BP and D1 Oils Plc are forming a joint venture called to accelerate the planting of Jatropha curcas – a drought-resistant, inedible oilseed-bearing tree. This tree does not compete with food crops for good agricultural land or impact the rainforest and will be used to make more sustainable biodiesel feedstock available on a larger scale. Under the terms of the agreement, BP and D1 Oils will invest around USD 160 million over the next five years with D1 Oils’ share of the investment cost being partly funded by the inclusion of their 172,000 hectares of existing plantations in India, Southern Africa and South East Asia. BP will have exclusive access to the elite Jatropha seedlings produced through D1 Oils’ plant science program.
The 50-50 joint vernture will focus on Jatropha cultivation in South East Asia, Southern Africa, Central and South America and India. It is anticipated that some 1-million hectares will be planted over the next four years, with an estimated 300,000 hectares/yr thereafter.
Jatropha oil 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 anticipated regulatory led demand for biodiesel of around 11 million m.t./yr from 2010.
