons. Gas can be
converted to liquid fuels via a direct conversion or using a
process such as Fischer-Tropsch.
Jatropha Jatropha is a non-edible evergreen shrub found in Asia, Africa
and the West Indies. Its seeds contain a high proportion of oil
which can be used for making biodiesel.
Methanol Methanol is an alcohol containing one carbon atom per
molecule, generally made from natural gas, with about half
the energy density of petroleum. Methanol is used as a
component in the transesterification of triglycerides to give
a form of biodiesel.
MTBE MTBE, or methyl tertiary-butyl ether, is created from methanol
and can increase octane and decrease the volatility of
petroleum. It is often used as a petroleum additive because it
raises the oxygen content of the fuel.
Nitrogen Oxides Nitrogen Oxides (NOx) are a product of photochemical
reactions of nitric oxide in ambient air, and are one type of
emission produces from fuels.
Palm oil Palm oil is a form of vegetable oil obtained from the fruit of
the oil palm tree. It is a widely used feedstock The palm oil
and palm kernel oil are composed of fatty acids, esterified
with glycerol just like any ordinary fat. Palm oil is a widely
used feedstock for traditional biodiesel production.
Petroleum Petroleum refers to any petroleum-based substance
comprising of a complex blend of hydrocarbons derived from
crude oil through the process of separation, conversion,
upgrading, and finishing, including motor fuel, jet oil, lubricants,
petroleum solvents, and used oil.
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