The flight is the 130th for the U.S. space shuttle program, with four more missions remaining before the fleet is retired at the end of this year. Highlights of the mission include:

* Installing Tranquility, the International Space Station’s last connecting hub, which will house life support equipment, a toilet and exercise gear to support the live-aboard crew.

The module was built by Franco-Italian group Thales Alenia Space (TCFP.PA)(SIFI.MI).

* Installing what has been called the crowning gem of the orbiting station — a dome-shaped module with six trapezoidal side windows and a 31.5-inch (80-cm) circular top window, the largest viewing port ever flown in space. The cupola, which also was built by Thales Alenia Space, is intended as a robotics control station and viewing nook.

* Conducting three spacewalks to hook up the new modules. Veteran astronauts Robert Behnken and Nicholas Patrick are paired for all three spacewalks, which will be overseen by crewmate Stephen Robinson from inside the station.

* Delivering new parts for the space station’s broken water recycling system, designed to purify urine and other wastewater into potable water for drinking, cooking and other uses.

* Delivering new scientific experiments including a study on the Jatropha curcas plant, used for producing biofuel, to see if its breeding process can be sped up for commercial use. (Reporting by Irene Klotz; editing by Pascal Fletcher and Paul Simao)

“If there is biofuel available we will do the flights, but we have absolutely no reason to believe there would be any problem,” Rainer Ohler, senior vice-president for public affairs and communications told a news conference.

Ohler said Airbus, a subsidiary of EADS, had successfully tested gas-to-liquid fuel for Qatar Airways two years ago. The resulting fuel was as effective as normal jet fuel or kerosene, but without the sulphur smell.

While this offered an alternative to jet fuel, it did not reduce carbon emissions which biofuels promised. Unlike oil, biofuels can be constantly replenished and harvested.

But the process for synthesising fuel from gas, known as the Fischer-Tropsch process, could equally be used on biofuels, Ohler said ahead of the trial flight to Geneva of Airbus’s new 850-passenger capacity A380 airliner.

Airbus is planning to test biofuels with JetBlue Airways. Its American rival Boeing with which Airbus is cooperating on fuel and environment research, has already made several test flights using biofuel.

Paul Steele, executive director of the Air Transport Action Group (ATAG), an industry association for airlines, airports, planemakers and others in the aviation sector, said the biofuels targeted by the industry would be environmentally friendly.

They would not draw on food crops, require farmland or use excessive fresh water, in contrast to some crops used for producing motor fuel, he said.

The most promising crops are jatropha and camelina, but the industry also sees huge potential in producing biofuel from algae and plants that grow in salty water known as halophytes.

Ohler called on regulators to ensure that the aviation industry had priority access to biofuels, as other forms of alternative fuel, such as electricity, were not practical for planes.

Giovanni Bisignani, director-general of the International Air Transport Association (IATA), which groups 230 airlines, urged governments and oil companies to subsidise and invest in research in biofuel production. (Reporting by Jonathan Lynn; Editing by Stephanie Nebehay)

CNOOC is China’s largest offshore oil and gas producer, and got the go ahead from Beijing in July 2008 to use jatropha in its plant.

The refinery can produce 60,000 tonnes of biodiesel every year. It is now expected that the use of jatropha to generate biodiesel will reduce the amount of carbon dioxide emissions by 140,000 tonnes every year.

In similar news, in the northern Shanxxi province of China, China Integrated Energy is constructing a biodiesel refinery.

Production is scheduled to commence in the Q3 2010, with 150,000 tonnes being generated every year.

Bionas group executive chairman Mohd Safi’e M Jaffri said Bionas had started to embark aggressively on the development of jatropha bio-fuel in the country following a successful test conducted by German company, Elsbert.

With the German technology, Bionas set up a processing factory in Peninsular Malaysia, which is an assurance of a market for the crop.

“In the beginning stage, we encourage people to take part in the planting of jatropha. In Sarawak we started with a jatropha planting scheme called Projek Ekonomi Rakyat Sarawak (PERS). “

Bionas is prepared to provide up to 80 per cent subsidy on seedlings to anyone interested, and free seedlings to poor farmers in rural areas. The subsidy was limited to 10 acres per farmer.

Farmers need not worry that the crop would be destroyed by animals or insects as its fruit is poisonous (inedible). It normally fruits six months after planting with a life span of up to 50 years.

Hence the plant gives high yield but requires minimal supervision.

“Roughly 10 acres of jatropha (8000 plants) can generate a monthly income of RM3,000. Each acre can yield up to 3.6 tonnes or 300 kilogrammes per month. At the current price of RM1.05 per kilogramme, farmers with 10 acres of jatropha plant can earn RM3,000 per month.”

Jatropha could be seen as a crop that could help in the eradication of rural poverty, he pointed out.

As the demand for jatropha is expected to rise, its price would also rise, he said. This year the price is expected to reach RM1,500 per tonne.

Apart from production of bio-diesel and bio-petrol for our country, jatropha can also be used to produce bio-conola for the European market.

Farmers should not doubt Bionas’ role in developing the industry as it has the best technology in the world when it comes to supplying quality seedlings. It produces seedlings with 47 per cent oil content, he said.

Bionas has appointed 200 nurseries in the state, each nursery to get ready 50 million seedlings to be supplied to those interested. To date 121,000 farmers in the state have registered to participate in PERS involving about 500,000 acres located all over the state.

Bionas also carried out similar programmes in Indonesia, Philippines, Vietnam, Myanmar and Thailand.

Meanwhile, about 60 farmers attended a briefing on the scheme by Zurina Amnan at a hotel here yesterday.

Similar briefings will be held in other places like Kuching, Selangau, Julau, Belaga Kapit and Bintulu in the next few days, he added.

Among those present were Bionas coordinator for Sarikei Division, Ling Pan Ming.

The ancient crop jatropha grows wild here. It is extremely hardy and can survive in dry, barren soil – even though other plants cannot.

It used to be considered as bush with no commercial potential.

But the global search for clean energy has changed all that.

That is because the seeds can be harvested to make biofuel. It has meant that farmers are now taking to the crop with gusto.

Child’s play

Samson Nasary is one such farmer, and he is looking to jatropha as an important source of income.

He harvests the seed and takes it to a collection point where he meets an agent for a firm called Diligent Tanzania. The product is weighed and valued, then a deal is struck.

Mr Nasary says it was school children looking for extra pocket money who first led the way in raising awareness of the commercial potential.

“Initially, it was actually the kids who’d sell the seeds – and we really got interested and thought – why can’t we get the seeds and sell them,” he says.

“That’s why we’ve been collecting the seeds and selling them to Diligent.”

A few miles away from the farm, we come to a factory run by Diligent. The company doesn’t grow jatropha itself.

It buys seeds from farmers through its local agents.

Many uses

The heart of the operation is a hot, noisy, sticky place. The seeds are crushed, processed and turned into crude jatropha oil.

Once its been refined it can be used to power electric generators and cars.

Diligent run some of their vehicles on the stuff. Jatropha oil from this factory has even been used as fuel in a 747 making an experimental flight.

It can also be used to make other products like soap and candles. Researchers are looking into possible medical applications.

But here is the rub.

The government is facing complaints that food production is being threatened because so many farmers are focusing on jatropha rather than edible crops .

And that’s something a poor country like Tanzania can ill afford.

‘Green gold’

Faustina Manang works for Diligent. Her job is to liaise with the farmers and encourage efficient management of the crop.

The company is facing real pressure from the government to make sure jatropha does not squeeze out food production.

“The government is shouting about this because some of the farmers they plant only jatropha without food production,” she says.

“We try to tell them to to mix it with food production, like maize, like beans. They agree and they do that.”

The message does seem to be getting through, at least to some farmers.

Mr Nasary says he’s determined to continue growing food alongside his jatropha – and will only grow it where food cannot flourish.

But critics still question whether jatropha really can be the “green gold” its supporters claim.

Production is still small scale – most cultivation around the world is on plots of less than 12 acres.

Current production is certainly not enough to make a real dent in our demand for fossil fuels.

It can grow in poor conditions – but some scientists say that the amount of oil produced under such condition will also be poor.

So while the farmers of this small village continue to exploit this new source of income – the status of jatropha as wonder biofuel – remains uncertain.

Africa Business Report is a monthly programme on BBC World News. The next programme will be on Saturday, 12 December at 0230 GMT and 2230 GMT, and on Sunday, 13 December at 1330 GMT as well as 2130 GMT.

BioVentures Brasil will receive $1 million from the InterAmerican Development Bank for a pilot project on about seven hectares in Bahia, northeastern Brazil, where it plans to develop a plantation on 20,000 hectares of mostly abandoned cattle-grazing land.

The pilot will determine whether the species can adapt to the area’s soil and climate, as well as other factors like how best to work with local communities.

BioVentures is backed by EuroVentures, a London- and Sao Paulo-based investment firm active in Brazilian energy projects, and Grupo Vigna Brasil, a Brazilian agribusiness consultancy.

BioVentures hopes to eventually raise about $150 million from investment firms that specialise in agribusiness, and from strategic investors in power production or fuel distribution and refining.

The company aims to sell the fuel to Brazilian and European firms, which would use the jatropha oil to generate electric power.

Jatropha is one of a number of plant sources for biofuel that is showing promise as a crop that can be cultivated without competing with land used for food production. A hardy plant resistant to pests and drought, jatropha grows well in marginal soil and produces oil-rich pods. Along with salicornia, which grows in saltwater, and algae grown in vertical farming units, jatropha is currently being touted as one of the most promising sources for plant-based biofuels. In particular, oil made from jatropha seems particularly well adapted for use in jet biofuel.

As we’ve reported previously, jet biofuel is expected to be approved for commercial use by the end of 2010, and the groundwork is already being laid for its distribution in sizeable quantities. BioJet Corp. out of Santa Barbara, CA, for example, has already delivered 4 million barrels of jatropha-oil jet biofuel to a major aviation broker and plans to distribute 30 million barrels annually. Also, the the International Air Transport Association (IATA), an association which represents 93 percent of all scheduled flights internationally, claims that the use of jet biofuel could bring about an 80 percent reduction in the carbon dioxide emissions caused by air travel.

If jatropha proves to be as viable as it is expected to be, Valero’s new investment will be a wise one, indeed. The feasibility of cultivating the plant on such a large scale, however, has yet to be determined. Some early reports from growers indicate that yields may not be as high as predicted. Nevertheless, the potential commercial value of biofuels both to producers, and to consumers—who could reap the benefits of lower prices for petroleum products in the short term and lower costs of energy from a renewable source in the long term—remains clear.

Mission announced yesterday that it had signed a binding five-year deal to provide a subsidiary of Valero with up to 200,000 tonnes of biodiesel annually, which Valero could double if it chose to.

The agreement also allows Valero’s subsidiary, Valero Marketing & Supply Co, the right to buy 25 per cent of Mission at 45c per share.

The figure is a 61 per cent premium to the current 30-day volume weighted average price, Mission said in a statement.

Shares in Mission rocketed up following the news and closed up 7.5c, or 21.13 per cent, at 43c on the day’s trading.

“We are delighted to be supplying Valero and look forward to expanding our commercial relationship,” said Mission managing director Nathan Mahalingam.

“The increasing demand for biodiesel — driven by the Renewable Fuels Standard and coupled with this long-term supply agreement — solidifies the United States as a key market for Mission going forward,” Mr Mahaligam said.

The Renewable Fuels Standard is a US policy that mandates renewable fuel levels.

Under the terms of the equity deal, Mission will issue Valero two tranches of warrants to purchase common stock, subject to shareholder approval.

The Australian company said the first shipment under the supply agreement was expected to occur in the second quarter of next year.

IOC has purchased 32,000 hectares of land in the Chhattisgarh and Madhya Pradesh states in central India.To date, the firm has planted 1,000 hectares of jatropha and plans to plant a further 10,000 hectares by the end of the year.

Last month, Toyota Motor affiliate Toyota Tsusho announced plans begin growing jatropha in Japan this year. In order to make the venture profitable, the firm says it must increase the plant’s oil yield. It aims to achieve this within five years.