| Oil giant BP wants biodiesel made
from sustainable non-food feedstock. A joint venture with biodiesel producer
D1 Oils will invest $160 million over five years developing Jatropha –
an oilseed bearing tree that can grow on poor agricultural land.
Increasing demand for transportation fuels, dwindling OPEC spare capacity
and concern over current biofuel feedstocks competing with food production
is pressuring the industry to find alternatives.
Phil New, head of BP Biofuels, said: “Jatropha can be grown on land
of lesser agricultural value with lower irrigation requirements than many
plants, so it’s an excellent biodiesel feedstock. D1 Oils has identified
the most productive varieties of Jatropha, which can substantially increase
oil production per hectare.”
The prices of feedstocks such as corn, sugar, soya beans, wheat and palm
oil are increasing. This could limit the economic viability and growth
of the biofuel industry unless alternative feedstocks are found.
Jatropha is an evergreen tree that produces inedible oil seeds. It grows
in tropical and sub-tropical climates but does not thrive in rainforest
environments. BP said its advantages over soya beans and rape seed are
that it can grow on land unsuitable for arable crops, its yield potential
is higher and fertilizer and irrigation requirements are lower.
The joint venture will cultivate 10,000 sq km of Jatropha in South Africa,
South East Asia and Central and South America. The first crop is expected
in 2008. The oil will be used to meet biodiesel demand both locally and
in Europe.
BP believes European biodiesel production from rapeseed and waste oils
is unlikely to meet the 2010 legislative requirements for renewable content
in road transport fuels. The EU commission regards biofuels as essential
to meeting the 2012 objective of 120g/km CO2 vehicle fleet average.
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