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New jatropha biofuel venture in Philippines

A consortium of investors from Japan, South Korea and the Philippines has launched a pilot project to develop biofuels in the Southern Philippines.

The joint venture has been named Sarangani Bio Corporation. The investors intend to develop 50,000 hectares (123,500 acres) of land on Mindanao island to cultivate the biofuel crop jatropha. During the pilot phase, production will be started on 100 hectares with an initial investment of just over $65,000 (US).

Jatropha is a resilient plant that can grow on land unsuitable for food crops. According to the investors, the Philippine government supports its use as a biodiesel feedstock.

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Jatropha biodiesel: Coming to a farm near you

LOS BAÑOS, Laguna—Two years since local research efforts into jatropha began, the shrub, planted by some farmers as a natural fence, may soon be put to better use.

A plan to create more energy-independent communities using jatropha methyl ester (JME) in diesel for the country’s poorest rural areas may be realized before the end of this year, according to Rafael Coscolluela, vice chairman of the government run National Biofuels Board (NBB).

Citing the speed by which this program can be implemented, Coscolluela said the NBB has been working with the University of the Philippines Los Baños (UPLB), which is spearheading JME research, toward putting up a replicable model for village-type jatropha operations all over the country.

The NBB chief is targeting pilots to be set up within 2009.

“There is a parallel market that can be met by jatropha diesel fuel,” said Coscolluela, former governor of Negros Occidental province, at the sidelines of a biofuel forum held last week.

The forum was hosted by the Southeast Asian Regional Center for Graduate Study and Research in Agriculture (Searca), in a two-day conference which brought together officials from the government and academe involved in the biofuel sector.

Coscolluela further said even with the current oversupply of the more prevalent diesel with coconut methyl ester (CME), he sees a large demand for JME diesel for small towns and communities in the provinces.

Describing the current situation, he said coconut farmers sell their produce to big oil players and processing plants, which then sell their biodiesel through gasoline stations. However, these stations are often inaccessible to small provincial towns, he said, adding that diesel prices tend to be more expensive the farther away one is from Metro Manila.

JME diesel can fuel cooking stoves and power small-town generators, as well as farming equipment and vehicles like tractors and pumps that run on diesel engines.

“If diesel fuel from jatropha is produced in the rural areas for local consumption, just imagine how much you’re saving in terms of transportation costs alone,” said the chief of the NBB, which oversees the Philippine biofuel program.

This program is not without precedent. According to India-based International Crops Research Institute for the Semi-Arid Tropics (Icrisat), a global independent research institute aiding poor semi-arid areas, they have had some success in using biodiesel to help sustain village needs.

“Research for development is the new paradigm,” said Dr. Rex Navarro, a Filipino who is the director of communication and special assistant to Icrisat’s director general Dr. William Dar, former Philippine Department of Agriculture secretary.

He also noted improvements in the villages around Hyderabad City, capital of the southern Indian state of Andhra Pradesh.

In partnership with the Indian government, Icrisat succeeded in creating a rehabilitation model for 300 hectares of common degraded land in the Rangareddy district in the outskirts of Hyderabad, and also in the poor tribal villages in the northern Adilabad District.

Icrisat said the biofuel extracted from these areas are derived from jatropha and pongamia tree seeds, also a nonedible source of biodiesel, and are used locally in villages or sold in markets.

Dr. Virgilio Villancio, UPLB’s program leader of the integrated research and development program on jatropha for biodiesel, estimated that jatropha investments for the Philippines would cost P2 million to P3 million per town. The expense, he said, is mostly for the shrub’s processing equipment.

A jatropha oil expeller, which separates oil from the jatropha seed, costs at least P2 million.

This machine can extract some 1,000 liters of jatropha oil a day and is suitable for a 200-hectare jatropha field—a land area nearly 15 times the size of the SM Mall of Asia in Pasay City.

UPLB estimates that there are some 1,500 liters of jatropha oil—from about 1,600 plants—per hectare. After processing, this quantity, said Villancio, can supply the diesel requirements of a small town.

Villancio did not give specific areas where they will set up pilot facilities, but noted in his presentation several suitable locations identified by the Department of Agriculture and the Department of Environment and Natural Resources.

These include broad swaths of lands in Cagayan Valley, Ilocos, Calabarzon, Central Luzon, Bicol, Mindoro , Palawan, Central and Eastern Visayas, Caraga and Zamboanga, among several others. Overall, there are almost 13 million hectares of land suitable for jatropha planting.

Clearing misconceptions

This latest direction for the jatropha program underscores how sentiments toward the crop have evolved in recent years. Jatropha’s ascension as a miracle crop, and then decried as a “blunder” crop, was largely due to the lack of information available then, said Villancio.

“In the Philippines, the hype went ahead of development, so we in development had to catch up,” he said, noting the number of farmers who started planting jatropha without fully understanding how to treat it, or even the correct variety to plant.

Villancio said UPLB has conducted research on hundreds of samples of Jatropha curcas, the crop’s scientific name, based on oil yield and fatty-acid profile, among other characteristics. Today, UPLB has narrowed that list to over a dozen promising selections, he said.

Meanwhile, the two-year study titled “Ex-Ante Socioeconomic and Institutional Assessment of Jatropha Production, Promotion and Development as Biodiesel” sought to provide the social impacts as well as field realities of jatropha as a biodiesel source.

It was carried out by UPLB in 15 locations across Luzon, Visayas and Mindanao and is set to be concluded in July 2009.

Dr. Nena Espiritu, assistant professor at the UPLB College of Forestry and Natural Resources, shared partial results from the study, in which she is the project leader.

Citing excerpts from the report, Espiritu corrected many early misconceptions about jathropa like claims that it will compete with food, as farmers switch to jatropha farming instead of food crops. Jatropha is a nonfood crop, unlike coconut.

Almost 50 percent of farmers polled disagreed that jatropha production will overtake food production. They reasoned that jatropha will only be planted in marginal or poor-quality lands, and also because food crops can be readily sold and can sustain their needs.

Meanwhile, two-thirds of farm implementers also see no food-fuel competition, for similar reasons.

Another belief was that jatropha needed minimal input requirements like water, fertilizer, pesticides and less laborers. But according to UPLB, the crop is susceptible to pests like yellow mites and red spider mites and thrips, a small winged pest.

She acknowledged that crops need maintenance, and therefore can be very labor-intensive.

Yet, it is also for this precise reason that jatropha farming presents opportunities to create more jobs in towns and villages.

Jatropha for income augmentation

In the UPLB study, a significant number (95 percent) of farmers and implementers hold a favorable view of jatropha, anticipating that it will deliver more income and jobs, among other reasons.

Villancio said that for now, prices are at P6 to P7 per kilogram (kg). One hectare of jatropha holds an average of 5,250 kg (5 tons) of seeds, according to the UPLB scientist.

“At that price, farmers can make money, but not that much,” he said. He added that more research should be put into a detoxification study, to determine the viability of selling jatropha byproducts to produce, for instance, fertilizers and even livestock feed. The jatropha seed has toxic characteristics.

Villancio also noted that the village model is favored over large-scale plantations because JME in diesel is not competitive with mainstream diesel prices due to the lower cost of global crude-oil prices, which as of Friday have slid over 60 percent since its peak in July 2008.

Technology improving

Villancio said that research has also improved particularly with jatropha-growing techniques.

Improvements in pruning, for instance, increased the number of fruiting branches. UPLB can now achieve 48 fruiting branches per shrub. Jatropha seed, about two to three per fruit, has yields of 30 percent to 40 percent crude nonedible oil. The oil expeller can recover some 80 percent of seed oil content.

Intercropping, or planting other produce with jatropha, is also being used. Citing UPLB research studies, Villancio said turmeric and sweet potatoes are the best performers among trials, which included papaya, pineapple and arrowroot, a root crop.

Challenges still remain, like the length of time to develop jatropha fields. While jatropha plants may start bearing some fruit in six months, and harvesting may occur by the eighth month, Villancio said it would still take three to four years for it to reach full productivity. Also, issues on funding support and tenurial issues of land committed for jatropha have to be worked out.

“Biofuels present just one solution; we can’t pretend that this will solve all problems,” said Coscolluela. “But it can contribute a lot of we do it properly.”

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Plans for 2,000-hectare Jatropha Plantation

PHILIPPINES – The Philippine National Oil Company – Alternative Fuels Corporation (PNOC-AFC), the biofuels arm of state-owned PNOC, together with the Local Government Unit (LGU) of Rodriguez, Rizal and the Montalban Farmers Multi-Purpose Cooperative have signed a tripartite agreement for a 2,000-hectare jatropha plantation in Montalban.

“With the signing of the tripartite pact, the efforts of PNOC-AFC, the local government of Rodriguez, Rizal and the Montalban Farmers Multi-Purpose Cooperative, relative to the jatropha production project are strengthened and consolidated. We all intend to pool and commit our resources to attain the production target of jatropha to expedite the Biofuels Project of the PNOC-AFC,” said Romeo P. Tolentino, PNOC-AFC president and CEO.

Under the Memorandum of Agreement (MOA), the PNOC-AFC will be funding an initial area of 500 hectares with a total project cost amounting to Php 9.125 million, while the funding for the balance of 1,500 hectares is subject to availability of funding and budget approval.

“The funds for the project will be released to PNOC-AFC’s grower-partner which is Montalban Farmers Multi-Purpose Cooperative in accordance with the Work and Financial Plan. The market for the jatropha seeds that will be produced from the plantation will not be a problem since the PNOC-AFC will be the assured market,” said Tolentino.

Also, the PNOC-AFC shall supply the jatropha seedlings and other farm inputs as well as pay for the labor during the planting process. The jatropha seedlings will be sourced from PNOC-AFC’s nurseries in Los Baños and Pampanga – the nearest nurseries from the site. The company will likewise provide technical assistance for the setting up of the plantation and help in its maintenance.

Meanwhile, the grower-partner will manage the plantation together with PNOC-AFC.

It will also provide the necessary labour to establish the plantation and maintain it, while complying with all the permitting requirements from appropriate government agencies.

The land that will be used in the plantation consists of ancestral lands of the Dumagats in Montalban. Majority of the members of the Montalban Farmers Multi-Purpose Cooperative are the owners of the ancestral lands where the jatropha will be planted.

The local government of Montalban will participate in the project by investing in cash crops to be intercropped in the jatropha plantation thereby augmenting the financial needs of the farmers while waiting for the jatropha’s optimal yield.

“The MOA was made to establish the formal working relationship of the three parties to synchronise and strengthen all existing efforts supporting the development of alternative fuels in the country,” added Tolentino.

The signing of the MOA was held at the PNOC-AFC office in Makati City on 8 May and was attended by top officials of the three parties, including: PNOC-AFC Chairman Genaro Rafael K. Alvarez III, and President and CEO Romeo P. Tolentino; Rizal mayor Pedro S. Cuerpo; and Montalban Farmers Multi-Purpose Cooperative chairperson Benilda Cuerpo.

The PNOC-AFC has the primary purpose to explore, develop and accelerate the use and commercialisation of existing and emerging alternative sources of energy and technologies and carry on the business of alternative fuels and other related activities. The company has been directed by Her Excellency Gloria Macapagal-Arroyo to have the primary responsibility over the Biofuel Project and to be the one to coordinate with the concerned agencies.

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Jatropha can raise rural incomes – study

MANILA, Philippines – Rural households can increase their income by growing jatropha.

Attesting to this is a study done by the University of the Philippines Los Baños-College of Forestry and Natural Resources (UPLB-CFNR).

Conducted by Dr. Nena Espiritu, Leni Garcia, Ma. Cynthia Casin, and Aresna Palacpac, the study was founded by the Philippine Council for Agriculture, Forestry and Natural Resources Research and Development (PCARRD).

Dr. Espiritu presented the results of the two-year study at a workshop on biofuels organized for media practitioners by the UPLB-based Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA).

The workshop was supported by the Department of Energy, National Biofuel Board, Philippine Agricultural Development and Commercial Corp., Sugar Regulatory Administration, International Crops Research Institute for the Semi-Arid Tropics, US Agency for International Development-Environment and Clean Air Project, and World Agroforestry Center.

Dr. Espiritu reported that the majority of the study’s respondents attested that jatropha could help meet household expenses.

In another way, jatropha can make idle or vacant lands productive.

Respondents in the study were 50 households, as well as municipal and barangay leaders, in 15 sites in Luzon, Visayas, and Mindanao.

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First Jatropha genome completed by Synthetic Genomics Inc. and Asiatic Centre for Genome Technology

LA JOLLA, Calif. and KUALA LUMPUR, Malaysia – Synthetic Genomics Inc. (SGI), a privately held company applying genomic-driven commercial solutions to address global issues, and Asiatic Centre for Genome Technology (ACGT), a company focused on the commercial application of genome technology to improve oil palm and other crops, today announced completion of a first draft, 10X assembly of the jatropha genome. The completed jatropha genome represents another significant milestone in the ongoing joint venture between ACGT and SGI announced in 2007. The partners previously announced completion of the oil palm genome in 2008. ACGT is a wholly owned subsidiary of Asiatic Development Berhad, an oil palm plantation company and a member of the Genting Group.

ACGT and SGI have focused on Jatropha for several reasons: it is a tropical tree that is one of the highest yielding oilseed plants in the world; it can be grown on marginal, non-food producing lands; has a very short generation time; can be productive for 30 to 40 years; and its seed oil and biomass are ideal for biofuel production. Jatropha is a non-domesticated plant which makes it an ideal subject for genetically engineered improvements.

The sequencing of the genome, using both traditional Sanger sequencing and next generation sequencing, has revealed that the jatropha genome is approximately 400 million base pairs in size, similar to the size of the rice genome. The teams are now working on annotating the genome to identify particular genes of interest and to discover genetic variations for use in marker assisted breeding. The teams are also applying traditional breeding tools, as well as modern plant molecular biology tools, to improve plant yield, oil quality, fertilizer requirements and to enhance stress and disease tolerance.

ACGT and SGI have also been exploring the microbial life around the jatropha tree using environmental genomic techniques to sequence and analyze jatropha’s root, soil and leaf bacterial and fungal communities. By understanding these environments SGI and ACGT will be able to develop diagnostic tests for plant diseases and agents for disease control, leading to healthier and more productive crops. These genomic solutions also allow for more efficient land usage with improved stewardship of the plantation environment.

“Having the sequenced genome of jatropha will enable us to develop new, sustainable energy feedstocks that grow on marginal land or in more arid climates and that do not compete with agriculture for food production,” said J. Craig Venter, Ph.D., founder and CEO of SGI. “SGI and ACGT will be hard at work on the next steps to use our methods to improve these oilseed crops so that we have higher yielding plants for biofuels, microbial fertilizers, and biologically-based disease control methods.”

“The completion of the jatropha genome is yet another significant milestone for ACGT and SGI. It will accelerate our goal of commercially cultivating high-yielding jatropha for biodiesel production,” said Tan Sri Lim Kok Thay, Chief Executive of Asiatic Development Berhad.

About Synthetic Genomics Inc.
SGI, a privately held company founded in 2005, is dedicated to developing and commercializing genomic-driven solutions to address global energy and environment challenges. Advances in synthetic genomics present limitless applications in a variety of product areas including: energy, chemicals and pharmaceuticals. The company’s main research and business programs are focused on major bioenergy areas: designing advanced biofuels with superior properties compared to ethanol and biodiesel; harnessing photosynthetic organisms to produce value added products directly from sunlight and carbon dioxide; developing new biological solutions to increase production and/or recovery rates of subsurface hydrocarbons and developing high-yielding, more disease resistant and economic feedstocks. For more information go to www.syntheticgenomics.com

About Asiatic Development Berhad/ACGT
Asiatic Development Berhad (”Asiatic”), a 55%-owned subsidiary of Genting Berhad, commenced its operations in 1980 as the plantation arm of the Genting Group. Over the years, the Asiatic Group had embarked on several significant acquisitions in Malaysia, thus increasing its land bank from a mere 13,700 hectares in 1980 to nearly 66,000 hectares currently in line with its long term strategy, the Asiatic Group had, in June 2005, further expanded its operations to Indonesia, on a joint venture basis, to develop some 98,300 hectares. The Asiatic Group also owns 5 oil mills with a total milling capacity of 235 tonnes per hour and is reputed to be one of the lowest cost palm oil producers with fresh fruits bunches production of over one million tonnes. Asiatic is one of the early members of the Roundtable on Sustainable Palm Oil (RSPO). For more information go to www.asiatic.com.my.

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