Getco invests in jatropha-based biodiesel in Peru

11 January 2008 22:25  [Source: ICIS news]

CARACAS (ICIS news)--Peru's emerging biofuels industry got another boost Friday after Global Energy Trading (Getco) announced it intends to invest over $10 million to produce biodiesel from jatropha, official sources said on Friday.

Jatropha is a tropical tree that can grow on marginal land, such as deforested fields, without the use of pesticides, according to Getco's website. Industry sources have told ICIS news that South America could become a viable area for widescale jatropha planting in the future, helping to alleviate criticism in the region that biodiesel production jacks up food prices.

Getco President James Fanning said his company seeks to cultivate 10,000 hectares of jatropha and build a plant capable of producing 16,000 liters/hectare a year, according to state-run Andean News Agency.

The final product would be destined for the local market but the company said its longer-term plans include two or three similar projects in the Peruvian jungle that would produce fuels for export.

On top of producing clean fuels and having decent oil yields, jatropha also has the advantage of not being part of the food chain, such as sugar cane or palm oil, Fanning said. As such, it could provide a viable alternative to soy-based biodiesel, which has come under fire in South America and around the world for inflating food prices.

Officials at Getco were not available for comment.

Peru has lately attracted sugar and palm oil producers to invest millions into developing biofuel operations.

Biodiesel, which will have to be blended into the local diesel supply by 2009, should appear on the Peruvian market next month if Heaven Petroleum Co. starts up its plant by Jan. 31, as is currently expected.

Though Getco is the first to announce plans to build a jatropha plant in the Andean nation, it isn't the only company to imagine fields of the oily crop growing in South America. 

Earlier this week, Bayer CropScience, Archer Daniels Midland (ADM) and automaker Daimler signed an agreement to develop jatropha in tropical countries throughout South America, Asia, and Africa.

Bookmark Simon Robinson's Big Biofuels Blog for some independent thinking on biofuels.

By: Jasmina Kelemen
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