Most of the world's biofuel feedstocks compete with resources that could also be used for food production. Jatropha is a second generation feedstock that can be grown economically, without irrigation, on land that is unsuitable for the cultivation of food crops alone. Jatropha can represent a valuable income source in developing countries, helping to increase energy security and improving the living standards of rural communities.
Jatoil's commitment to social and environmental sustainability is supported by its partnerships with local established companies to leverage networks and knowledge and by its relationships with farmer co-operatives. Jatoil also has forged partnerships with a number of experts to ensure the application of leading industry practices, and with non-government/aid organisations to ensure probity in our operations. Our projects in Indonesia and Vietnam are excellent examples of this collaboration.
Jatoil is also committed to developing economically sustainable businesses. All parties, from farmers and local communities to our shareholders, must benefit economically from our businesses, even in a low energy price environment. Only long term economic sustainability realises long term social and environmental benefits.
Jatropha has been used for centuries in South America, Africa and Asia for fencing, fuel and medicinal purposes. Humans and animals know how to safely live with and use the plant. Jatropha contains toxins, but so do most plants. Animals won’t eat jatropha because they know it causes stomach aches. Villagers are known to use the stem as a tooth brush, but humans can suffer a strong toxic reaction if four or more seeds are eaten.
Jatropha oil has been used for domestic energy needs such as cooking and lighting; as a source of household income and employment; to produce charcoal briquettes, bio fertiliser and medicines; and as a raw material for soap and cosmetics. It also has environmental benefits. It can protect crops or pasture lands when used as a fence, help control erosion, be used as a windbreak, combat desertification and is a source of organic compost.
Biodiesel displaces greenhouse intensive diesel produced from refined crude oil – a fossil fuel. The extent of the greenhouse benefits depend, however, on a range of factors including the prior use of the land upon which the feedstock is cultivated; any displacement activities; the use of inputs such as fertiliser and biodiesel chemicals; the use of agriculture and process machinery; and transportation and distribution.
Jatoil intends to generate saleable carbon credits from its projects as they reach an appropriate scale and after the details of a new United Nations clean development mechanism become known.
Jatoil is very strict in its choice of development locations. We do not invest in environmentally sensitive areas. The prior and current use of every hectare of land is assessed, and land that is forested, recently deforested or that is being used for food production is excluded. We are members of the Roundtable on Sustainable Biofuels, and adhere to its 12 principles covering social and environmental sustainability in all operations.
The success of our business partnerships with farming groups depends on delivering mutual benefits over the long-term. The communities that we work with in Vietnam are willingly involved in our projects because they offer investment, employment and income. We co-operate with a Dutch non-government organisation called SNV that has experience in this field and which is taking the interests of local farmers into account. SNV was extensively consulted, and has approved the farmer contracts that we employ in Vietnam. Our business partners and managers also have long-term relationships with farmers, their communities and governments.
No. Jatropha is inedible so it doesn’t compete directly with food supplies. Neither is it suitable as a fodder crop, which is why it is often used by farmers as a living fence. We ensure that our biofarms don’t compete for access to productive agricultural land because jatropha is a hardy plant that can be grown in poor soils, and survives low or inconsistent rainfall. Unlike many other biofuel feedstocks, it can generate commercially viable yields on land that isn’t suitable for much else. This is an important factor in gaining the support of local communities and government authorities.
Jatropha is not the perfect solution to the increasing world demand for alternative liquid fuels, but it is perhaps the best candidate for use in tropical regions of the world. Properly developed, it will not compete with land or water resources for food production. It is extremely hardy, and can survive long, dry periods in a wide range of soil conditions. Its seeds produce an oil that can be easily purified and used for direct power generation or conversion into biodiesel. The oil is also ideally suited for the production of jet fuel.
We are developing socially, economically and environmentally sustainable renewable energy projects in Asia. Our initial focus is on biofuel farms in Vietnam, where we are developing second generation, non-food feedstock from jatropha curcas trees. Projects in other parts of Asia are also being assessed, including a potential venture in The Philippines.
We raised capital from Australian investors, and we would like to develop biofuel projects in our home country. Government restrictions currently preclude domestic jatropha projects, but we are prepared to consider developing projects using other second generation feedstock sources if they are economically viable. We are gaining considerable expertise from our work in Asia, and we would like to apply that experience in Australia if the right opportunity arises. An opportunity that we are actively pursuing is the production of biojet fuel. We are in the early stages of forming a consortium of supply chain partners to develop the industry over the next decade.
There are a number of strong reasons. Firstly, governments and local communities are very supportive because we are partnering with local companies and working with small farmers through their co-operatives. Also, the climate and land that is available are suitable for jatropha production.
In Vietnam we are developing our first biofuel farm in Ninh Thuan province north-east of Ho Chi Minh City. We are also planting numerous trial plots of jatropha across various topographies in each province to prove the agronomy and demonstrate to local farmers the benefits of cultivating jatropha on land that is uneconomic or unsuitable for alternative crop production. We are also signing contracts with farmers who will grow the crop themselves, and we are on track to meet planting targets.
It is critical for Jatoil to create long-term relationships. This takes time, however the risks of not moving carefully are amply demonstrated by the many ventures that have failed due to insufficient consideration given to social, environmental and economic sustainability issues.
