JT Biofuels: What is Jatropha?

June 6, 2011 - PRLog -- For many years farmers didn’t care about it, a drought-resistant inedible wild green shrub which grows almost anywhere, even on gravelly or sandy soils. It was mostly used as a hedge to keep livestock contained. But the seeds from jatropha’s fruit have been found to contain a liquid, which can be made into biodiesel and sold as a renewable energy. Back in 2007, Goldman Sachs cited jatropha as one of the best candidates for future biodiesel production, and since then it has soared from strength to strength. The market price is linked to Brent oil. For example, if Brent oil is trading at US$80 per barrel, jatropha will be trading at over US$700 per metric tonne.

Each jatropha seed contains approximately 25%-35% crude jatropha oil, which under further processing can be transformed into commercial biodiesel. On average 1 hectare of jatropha trees produces in excess of 2 metric tonnes of crude jatropha oil; this is among the highest of all tree-borne oil seeds. Jatropha’s potential to help halt the effects of climate change are vast, reducing 66-68% of the greenhouse gas emissions compared with fossil diesel (EcoFYS, GHG Performance of Jatropha Biodiesel, June 2008).

Most biofuels are the subject of a number of concerns. Vital agricultural land is often being used for growing fuel rather than food, restricting the amount of land use and crops which can feed a growing population. But not jatropha. Because jatropha is inedible, it is not diverting food crops. And because it grows almost anywhere, even on land unsuitable for food crops, it is not osetting any agricultural land.

Institutional investors and countries are recognising the potential of jatropha. India has put huge efforts into cultivation, setting aside 100 million hectares, expecting the oil to account for 20% of its diesel consumption by 2011 (Time Magazine, 2009). But the country considered a potential jatropha superpower is Indonesia, which is incorporating jatropha into its biofuels plan. With a perfect climate, the government plans to have 1.5 million hectares under cultivation by the end of 2010 (Carbon Positive, 2008).

JT Biofuels now offers the opportunity to enjoy returns from this green energy boom, through investing in Jatropha.