Japan-Myanmar JV Established to Produce Biofuel from Tropical Plant

http://techon.nikkeibp.co.jp/english/NEWS_EN/20090302/166524/

Mar 3, 2009 17:05
Chiho Matsuda, Nikkei Monozukuri
Printer-Friendlydigg This!E-Mail Articledel.icio.usJapan Bio Energy Development Corp (JBEDC) announced Feb 27, 2009, that it will establish a joint venture with a Myanmar private company for biofuel development.

The new company, "Japan-Myanmar Green Energy," aims to export 5,000t of seeds in 2009 and start operating its first oil mill plant in 2010. Also, it plans to distribute and export Jatropha-derived fuel in addition to its seeds.

Jatropha, a tropical deciduous shrub, is resistant to droughts and grows in oligotrophic soil. The oil content of its seed is 30 to 35% (oil production rate is approximately 25%). Unrefined Jatropha oil has properties equivalent to those of rape seed oil when used as fuel. And it can be used as fuel for modified agricultural machinery and generators without being further processed.




In addition, highly refined Jatropha oil can be used in aircrafts, passenger cars, ships and power generators. A ton of unrefined Jatropha oil generates about 3t less CO2 than petroleum of the same amount, according to JBEDC. It has already been confirmed that the Jatropha oil can be used as an alternative to diesel fuel, and a flight experiment with the oil has already been conducted.

Myanmar is the world's largest producer of Jatropha seeds. Its government has been promoting the cultivation of Jatropha since 2006 as one of its national projects. And the growing area reached about two million hectares at the end of 2008, which is reportedly more than 90% of the world's Jatropha acreage.

However, the country has been lagging behind other countries in fuel production, which ranges from harvesting seeds to refining oil, marketing, and developing regulations and standards.

Under such circumstances, JBEDC signed an agreement with the Myanmar government in December 2006 in respect to comprehensive support for the establishment of a Jatropha fuel supply chain and cooperation on the implementation of a biofuel project. In line with this agreement, JBEDC was given priority on production, distribution and export of Jatropha seeds and fuel.

After that, JBEDC conducted on-site investigations and seminars for concerned parties jointly with Myanmar's Ministry of Agriculture and Irrigation.

In December 2008, they reached an agreement that purchasing and sales of seeds as well as pressing and refining of oil will be carried out as a private business by a local company and JBEDC and that technology development and training as well as establishment of policies, regulations and standards will be conducted jointly by the Ministry of Agriculture and Irrigation and JBEDC.

Based on this agreement, JBEDC and the local company signed a contract Feb 4, 2009, on the establishment of the joint venture.

The joint venture is capitalized at US$1.5 million and is financed by JBEDC and the local company at a ratio of 60% to 40%. The name of the local company "can't be disclosed under the agreement," according to the Japan Development Institute, the parent company of JBEDC.