Pakistan recently planted the jatropha plant in desert regions throughout the country in order to later harvest the fields for biodiesel, a method of biodiesel production that India is already currently utilising. The Pakistani government said it would hope that this would help offset a percentage of the $3 billion dollars already spent on importing diesel.

Neighboring India currently produces almost two thirds of the world’s jatropha plants.  The jatropha seeds can be used to produce up to 40% oil, which is about 60-70 U.S. gallons per acre of plants.  Researches predict that jatropha could yield ten times more oil than corn, but that it is has not yet been tested to full potential.

Jatropha is an economically way to produce biodiesel because it does not require additional processing once harvested.  Additionally it can be used for biomass to power industry and byproducts can be used as fertilizer.

 Jatropha is potentially a smart investment has it requires little water to survive, growing in arid, harsh deserts around the world.  However research did find the jatropha yields the most oil when it is adequately hydrated with enough water, which could be more water than it required by corn, another alternative to diesel.

 Based in India, the private research lab provides over eight years of research and development of biofuels and bioenergy using only non-edible feedstock. 

EBT’s groundbreaking jatropha-related technology was valued between 80 to 100 Million dollars in a private valuation by Ernst and Young in mid 2008. 

Terms of the LOI and Definitive Agreement are subject to normal due diligence from both companies with details to be released in the near future.

 Through our acquisition of interest in EBT, FutureWorld energy’s long-term plan is to put in production thousands of hectares of jatropha plantations in India, Southern Africa, Asia, Central and South America for cultivation and production of Bio-Crude oil (which could then be refined to Biodiesel, Jet fuel and other bio-related oils and fuels) to supply the anticipated global demand for biodiesel (only) of around 12.5 billion liters a year from 2010-11.

 There is substantial global shortage of bio-Crude oil from non-edible feedstock. 

There are approximately 170 biodiesel plants in production in the United States alone and thousands globally, and there exists an incredible opportunity to penetrate this market aggressively seeking new biodiesel production capacity. 

When it comes to alternatives to oil, research now shows that jatropha oil hold the greatest short and long-term promise among all other options available. 

“We are extremely optimistic and excited to have the opportunity to enter into this LOI with EBT and negotiate the acquisition on behalf of our FutureWorld Renewable Energy Portfolio. 

“When we successfully complete this purchase, we believe the development and release of this exciting new technology could allow FutureWorld Energy to become a leading producer, distributor, and manufacturer of bio-crude oil stock globally, as well as providing a major solution to help end our country’s dependency on foreign oil,” stated Sam Talari for FutureWorld Energy.”

Renewable energy company Jatoil (ASX code: JAT) has signed a key Memorandum of Understanding (MOU) with a leading European-backed jatropha biofuel producer, PT Waterland International.

The MOU outlines a potential transaction that would involve Jatoil buying a controlling interest in 1000-2000 hectares of established jatropha farming ventures in central Java, with plans for considerable expansion and short-term revenue generation. Jatoil will now undertake a formal due diligence process in relation to the potential transaction and will keep the market informed of its progress.

JatOil Chief Executive Officer Phil Hodgson said of the MOU, “Jatoil has been carefully looking to use its cash reserves to buy into world-class, sustainable energy projects that can meet stringent financial hurdles and provide sustainable returns to investors.”

Hodgson said, “If our due diligence on the Asian [deal] goes well, we expect completion of the deal during the next couple of months.”

PT Waterland is a Dutch-Indonesian consortium that has developed extensive jatropha operations in central Java to supply European power markets. It has 12,000 hectares of oil producing farms and a further 60,000 hectares that have been planted during the past 1-2 years.

JatOil Business Model

JatOil’s business model is based around becoming producers of Jatropha oil, and subsequently biodiesel, through partnerships with Jatropha growers in Asia and selling the final product to Europe, America and Asia.

The company would aim to supply rising international demand for biofuels by growing and selling low-cost biodiesel feedstock overseas. Jatropha oil – is derived from a low-cost, high-yielding, fast-growing, plant of the same name.

Importantly, the plant is also non-edible, unlike other biofuel sources such as soya bean, so it does not compete with human food, the company said.

The first deal for JatOil is an agreement with GreenEnergy Biofuels (GEB) to produce biofuel feedstock in Vietnam. This expanded Jatoil’s capacity and presence in the production of renewable energy from the hardy perennial tree, Jatropha curcas.

If completed, the Waterland venture would give Jatoil another important production centre in Asia to add to the existing Vietnamese joint venture operations. The biofuel operation in Vietnam is currently being expanded, with contracts being signed with farmer co-operatives. Nurseries have been established to provide seedlings for the planting of the expansion area in the southern province of Ninh Thuan, which will occur from August to December 2009.

Jatoil continues to review its opportunities in the Philippines with the appointment of a field operations manager, Ger Groeneveld. The studies being conducted by Mr Groeneveld have a strong slant on power generation using jatropha seedcake and other available biomass sources.

The Joint Venture Agreement has a 25 Year CBFMA Contract and an indefinite extension since it was appropriated in an Ancestral Domain Land Management for the Manobo Indigenous Communities. 

The Manobo Indigenous Communities has the Ancestral Domain Rights to the land and their Community Cooperative was for purposes of Agricultural and Forest Management to improve their living standard. 

The Joint Venture Technical Management and Operating Contract for the 36,103 acres will allow financial assistance and technical management to be provided by Preachers Coffee, Inc. and Modern Energy Corp. 

Rubber trees for forest management, in addition to Coffee and Jatropha plants, are being prepared for planting in the agricultural areas. 

The Jatropha plant is valued as a very cost effective feedstock for the production of oil used for producing Bio-Diesel. 

But unlike other biodiesel crops, Jatropha can be grown almost anywhere — from arid land to more fertile farms like in the Phillipines. 

It doesn’t need much water or fertilizer, although the yield rises as more water is available, like in Mindanao, Phillipines. 

And because the Jatropha is not edible, environmentalists and policy makers don’t have to worry about whether Jatropha diverts resources away from crops that could be used to feed people. 

By some estimates, the per-barrel cost to produce Biofuel using Jatropha — about $43 — is about half that of corn and roughly one-third that of rapeseed, two other leading materials for alternative energy. 

At those prices, Jatropha Biodiesel would be competitive with fuel made from crude oil without significant government subsidies. 

Recently, an airline had a test flight using a 50 jet fuel/50jatropha Biofuel mix. 

When Jatropha seeds are crushed, the resulting Jatropha oil can be processed to produce a high-quality biodiesel that can be used in a standard diesel car, while the residue, called “press cake,” can also be processed and used as biomass feedstock to power electricity plants or used as fertilizer (it contains nitrogen, phosphorous and potassium). 

A significant differentiator of Jatropha versus other Bio-Fuel Feedstocks is that Jatropha absorbs carbon-dioxide while they are growing, effectively canceling out the carbon dioxide they release when they burn. 

The plant may yield more than four times as much fuel per hectare of soybean, and more than ten times that of corn. 

A hectare of Jatropha has been claimed to produce 1,892 litrers of fuel.

Once the Jatropha seeds are dried out and crushed, these poisonous seeds yield oil which can be burned in almost any diesel engine — with no modification. Recent studies show that Jatropha seed produces between 30 and 40 percent of its mass in oil. 

Nestor C. Buenaflor, Chairman and CEO of Preachers Coffee, Inc. (PINKSHEETS: PRCF) and its subsidiary (PINKSHEETS: PCIO), said that, “This Joint Venture Agreement with Modern Energy Corp. will provide an improvement for the Manobo Tribal Communities on Mindanao, Philippines.

 ”And the positive contribution represented by the cultivation of Jatropha plants introduced as one of the cash crops for the production of Bio-Diesel offers a stable and sustainable future for our companies and the Manobo Tribal Communities.

“We are not only cleaning the air because of responsible forest management and Bio-Diesel from Jatropha, but we also improve the lives of poor people in the remote areas of the world by providing them with job opportunities and income.” 

Chairman of Modern Energy, John Winnick, stated, “The Preachers Coffee, Inc. joint venture with 36,103 acres of prime agricultural land in the Philippines is just one example of the Global Vision of Green Energy from the Jatropha plant and cash crops such as coffee and rubber trees for rubber, to further expand Modern Energy’s footprint to the nearly 1,000,000 acres that our company currently controls through our subsidiary, Sultan Saud Resource Development Corporation (SSRDC). 

“Modern Energy is pursuing a change in business plan to focus on providing Bio-Diesel feedstock for the Asian Pacific Basin and developing the region’s economies from a Third World nation to a world class provider of alternative clean energy. 

“This green energy initiative will provide jobs and opportunity for growth on Mindanao, the eighth largest island population on earth, and showcase the best of environmental capitalism.”

Eco-Energy, initiated as an idea in 2007 by Nur Yasin, Ermias Gizahun and Robel Debebe, started selling shares in April this year in the United States, United Arab Emirates, Yemen, India and Germany. The company picked the Indian consultancy, Jatropha World, which has a track record of involvement in jatropha, the prime plant in the production of bio-energy. This firm was selected, without bid, based on its experiences according to Robel Debebe, managing director of the company under formation
 

Jatropha World has prroposed 57,000 dollars for consultancy services. Eco-Energy requested a 10pc cut of the amount for compliting the three phases of the project with in five yeaers.The three phases include getting started with the plantations and exporting jatropha and castor oil seeds; producing the oils locally for the export purpose, and in the third phase, offering the products for the local market.
 

Within the time given, Jatropha World is expected to offer pre-plantation, plantation and post plantation consultancy services.
 

According to Eco-Energy, it started selling shares abroad to the Ethiopian Diaspora, not only because that group was its primary target but also because the local market was already engaged by other share selling companies such as Habesha Cement S.C. and Buna International Bank S.C. Robel said they engaged the local market starting early August 2009.
 

The company may face challenges in the local market according to Alemayehu Geda, Economics professor at the Addis Abeba University. He continues on to reveal that the public here knows the banks, cement factories and sugar factories very well.
 

“Selling equity to the public in the bio-fuel sector will be difficult because of the public’s lack of familiarity with the eco-energy industry and the insecurity of financial market as well as the legal framework in the country,” Alemayehu averred. “The initiators credibility and their educational status as well as experience matters.”
 

The government seeks to draw investment in the sector by promoting the availability of 23 million hectares of land for bio-fuel development. According to available literature 1,000Kg of jatropha could be produced on a hectare of land in arid areas with less than 200mm average rainfall. Five thousand to 30,000kg of palm seed could be produced from one hectare of land in areas with 2,000mm or more rainfall.
 

Eco-Energy S.C. plans to start operation on 25,000hct in the Oromia and Southern regional states. It, particularly, has its eyes on west and east Wollega, Bale, Gamo Gofa, South Omo and Dawuro.
 

The company preferred to verify the suitability of the identified places before using the land issue in their promotion, Nur Yasin, one of the founders of the company, said. He affirmed that they have already completed the market feasibility study for their work.

Eco-Energy plans to raise one billion Br from the sale of shares, worth 1,000 Br each. They are selling a minimum of 25 shares per individual. Nur says that so far they have sold to 30 individuals and companies including Awash Bank and Wegagen Bank.

Southwest Terminal LLC, a subsidiary of Pacific Texas Corp., has applied for a $140 million federal stimulus contract to build what’s touted as the first full-scale production facility to generate clean fuels from the undomesticated jatropha plant, which produces oil-rich seeds that are crushed and processed to make biodiesel.

If Southwest Terminal does not receive the federal contract, PTC President Mike Owens said private investors will fund the massive facility, which is expected to create 900 full-time jobs during its two-year construction and 115 permanent positions for Southwest Terminals.

The multiphase project is expected to be expanded to other states and create thousands of jobs over its lifetime.

Indian Railways and Emami Ltd, manufacturers of personnel care products, are looking at Karnataka to meet their bio-diesel requirements, Karnataka State Biofuel Task Force chairman Y B Ramakrishna said in Mysore.

Speaking to the press after visiting the R&D facilities of Labland, which has been working on Jatropha since 2001 and has applied for five patents, he said, apart from the Indian Railways and Emami, the Karnataka State Road Transport Corporation (KSRTC) would expand bio-diesel coverage to all its 18,000 fleet of buses by next year. Proceeding on a pioneering and aggressive path in using bio-diesel, KSRTC has been using ethanol blended bio-fuel since 2002 and was presently using it in 5,500 buses at 7.7 per cent blend. Continuing its aggressive path, the “role model corporation of the country” would switch over its entire fleet of 18,000 buses to bio-diesel and add to its savings the carbon credit earnings also. Its savings would be around Rs 22 crore including the carbon credit earnings.

Indian Railways, the biggest consumer of diesel in the world, proposed three bio-diesel plants of capacity 20,000 litres a day at three centres, for blending diesel with biofuel. It was looking at Karnataka, apart from Gujarat, where entrepreneurs could set up the biofuel plants with financial backing from the Railways. Some entrepreneurs had evinced interest and said money was not the issue for them but needed assurance that the Railways would lift all the 20,000 litres of biodiesel produced in their plants.

“The Task Force, therefore, is arranging a dialogue between the Railways and the entrepreneurs by the end of this month,” Ramakrishna said adding that the first plant may be set up at Yelahanka and should become operational by the middle of next year.

Setting itself on a big expansion mode, Emami was looking at Karnataka and Tamil Nadu for Rs 300 crore investment. Aiming at 1,500 litres of edible and 300 litres of bio-diesel oil per day, partially with imported seeds, they were looking for lands near an airport, he said and added, “We are positive of convincing them on locating their unit in the state. Karnataka had done pioneering work in bio-fuels since 1994-85 and was already producing enough quantities of bio-fuel seeds, 4.75 lakh tonnes per year. The emphasis was not on just Jatropha but included multiple crops and the Task Force was exploring short gestation crops. The “Hasiru Honnu” (green gold) project targetted a lakh hectares in three years and so far 6,400 hectares had been covered. A meeting of the district heads on September 24 was convened to aggressively pursue the project, the Chairman said, lauding the work done at Labland.

 Analysis

 Jatropha plant has got a huge potential in biofuel and biodiesel production. India is far more ahead than Pakistan in respect of jatropha plantation. Worldwide, manty scientists and researchers have started to unearth the potential hidden in Camelina, Jatropha, Mustard and some other oil crops for biodiesel and biofuel production. The jatropha plant (known more commonly in English as physic nut) is abundant, if overlooked. Like so many of the world’s plants, jatropha thrives in the biologically diverse climates of Africa, southern North America and some part of the carribean.  From its original location Central America—the Mexican farmer’s backyard—and the Caribbean islands, seafaring Europeans soon began propagating jatropha along their routes.

Sergio Goveia, manager of Sun Biofuels, said that the company had planted 1,000 hectares of jatropha since 2006, which is a fifth of the total it has in the area, at an investment of US$4.5 million, which also made it possible to launch food crops.

The Sun Biofuels factory expects to produce just over 20,000 litres of biofuel per year based on production at Gondola before expanding the project to Machaze where it plans to open up a 2,000 hectare jatropha plantation.

Once the project is operating fully the company expects to produce jatropha on 7,000 hectares of land in the two districts of Manica province: Gondola and Machaze. (macauhub)

Last month, GRYE Board unanimously approved the cultivation and germination of soybean as another source for biodiesel oil; had added the cultivation of this Genetically Modified (GM) Soybean that can supply 5 thousand kilos per hectare. 

GreenGold is absolutely committed to the cultivation of these other sustainable alternative biodiesel by intercropping with its current Jatropha Demo Farms plantations. 

Biodiesel made from this vegetable oil is also a sustainable and cleaner alternative fuel that has strong global environmental benefits. 

Biodiesel is among the most powerful bio fuel helping fight carbon emission, chipping away the largest contributor of greenhouse gas emissions-fossil fuels and has a 78% life cycle carbon reduction according to the U.S. Departments of Agriculture and Energy and the National Biodiesel Board.

World soybean production has increased by over 500% in the last 40 years, will continue to grow on strong demand for animal feed, especially in China where the rapidly increasing standard of living allows the average consumer to eat more meat than ever before.