Vietnam is the location of Jatoil’s first large scale biofuel operations because it offers significant attractions for jatropha production. The availability of marginal land and strong domestic fuel markets, together with supportive government policies for biofuels and rural development are major factors. Since jatropha is able to grow in marginal soils not being utilised for food production, it creates a new industry that can provide incremental income for farmers in poorer, rural areas.
Jatoil's commitment to social, environmental and economic sustainability is supported by partnerships with established local companies to leverage networks and knowledge. Our local partner, Green Energy Vietnam (GEV), has developed a strong network of partners in government, with farmer co-operatives, agronomy specialists and experts in rural development - such as the Dutch development organisation SNV.
The business model is based on contract farming of jatropha, through commercial producer organisations -farmer co-operatives. The co-operatives represent the interests of the farmers, enabling them to access better prices for farm inputs and to manage harvest logistics and payments. In return, GEV provides seedlings, training and other farm inputs to establish the trees and purchases the harvested seed. Contracts are established in consultation with the co-operatives, local government representatives and SNV to ensure fairness to all parties. Farmers receive a stable income and retain control of their land in line with our social and environmental sustainability policy, and Jatoil is guaranteed receipt of the harvest. The system reduces supply chain complexities. One added benefit for the farmers is the opportunity to intercrop or graze livestock on the land during the maturation of the jatropha trees. At present, GEV is undertaking its first major expansion to plant approximately 850 hectares by the middle of 2010. Plans are for up to 25,000 hectares during the next four years, yielding approximately 40,000 tonnes of crude jatropha oil per annum at maturity.
Below Google Earth map of our current jatropha plots in the Nihn Thuan Region (updated after a new plot is added).


