Biofuels producer D1 Oils and petroleum manufacturer BP have formalised a 50:50 global joint venture (JV), called the D1 BP Fuel Crop, which has been created to accelerate the planting of jatropha curcas, a drought-resis- tant, inedible oilseed-bearing tree that can be harvested for liquid fuels.

D1 Oils Africa CEO Demetri Pappadopoulos says the operation will focus on areas where D1 already has a footprint, as well as exploring the plantation possibilities in other countries.

Under the terms of the agreement, which was formalised in October, BP and D1 Oils intend to invest about $160-million over the next five years, with D1 Oils contributing its 172 000 ha of existing plantations in Southern Africa, South East Asia, and India. The JV will have exclusive access to the jatropha curcas seedlings produced through D1 Oils' plant science programme.

It is expected that some one-mil- lion hectares will be planted over the next four years, with an estimated 300 000 ha/y thereafter. Investments will be made through directly managed plantations on owned or leased land, which will also provide employment for local communities, and through contract farming and seed purchase agreements.

ECONOMIC and SOCIAL SPIN-OFFS

Pappadopoulos says D1 BP Fuel Crop takes its position in the South African economy seriously. "We would like to contribute economically as well as socially to the communities in which we operate. "We understand that when you plant anything, there is an environmental impact, and if we operate in a controlled manner, we can substantially benefit the communities we operate in."

The jatropha curcas oil that is produced from the plantations will be used to meet both local biodiesel requirements, and for export to markets such as Europe, where domestic feedstock produced from rapeseed and waste oil is unlikely to be sufficient to meet the expected regulatory- led demand for biodiesel, of about 11-million tons a year, from 2010.

Pappadopoulos says the JV aims to become the largest biofuels feedstock producer in the region. "The partnership between D1 Oils and BP is a very strong one, and the possibility of the JV becoming the largest feedstock producer in the region is already viable owing to D1's footprint in the area."

D1 Oils Africa has been in operation for several years, with employment spin-offs climbing into the thousands during planting season.

Planting operations are currently established in Swaziland, Zambia, and Mozambique. "We are building our feedstock base and have been investing a lot of money. "The plantation is partly commercial and partly out-growers, and we have partnerships with some farming organisations in the area." Possible opera-tions in South Africa are still under negotiation with local government, says Pappadopoulos.

Possible refining sites have also been identified in South Africa, along with several other global locations. "We have established some very important strategic partnerships in South Africa, as well as in the private and government sectors to develop a significant refining operation."

The biodiesel refining will be done on a commercial basis, says Pappadopoulos, using technology developed by D1 Oils. The technology can be used singly, or in combination, to build a refinery with a capacity from 8 000 t/y upwards. The D1 technology can produce biodiesel from a range of vegetable oil feedstocks, including rapeseed, soya, palm, and jatropha curcas to the European EN 14214 biodiesel standard.

Pappadopoulos says since the inception of its operations in Africa, D1 Oils has dealt with a severe misconception around biodiesel and the company's preferred feedstock. "People do not seem to understand what jatropha curcas is, and owing to the lack of information, a number of false statements have been made." He adds that educating the communities and general public on the use of jatropha curcas and the environmental benefits to biofuels is high on the priority list for D1 Oils.

GET-RICH-QUICK IMPEDIMENT

"Another challenge has been the get-rich-quick attitude that a lot of people approach the bio- fuels industry with. It has created a lot of nega- tivity around the industry, but we have found that the governments of our operation countries have been very supportive in serious ventures. "They often take a cautious view, but the key is to work alongside them. The industry needs the government and the private sector to work together, in order to succeed."

He states that D1 Oils Africa hopes to create enough refining capacity, within the Southern African Development Community region, to meet one-third of South Africa's commercial biofuels demand. "If everything stays constant for the next five years, a 5% blend into the biodiesel con- sumption of this country would equate to about 600 000 t/y. One-third of that is about 200 000 t/y, which is certainly achievable. Of course, the size of the market is much larger than that."

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