The Market

biofuel

Biofuels can be made from an array of edible and non-edible vegetable oils, animal fats, and used cooking oils, and are a renewable alternative to fossil fuels.  They can be used as a purified plant oil to produce heat, light and electricity from appropriately-tuned generators, or processed into biodiesel and biojet as a direct or blended replacement with no engine modification.  Whereas burning fossil fuels releases ancient carbon into the atmosphere, the carbon from biofuel is captured from the atmosphere by growing the plants used as the biofuel feed-stock source.  Biofuels are one of a range of measures to address climate change and its technical simplicity means biofuels are available now.

Jatoil’s business is based on developing the biofuel feedstock crop jatropha curcas (see About Jatropha) and other sustainable energy solutions.

 

aviation fuel (biojet)

The aviation industry has been very public in its search for more sustainable fuel sources.  Major airlines are collaborating through groups such as the Sustainable Airline Fuel Users Group to explore these opportunities, including British Airways, SAS, Gulf Air, Cathay Pacific, Air New Zealand, and Virgin Atlantic amongst others (www.safug.org).

Biojet is a huge potential end-market.  The International Air Transport Association (IATA), the industry body representing the top 230 airlines in the world, have a stated target of 10% of the aviation fuel market to be from renewable sources by 2017. This represents approximately 400 million tonnes per annum by 2017.  There have been several successful trials of biojet made from jatropha (and a few other vegetable oils such as camellina) that have proven the technical credentials of biojet, and its suitability as a drop-in replacement for crude-oil-derived jet fuel.  Recent trials of jatropha-based biojet have also found improved efficiency over fossil fuels, which is a significant advantage in an industry where fuel costs are approximately 40% of their total costs.  Jatoil has established itself as one of a few globally-recognised jatropha players, placing itself in a prime position for opportunities as the biojet market gains momentum.

 

biodiesel

Biodiesel volumes are expected to quadruple between 2005 and 2030, from 0.6 to over 2.4 million barrels per day, and grow to around 9% of the world liquid fuel market.  This significant growth is being driven by a steady increase in global energy demand (coupled with the need for energy security) as well as an ever-increasing focus on curbing carbon emissions, such those from traditional sources such as fossil fuels.  Governments are now mandating the use of biofuels to address these issues, and there are specific international forums to set targets for reducing carbon emissions globally.  Biofuels will continue to be a major part of the solution for the foreseeable future.

Biodiesel is already in widespread use around the world, particularly in Europe where diesel vehicles are prevalent and mandated targets ensure increasing demand.  Growth of the market for biodiesel is also being driven by environmental concerns, tax incentives, high crude oil prices and concerns about the security of global oil production.  The world market for biodiesel is worth $8 billion and is growing strongly, in part because of an ambitious EU target for biodiesel to comprise 5.75% of diesel sales by 2010.

Recent conferences and media coverage confirmed the heightened global interest in crude jatropha as a substitute biofuel feedstock and Jatoil’s position as a significant early starter in this emerging industry.  We are seeking to form partnerships to develop industry-wide principles on sustainable development - making the best economic use of lands, avoiding environmentally sensitive areas and contributing to the development of local communities.

The addition of biodiesel to fuel blends also provides advantages:

  • Improved ignition and combustion because biodiesel's higher quality allows engines to run more smoothly;
  • Greater lubricity reduces engine wear;
  • Reduced emissions of unburned hydrocarbons, carbon monoxide and particulate matter because naturally-occurring oxygen burns the fuel more completely;
  • Fewer emissions of sulphur dioxide because biodiesel is naturally sulphur free;
  • Reduced net emissions of the greenhouse gas, carbon dioxide, which is absorbed from the air during plant growth;
  • Higher flashpoint makes the fuel safer to handle; and
  • Increased biodegradability, which is particularly important in marine applications.
 

the-rise-of-biofuel

the rise of biofuels

Biofuel volumes are set to quadruples between 2005 and 2030. Why? There continues to be a steady increase in global energy demand coupled with the need for energy security, and the volatility in the mineral oil market, will drive biofuels volumes. They will grow from 0.6 to 2.4 million barrels per day and by 2030 account for 9 per cent of the world liquid fuel market. Climate change & carbon emissions continue to be important national and international issues. Governments are now mandating the use of biofuels to address these issues, and there are specific international forums to set targets for reducing carbon emission globally. Biofuels will continue to be a major part of the solution for the foreseeable future.