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Archive for the ‘Economics’ category

Jatropha’s Product Range gets Diversified..!

April 15th, 2011

We all know that there has been serious research on detoxification of Jatropha meal to yield nutrition rich cake for use as animal feed. The advent of simple inexpensive detoxification strategies has already boosted the market value of Jatropha value chain product.  The latest addition to Jatropha’s diversifying product rage, is bio based plastic / biopolymer.

Polyol esters are being produced from transesterification of Jatropha oil methyl ester (JOME) and trimethylolpropane (TMP) with an attractive conversion of over 90%. Not only could the Jatropha oil find applicability in biopolymer industry, but the high amounts of glycerol by product from Jatropha biodiesel is also increasingly being used to produce biopolymers. 1,3-propanediol is being produced from crude glycerol from Jatropha biodiesel process by Klebsiella pneumonia. The bio based 1,3-propanediol is further polymerized with terephthalic acid to yield poly trimethylene terephthalate (PTT).

The developments in biopolymer production could offer new hope and renewed interest for Jatropha entrepreneurs.  They are finding better ways to optimize cash flow and economics of Jatropha business..

More info

Polyester production from Jatropha

PDO and PTT production

“Jatropha can Deliver its High Potential as a Sustainable Biodiesel Feedstock” – BOEING

April 5th, 2011

“Sustainability..!”

Sustainability has become the most influential term in the world of Jatropha. More often than not, it has been causing headache to a Jatropha investor.

In a scenario where the whole of Africa and certain other regions of world has been echoing the fact that Jatropha is not sustainable, researchers at Yale University’s School of Environmental Studies have something different to say and to prove. The two year research funded by Boeing which used sustainability criteria developed by the Roundtable on Sustainable Biofuels to assess the Jatropha cultivation in Latin America, claims that Jatropha is indeed sustainable.

Life Cycle Assesment of Jatropha as a part of this study identified prior land use as the most important factor influencing the greenhouse gas benefits of a jatropha. This research highlights that developers should pay particular attention to prior land use when deciding where to locate jatropha projects. The study identified that failure of Jatropha projects was mainly due to lack of developed seed strains, which led to poor crop yields. Research on improving the seed quality holds the key for successful and sustainable Jatropha cultivation.

While all the previous studies that criticized Jatropha were mostly based on theoretical assumptions and inputs, this study was based on extensive interviews with Jatropha cultivators and scenario analysis of Jatropha projects. Hence it could be considered as the most comprehensive sustainability analysis made for Jatropha. The systematic study proves that the notions and conclusions from the theoretical studies of the past were all faulty. The study showed that, if cultivated properly, jatropha can deliver strong environmental and socioeconomic benefits.

The study has come as a savior for Jatropha which has been facing so much of controversies off late. It has provided invaluable to better understand the sustainability potential of Jatropha. The convincing results of the study should hopefully silence the critics

More info – Yale Universities Research Report

More info – Boeing’s Press Release

Jatropha Biodiesel Production Plant at Uttar Pradesh

March 22nd, 2011

A government funded plant for extraction of Jatropha oil and conversion to biodiesel is about to be established at Lucknow, India. The plant, funded by the department of science and technology, Government of India, will be the first government-funded bio-diesel plant in Uttar Pradesh.

The plant to be established, would train the small land holders and farmers to give them firsthand experience in biodiesel production.  Also, the facility could be used by farmers who do large scale Jatropha farming to extract diesel from the oil. The plant would hence function more as a demonstration unit than a full scale production unit. It would enable farmers to know the extraction and conversion process. The plant would be established at the Biotech Networking Facility Center, run by the state’s department of science and technology.

In a country such as India, where fragmentation of agricultural land is a widely observed pattern, there is a slow pace of development of biofuels due  to poor contribution from small land holders. Efforts such as these would help in looping in the small land holders to contribute to biofuel sector.

More info – http://www.indianexpress.com/news/plant-to-extract-oil-from-jatropha-for-biodiesel/764979/

Poor Jatropha Yield in Indian Plantations – D1 Oils faces Productivity Challenges

March 3rd, 2011

D1 Oils, which recently managed the hiccups over sale of biofuel site at Bromborough, has to now confront with the challenge of limited yield of Crude Jatropha oil from its Indian plantations.

D1 Oils has a joint venture with tea company Williamson-Magor, through which the Jatropha is being grown in north eastern India. Due to heavy monsoon last year during the time of harvest (November), the company was not in a position to extract any oil in the north east this season at the anticipated time. Also, heavy monsoon during June- July last year has resulted in depressed flowering and has also hindered the weeding works essential to maximise crop potential. The company anticipates a fall in production of about 2000 tons in the year 2011 due to these issues.

Adding to the problem of low yield is the lower market value of CJO at US$975 per ton, which was slightly lower than anticipated. This is mainly due to disparities between local and export sale prices as well as ‘spot purchases’ for trial work and repeat purchases from commercial customers.

D1 Oils is continuing to experience demand for greater quantities of crude Jatropha oil than it is able to supply and it has already sold all 500 tonnes of CJO produced over the past 6 months. With a continuous upward trend in global crude oil and vegetable oil (palm, soy, canola) prices, one can certainly expect an increase in the demand for crude Jatropha oil in days to come. A significant growth in collection volumes and harvest levels is essential to produce enough Jatropha oil to match the market demand.

 More info – D1 will release its operational results for the year to the end 2010 by the month of May 2011 at www.d1plc.com

Jatropha business- Strategies for Success

February 11th, 2011

Previous blog entries about the success strategies for Jatropha cultivation, focussed on how to incorporate intercropping and hybrid planting into business so as to generate income during early years. But for the Jatropha business to be sustainable in long run there is a need for solid planning even after the third year. This blog entry would discuss about a strategy for success the of Jatropha business on the whole and not from cultivation perspective alone.

The companies that have been the real benchmarks for those who wish to succeed in Jatropha business do not restrict themselves to business activities alone. In this very much competitive world, research has become an integral part of any business aimed at better growth and endurance. Successful Jatropha companies either invest a part of their reserves for research purpose or they established a strategic and long term partnership with a renowned Research and Development company.

The success of Jatropha entrepreneurs is positively influenced by R & D Partners who are usually agricultural technology enterprises with expertise in crop science, agronomy and cultivation technology. There are many R & D partners who are involved in development of high-yielding Jatropha plant hybrids, which give a superior yield and oil content. These R &D partners are known to develop patented planting material and hybrid seeds capable of producing up to 3 tons of biofuel per hectare per annum. R & D Partnership would certainly help Jatropha enterprenuers in growing high-yielding Jatropha biofuel feedstock on an industrial scale and at competitive cost to meet the ever increasing demand for sustainable, renewable non-food biofuel feedstocks.

In a long term strategic partnership with Jatropha entrepreneurs, the R & D partner controls aspects pertaining to:

- cultivation and processing,

- bioengineering strategies

- high-tech oil extraction and conversion technologies,

- commercialization of valuable by-products and the processing of Jatropha into high grade biodiesel

This business strategy might not sound much appealing at the first instance. But proof of concept is certainly in place. In the business domain, Jatropha entrepreneurs who had partnerships with R&D companies, definitely had an edge over others with respect to oil yield, fuel properties and commercialization of valuable by-products (biofertilizer, gasification products etc). The expenses incurred due to R & D partnerships have never turned out to be liabilities in Jatropha business. The role of an R &  D partner is immense in every step of the value chain, right from feasibility study to end product utilization.

Successful business strategy not only involves fool proof agricultural practises, but also involves strategic partnership with companies/ organizations who are known to positively influence the business. There are many such R&D partners world over, who could contribute to betterment of every step of the Jatropha biodiesel value chain. Individual consultants, research institutes, universities etc, offer a possibility of collaboration to strengthen the business by contributing their expertise in every step of the value chain.

Now, the question would be about the choice of collaboration.? Biozio has worked extensively on this subject and could provide you with comprehensive information about R&D partners, consultants, institutes involved in Jatropha research. The comprehensive jatropha report from Biozio would help you with valuable inputs, data’s and balanced opinion about the industry, based on the authentic information obtained after extensive study about the commercial and research efforts worldwide.

After Jatropha oil its coal that is fancied by Jatoil Ltd.

February 8th, 2011

Asia Pacific’s larges Jatropha biodiesel producer Jatoil Limited, after having established an energy trading division for Jatropha oil to form part of its core business, has recently announced its advancement plans to become a coal producer. Jatoil entered into a strategic relationship with a major Chinese investor, involving a share placement and co-investment agreement. This is part of the company’s ongoing plan to accelerate development of its jatropha biofuel operation in Indonesia and the purchase and development of coal assets in Kalimantan. Also the company has gone on to sign a binding letter of intent to acquire four coal exploration permits at central Queensland. The deal strengthens Jatoil’s dual energy strategy currently being initiated through the acquisition of Blackrock Resources Pty Ltd, which holds interests in two coal assets in Kalimantan, Indonesia.

With the positive responses from Australian investors towards Jatoils decision towards moving into coal, the company is taking this deal as an opportunity to make Jatoil even more relevant to local investors through the acquisition of valuable Australian coal tenements in the Galilee Basin, Queensland.

More info- http://www.jatoil.net/

Jatoil hits production milestone of 200 tons Jatropha oil

February 8th, 2011

Jatoil Limited the largest second generation biodiesel producer in the Asia Pacific region, announced that it has achieved production of 200 tons of crude jatropha oil. The 200 tons production milestone has come six month after Jatoil made its inaugural sale to an airline industry, from its Indonesian productions. Jatoil’s 70%-owned Central Java joint venture PT Jatoil Waterland, is consistently producing increased quantities of biodiesel.

The company also announced that it has established an energy trading division to form part of its core business as sales of crude jatropha oil soars high. With airlines striving to meet mandatory new European Union carbon dioxide emission regulations, biodiesel would be of very high demand in forth coming years

More info- http://www.jatoil.net/

Jatropha biodiesel price should be increased- Confederation of Indian Industry

February 5th, 2011

The Confederation of Indian Industry and the Ministry of New and Renewable Energy recently conducted a study to assess the Realistic Cost of Biodiesel in India. The study has determined that the price of jatropha-based biodiesel needs to be increased to create an economically sustainable biodiesel industry within the country

The study estimates was based on an assumption that the blending initiative of two per cent Jatropha based Biodiesel be achieved by year 2011-12, India. If such an intiative is achieved, our country is expected to save around Rs. 30 billion and will generate revenue of around Rs. 55 billion in the rural economy with an opportunity of investment to the extent of Rs. 17 billion on an annual basis. This initiative, if achieved would also help in reduction of Green House Gas emission by 3 Million Metric Tonnes (MMT) on an annual basis.

The investment in Jatropha business has not been fancied much because of the unattractive price the government has labeled over the Biofuel.  The present procurement price of Rs. 26.50/litre as per the Government declared Biodiesel Policy, if reviewed and corrected realistically, could possibly sustain the investment and required growth of the Biodiesel sectors. Record fluctuation in the oil market pricing in recent years has created a security threat to India’s crude oil imports and resulted in increased financial burden on the global economy. It has also created an opportunity for easier adaptation and integration of Biofuels in the energy portfolio. To counter and mitigate the security threat in diesel based economy like India, biodiesel may be used as a true supplement to fossil diesel with appropriate technological, financial and policy interventions. With the study results showing so much of revenue generation for the government upon blending biodiesel, it is essential for the policy makers of our government to rethink their strategy.

The study suggests that the Government should create a suitable policy framework (incentives, grants etc. and the distribution mechanism) to make this price of Biodiesel self-sustainable and have an average procurement price of Jatropha seeds at Rs 6,000/tonne to ensure no migration of food land for fuel crops and business viability for conversion of seeds to Biodiesel. This will create a pull for Biodiesel demand to accelerate the development of the industry. Biodiesel from Jatropha, generates a significant opportunity of employment, is a potential source of revenue for the farmers without giving rise to the “Food vs Fuel” debate. There are several countries in the World, which have successfully developed their Biofuels sector by suitably addressing and favourably developing successful and sustainable models for catalyzing its growth. Its very much possible for our country to learn from global trend and to bring about such a policy change, studies such as the one from CII would be good catalysts.

Jatropha acreage to be expanded by CSMCRI to support its million dollar deals

February 5th, 2011

The Central Salt and Marine Chemicals Research Institute (CSMCRI), known for its jatropha production at Indian circuit,  has proposed plans to expand its acreage to support the million dolor investments from business deals with The US Department of Energy(DoE) and General Motors India (GM)

CSMCRI has already supplied around 12,000 litres of biodiesel to General Motors India in the last two years for testing its cars on biodiesel. The US Department of Energy(DoE), GM and CSMCRI entered into a five year partnership to develop Jatropha as a sustainable crop. GM is investing close to $ 1million on the project that will demonstrate that jatropha, traditionally considered a weed, can produce significant quantities of oil for commercial scale conversion to biodiesel. Under the partnership two jatropha farms will be established, a 33 hectare plot in Bhavnagar and a 20 hectare plot in Kalol besides CSMCRI’s existing 30 hectare jatropha farm in Bhavnagar. In all, there will be 83 hectares of jatropha farm under the partnership. Another auto major Mahindra and Mahindra has also recently intensified its sourcing of biodiesel from the institute. The company has recently sourced around 3,000 litres of biodiesel from CSMCRI. Hence the company is looking to expand its acreage to boost up its production.

More info- http://www.csmcri.org/

Jatropha business initiatives from CSMCRI sounds appealing for rural India

February 5th, 2011

The Central Salt and Marine Chemicals Research Institute (CMCRI) is initiating talks with Amul, Gujarath to develop cooperatives comprising local farmers who would cultivate and harvest jatropha.  According to CMCRI, a family of four should be able to manage around five hectares of farmland to produce 3 tonnes of fruit per hectare. Around 500 litres of biodiesel could be produced per hectare provided each hectare produces 3 tonnes of fruit. Given that the production is around 3 tonnes of fruit per hectare and one gets around Rs 8000 per tonne for the fruit, a family could earn around Rs 24,000 a month from the field. Leaving aside the cost of irrigation, buying seeds and sundry cost, the return is roughly around Rs 5000-6000 per month per hectare for the family. These numbers would surely please the rural farmer and it can be hoped that a lot of such co-operatives would come into existence very soon to work with CMCRI..

CSMCRI is also working on developing an integrated mobile unit that will go around the villages collect the fruits, separate the shaft and seeds and also extract the oil from the seeds that will be then brought back to the factory for refining. The mobile unit would be nothing but a vehicle mounted with the machines that will process the fruit. The cost of a single such unit could be around Rs 30 lakh. CSMCRI has already initiated talks with the likes of Self Employed Women’s Association for assistance is developing the cooperatives and self help groups.

More info- http://www.csmcri.org/


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