Jatoil to start producing jatropha oil
Renewable energy company Jatoil Limited plans to produce its first commercial quantities of crude jatropha oil this year, a year ahead of previous expectations, after signing binding agreements to set up a new JV in Indonesia. The agreements provide for the acquisition of existing jatropha crops in Central Java.
The agreement was signed with PT Waterland International, a European-backed biofuel producer. The project involves Jatoil injecting up to US$600,000 for a 70% stake in a JV which covers 2,000 hectares of land in Central Java. Half of the land already holds jatropha trees, which are expected to bear their first commercial crop in 2010. The JV, named PT Jatoil Waterland, also plans to expand the jatropha plantation by a further 10,000 hectares, of which 1,000 hectares contains mature jatropha trees that are currently producing biofuel.