Dutch and Brazilian companies join forces to develop Jatropha plantations

Using Jatropha to produce sustainable biofuel and bioenergy that does not compete with the food chain

Rotterdam/Belo Horizonte 17 April 2008 - The Brazilian company Plant.a.Bio and the Dutch project developer and trading firm BioFuel Projects International B.V. (BFP International) have agreed on a Memorandum of Understanding outlining their cooperation to develop and manage commercial scale Jatropha plantations in Brazil. Both companies value Jatropha as an important source for bioenergy and biofuel that will not jeopardize food production as the shrubs can grow on marginal grounds in arid conditions where food crops cannot be cultivated. BFP International and Plant.a.Bio aim to develop plantations in the interior of Brazil in less developed regions providing labour and chances for new farmers on grounds that were long time considered to be unusable.

Plant.a.Bio and BFP International are both active in the fields of renewable sustainable energy whereas BFP International is a project development company that aims to deliver sustainable and renewable raw materials for biofuel and bioenergy production and Plant.a.Bio manages and develops Jatropha plantations and has vast knowledge of Jatropha cultivation.

Jatropha oil, that can be produced from the seeds in the Jatropha fruits, is an interesting vegetable oil and is expected to be a good substitute for rapeseed oil and soybean oil that is currently being used for biodiesel production. "It is however imperative to produce enough Jatropha oil to be able to replace these edible oils and that the cultivation of Jatropha is done on acreage that is not suitable for food production", according to Marc de Boer, director of BFP International. "If we use regular arable land for the production of the same Jatropha, we will still have the food versus fuel debate since the production of Jatropha will then directly take place at the cost of food crops.". According to both companies that is not an acceptable situation and therefore they look at areas that are currently unsuitable for any other crop and found these areas north to Minas Gerais in Brazil.

Brazil and the Netherlands recently signed an agreement confirming both nations intentions to work together on the development of biofuels. Brazil has the potential to produce vast amounts of raw materials for biofuels using land that does not interfere with food production and at favourable costs while The Netherlands sees itself as a potentially key transit point and conversion centre to transport and handle Brazilian raw materials and biofuels to the rest of the EU countries. In that respect the agreement could not have come at a better time.

An initial acreage of 5,000 ha will be developed as a pilot plantation to demonstrate the economic viability of Jatropha on poor soils and to validate its sustainability as an energy crop. The model plantation will also serve as a training ground and test area to further enhance the Jatropha cultivation in Brazil to reach optimal yields per hectare on marginal grounds, something that has not been tested before on a commercial scale. The companies will invite researchers from both The Netherlands and Brazil to join and monitor the results and improve operations with new insights on Jatropha. Despite the fact that numerous projects are being developed on Jatropha globally there is still little known how a commercial scale Jatropha plantation will perform.

"By learning about Jatropha and developing on the fly with an actual project and a commercial scale plantation we think we will be able to radically improve yields on poor soils, which will make Jatropha an ever more lucrative investment. Also looking at the Jatropha production on a global scale when we improve Jatropha and increase the yields on non-arable lands, the mounting production both by increased yields and expanded non food acreage of this new commodity in the global vegetable oil complex will have a positive impact on the supply side and may help to trim down prices of edible oils by recovering the supply and demand balance.”, explains Marc de Boer. “Next step is to find further investors to expand our ventures together with Plant.a.Bio in Brazil and perhaps further in South America.”.

"The biofuel revolution is changing the world of energy and Brazil has been a leader and innovator in this field. After the ethanol success, biodiesel is the new option to replace fossil fuels and Jatropha Curcas is the viable option to use as a basis for the fabrication of sustainable biodiesel.", comments Luciano Cardoso, director of Plant.a.Bio. In addition the residues from the Jatropha oil production can be reused as fertilizer and to generate electricity and bioenergy for the local communities.

Plant.a.Bio is a Brazilian company that supports biodiesel feedstock producers with services ranging from genetic research to plantation management. Plant.a.Bio is a partnership between Cazenave SA, a reputable agronomic company with more than 30 years of experience in management of large scale plantations and Phoneutria ltda., a research laboratory with the leading edge in genetics.

BFP International develops projects for the production of raw materials that can be used for the fabrication of next generation biofuels and bioenergy. Taking into consideration all aspects of true sustainable development. BFP International currently focuses on Jatropha plantations, algae oil, solid biomass and waste streams and is also reviewing opportunities for Camelina. The company has its head office in The Netherlands and is active in Indonesia, Africa, Eastern Europe and Brazil.