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New BP and DI Oils biofuels venture.

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BP and D1 Oils are to form a 50:50 joint venture, to be called D1-BP Fuel Crops, to accelerate the planting of Jatropha curcas — a drought resistant, inedible oilseed bearing tree that does not compete with food crops for good agricultural land or adversely impact the rainforest — in order to make more sustainable biodiesel feedstock available on a larger scale. Under the terms of the agreement, BP and D1 Oils intend to invest around $160mn over the next five years. D1 Oils will contribute into the joint venture its 172,000 hectares of existing plantations in India, southern Africa and south-east Asia and the joint venture will have exclusive access to the jatropha seedlings produced through D1 Oils' plant science programme.

'As jatropha can be grown on land of lesser agricultural value with lower irrigation requirements than many plants, it is an excellent biodiesel feedstock,' said Phil New, head of BP Biofuels. ' D1 Oils' progress in identifying the most productive varieties of jatropha means that the joint venture will have access to seeds which can substantially increase jatropha oil production per hectare.'

The joint venture will focus on jatropha cultivation in south-east Asia, southern Africa, central and south America and India. It is anticipated that some 1mn hectares will be planted over the next four years, with an estimated 300,000 hectares per year thereafter.

'Once all the planned plantations are established, the joint venture is expected to become the world's largest commercial producer of jatropha feedstock, producing up to 2mn t/y,' commented New.

 

 

 

Date:  15.08.2007


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Tony Holliday, 24.07.2009 09:23:12


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