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D1 Oils Exits Biodiesel Refining Business, Focuses on Jatropha Plant Science

D1 Oils, a UK-based early entrant into the global biodiesel market (earlier post), has restructured its business to concentrate exclusively on upstream plant science; the company has closed its two UK refining sites at Middlesbrough and Bromborough and ceased oil biodiesel trading activities.

Its principal focus now is the provision of the technology and services required to turn Jatropha curcas into a low-cost, sustainable crop for biodiesel. The company now has two components: a wholly-owned plant science business (D1 Oils Plant Science Limited, DOPSL); and a 50% stake in a joint venture with BP for the global planting and harvesting of jatropha (D1-BP Fuel Crops Limited, D1-BP Fuel Crops) (earlier post).

DOPSL is the exclusive supplier to D1-BP Fuel Crops, on a cost-plus basis, of selected jatropha seedlings and related agronomy support and expertise. DOPSL will also receive royalty payments related to the future yield performance of the crop.

DOPSL has established four new global development centers: one in Lusaka, Zambia; and three in India—Udaipur in Rajasthan, Golaghat in Assam and Hyderabad in Andhra Pradesh. Approximately 50 selected accessions of jatropha plant material are currently undergoing global yield and product placement trials to identify the cultivars that are best adapted to different planting areas. The best performing material will form the basis for future selections of high-yielding commercial varieties.

DOPSL is also running agronomy research trials to test a range of cultivation practices. DOPSL currently has a total of 34 product placement and 39 agronomy research trial sites in operation worldwide.

DOPSL says that its seed orchards for the production of selected E1 material, capable of increased yields of oil with a good biodiesel profile, are fully operational and supplying joint venture planting. DOPSL expects to deliver sufficient seedlings to plant up to 20,000 hectares by year end. In addition, 11 new accessions showing promising results in preliminary yield trials have been put into the DOPSL multiplication process.

With jatropha planting sufficiently established, the company has contracted with an independent agency to evaluate the profile of the supply chain for jatropha biodiesel against a range of established emissions criteria.

The initial results, based on data from existing planting, are in line with our expectations and indicate that jatropha biodiesel has the potential to deliver significant levels of carbon saving compared to mineral diesel. Given the levels of carbon savings that biofuels will be required to deliver under obligation schemes in developed markets such as the UK and the EU, we believe jatropha compares favourably to other available biodiesel feedstocks. We will be subjecting the initial conclusions to peer review and gathering further data as planting matures and D1-BP Fuel Crops establishes its supply chain.

—Interim Results 2008

As of 19 September, D1-BP Fuel Crops has 257,730 hectares under cultivation, the majority in India. The ongoing pace of planting is expected to result in total net planting of approximately 300,000 hectares (3,000 square kilometers, 1,158 square miles) by the end of the year.

D1-BP Fuel Crops produced its first crude jatropha oil (CJO) in the first half of 2008 and expects to deliver approximately 1,000 tonnes of CJO globally from grain harvested in 2008. Volumes of oil will increase in 2009 as existing trees mature and younger trees become productive.

Comments

Polly

"The ongoing pace of planting is expected to result in total net planting of approximately 3,000 square kilometers (1,158 square miles) by the end of the year."

Wow, that's a lot of planting!

D1 Oils is a company to watch. The company has been very enterprising in setting up deals with plantation owners such as tea plantations. This has been so successful it has now taken over as the core activity of the company.

Jatropha is a fascinating choice of plant for biofuel:
It was traditionally used as a hedging plant because the inedible nuts deter grazing animals.
It grows on marginal soil and was used for stabilising degraded farmland.

Jatropha oil being widely planted across rural areas in the developing world may help to dampen the effect of spikes in the global crude oil price.
When working on development projects in remote African rural areas, it was clear that rising crude oil prices affect developing countries even more harshly developed countries, partly due to weak currency.

Due to low yields per acre, jatropha oil will only contribute a small portion of world demand for transport fuel, but it will boost rural economies in some poor countries by providing a cash crop and reducing crude oil imports.

DaveD

Polly, Do you know the yield per acre of Jatropha? I've heard some good things from friends, but can't find any good projections to compare it to soy or rapseed.

DaveD

Oops, sorry. I found the answer myself.

Wow! No wonder everyone is trying to grow oil palm. Check out the table about a third of the way down this page:
http://attra.ncat.org/attra-pub/biodiesel_sustainable.html

And the numbers for algae based biodiesel are totally shocking...for both good and bad reasons.
Some sources are claiming that algae based biodiesel can produce as much as 10,000-12,000 gallons per acre, BUT the DOE is saying that it currently costs as much as $20 per gallon (over $800 per barrel).

However, a few new companies such as the one that Bill Gates invested $50Million into last month claim they will be able to produce it for $50-$80 per month.

Don't know whether to believe the worst case scenarios or the best case scenerios...probably neither.

http://earth2tech.com/2008/09/17/bill-gates-jumps-into-pond-scum-sapphire-raises-over-100m/

http://www.biofuelsdigest.com/blog2/2008/05/09/floating-sock-algae-process-propels-florida-plants-yield-projection-to-10000-gallons-per-acre/

Oh well, it all looks like it's got a few years to go. I guess I'll go back to playing with my hybrid electric car.

Trehugger

3000 square kilometers is not a lot at all. My understanding is that yield of Jatropha are not well establish since they can varry a lot depending how and where you grow them, plus the extensive culture of this true was non existant until now so they probably need a few years to optimise it, the number I have in mind was about 1 Ton of biodiesel per acre not as good as palm tree on which they get 2 ton/acre and can go well beyond that. Tallow chinese tree can yield 3 Ton/acre but the harvest of the oily fruit has to be manual...Tallow chinese tree is even more robust plant than Jatropha but it's an invasive pest though a beautiful tree.

Aussie

Treehugger I notice in the spring Down Under that Chinese Tallow trees are barely starting to bud while apple trees for example have flowered. If CT is to be an oil tree it needs to grow faster and be machine harvested like olives. Some biodiesel is being made here from poppyseed oil as a byproduct of legal opiate production. Since algae oil is going going nowhere fast I don't really see a great future for biodiesel or hydrogenated veg oils. Niches may be as a 'starter' for CNG vehicles, range extenders for Volt type cars (if they ever live up to expectations) and as aviation fuel for rich folks and the military.

Polly

Here are some quotes regarding jatropha yield:

"A hectare of jatropha produces 1,892 liters of fuel, which is better than rapeseed and far better than soybean or corn, according to data gathered by the Global Petroleum Club, an energy networking organization funded by the private-equity firm Forrest Equity Management."

"The Energy and Resources Institute (TERI), an Indian research group, launched a 10-year, $9.4 million project to research issues involved in taking jatropha from seed to filling station. One challenge is growing the plant in poor soil.

Some governments and some corporations consider the jatropha plant, common in hot climates, one of the most promising sources of biodiesel. The plant can grow in wastelands, and it yields more than four times as much fuel per hectare as soybean, and more than ten times that of corn. But the commercial-scale cultivation of jatropha, which has not previously been grown as a crop, raises several significant challenges.

The first crops of jatropha, planted in what was wasteland, have now flowered, says Alok Adholeya, director of TERI's Biotechnology and Management of Bioresources division. "It proves that we can do this," he says. He and other researchers at TERI spent five years testing different mycorrhiza microorganisms, symbiotic fungi that improve the ability of many plants to grow in poor soil. Adholeya's team found that the most effective was a fungus in the glomus species (he is not currently disclosing the exact fungus), which improves jatropha yields by 15 percent.

The TERI project is working in rural Andra Pradesh, a state in southeast India, collaborating with local financial institutions to develop loan guarantees to fund seed purchases; it's also collaborating with insurers to back the farmers against potential losses. In addition, it had to educate the farmers on how to cultivate the plant.

So far, the project has signed up 5,000 farmers representing 1,000 hectares of land. The goal is to have 8,000 hectares under cultivation by March 2008, and Adholeya says that the success of the first crops has drawn interest from many more farmers. By the end of 2008, TERI plans to have a production facility producing biodiesel from jatropha. Eventually, it aims to produce 90 million liters of biodiesel annually."

"Adholeya is also working on breeding jatropha to improve its yields. He leads a team of 20 microbiologists, molecular biologists, and field breeders who are looking for the genes in jatropha that cause it to fruit so that they can enhance the percentage of oil in the seed. He expects that it will take 18 months to isolate the genes and begin working to enhance them. The researchers plan to use a technique called molecular-assisted breeding, in which they identify a gene of interest, select particular genotypes, and breed them. Adholeya expects that by 2012, modified jatropha plants will be in cultivation.

He says that the Indian government, taking note of a report by TERI, is considering a national initiative around developing jatropha crops as a major source of fuel. That report calls for India to plant 400,000 hectares of jatropha in 22 of India's 28 states.

India is not alone in its interest in jatropha. Indonesia's government is promoting jatropha cultivation, as are several governments in Africa. Jatropha is attractive because of several desirable properties: it can grow in poor soil and survive drought; it's a perennial with an economic life of about 35 to 40 years; and it only needs two to three years to develop into a cash crop.

Jatropha seeds, when crushed, produce large quantities of an oil that can easily be converted to biodiesel that performs at levels close to that of conventional diesel oil.
'Jatropha is a one-stage conversion [to biodiesel],' says Adholeya, explaining that converting the plant oil to an oil that can be burned as fuel requires only one stage of heating and mixing with methanol.'"

By contrast BTL, CTL & CBTL require vast capital investment in sophisticated equipment, so they need capital and highly skilled staff.

Jatropha can provide a cash crop from the parts of farms with marginal soils which are unsuited to other crops.

Also Jatropha oil or biodiesel can be used in farm tractors and machinery displacing expensive diesel from imported crude oil. This will reduce the impact of high crude oil prices on farming costs.

Hence there is a niche for jatropha in rural areas of developing countries.

ziv

(The project has signed up 5,000 farmers representing 1,000 hectares of land)

That is amazing! 1/5 of a hectare (a half acre, or about half a football field, without the end zone) on average per farmer? I think it is time for these farmers to find another line of work. Barring that, I hope this land can become incredibly productive.

Why do visions of Jack Shaftoe's Indian Kingdom suddenly appear before my eyes?

a.b

I concluded that green algae farming is the only sustainable method to produce biofuel and that foods need to be eaten before becomming fuels at the sewage treament plant.

Engineer-Poet
1/5 of a hectare (a half acre, or about half a football field, without the end zone) on average per farmer?
When you consider that jatropha
  1. takes 3-4 years to yield the first crop, and
  2. is well-suited for hedgerows (and is probably being used for that instead of entire fields), and
  3. family plots may be only a few acres,
half an acre per farmer isn't half bad.
ziv

E-P, that occurred to me as well, but I kept thinking of the Indian farms of Half Cocked Jack in the Baroque Cycle and the image just seemed to fit. My comment was intended to be ironic but it didn't translate.
I come from a ranching/farming family and you are right, no farmer is going to convert more than a fraction of their land to a long-term test of a new crop.

Engineer-Poet

I wouldn't take Stephenson's sketch of Shaftoe's stint as a Mogul king too seriously; nobody's going to try to grow just one potato either.

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