What is Jatropha Curcas?

Jatropha Curcas, also known by its more common name of Physic Nut, is a toxic fruit commonly found in Myanmar, India, many parts of Africa and South America.

It is a drought resistant perennial plant. The oil extracted from its seeds is an alternative feedstock for bio-diesel, a form of bio-fuel. The plant can grow at a very fast rate even under harsh soil and weather conditions from stem cuttings or seeds. Seed production can take place within two years of planting and will continue for up to 50 years.


Jatropha seeds


Jatropha at fruiting stage

Jatropha plant used in the
production of bio-fuel


Why Jatropha Curcas?

Jatropha Curcas is seen by many to be the perfect biodiesel crop. It can be grown anywhere and in very poor soils, it actually generates top soil as it goes. It is also drought and pest resilient, and has seeds with up to 40% oil content, which can be used for any diesel engine without modification.

Jatropha absorbs large amounts of carbon dioxide from the atmosphere and therefore earns carbon credits.The discovery of Jatropha Curcas as a substitute main feed stock for bio-diesel has helped solved the many problems associated with diverting a food based feed stock such as oil palm to the energy sector and has caught the interest and imagination of the industry in a major way.

The increasing global bio-diesel demand

Bio-diesel is a non-toxic, biodegradable and renewable fuel. It helps to reduce serious air pollutants such as particulates, carbon monoxides, hydrocarbons and air toxic.

With the depletion of primary fuels and the rising worldwide demand for cleaner burning fuel, the global market for bio-diesel is poised for explosive growth in the next ten years. In the USA, the market for biodiesel is growing at an alarming rate – from 25 million gallons per year in 2004 to surpassing 100 million gallons by 2006. In Europe, biodiesel represents 2% of total transportation consumption and is expected to reach 6% by 2010. In China, India, Brazil and Europe, import dependency, along with economic and environmental security concerns are giving birth to new government targets, aimed at reducing petroleum imports and increasing the consumption and production of renewable fuels. Europe, Brazil, China and India each have targets to replace from 5% to 20% of total diesel with biodiesel.

 


Jatropha Plantation

 
Jatropha Oil

The strategic move towards bio-diesel

In face of the recent challenges posed on the real estate sector in Myanmar, it is Yoma’s concerted intention to broaden our income generating sources from new projects in the two selected business sectors – real estate development and bio-fuel plantations, in more than one country, so as to attain the desired level of diversification and to enable us to withstand any temporary fluctuation in a given country.

Moving into the future, rising environmental concerns and a global demand for cleaner sources of fuel are driving a potential demand for bio-diesel. This brings about a need for alternative feed stock for producing bio-fuel, one of which is Jatropha Curcas.


The Jatropha Curcas Initiative – A potential bio-diesel feedstock

Amongst the many initiatives to address the pressing issue of environmental degradation is the promulgation of laws by respective governments to impose a minimum bio-fuel content level in transport fuel by the year 2008 onwards. The acute need for bio-gasoline and bio-diesel has become an urgent and imperative issue on the agenda of most governments in the world.

Worldwide there are many bio-diesel refineries under construction or in operation, most of which will be seeking jatropha oil as the main feed stock supply over the years to come. The government of Myanmar has announced publicly its national program to plant 7 million acres of Jatropha Curcas over the next decade. It has also achieved initial success in planting more than a million acres of Jatropha over the past few years. Through its associated companies in Myanmar, YSH has been able to tap into this unique opportunity.

On 22 February 2007, YSH entered into a conditional sales and purchase agreement to acquire 52.86% of Plantation Resources Pte Ltd (“PRPL”) a Singapore registered company possessing the rights to manage and market the produce from a 100,000 acre Jatropha Curcas plantation in the Ayerwaddy Division of Myanmar, known as the Maw Tin Estate. This proposed acquisition is a strategic initiative to produce critical upstream feedstock to meet the tremendous demand for bio-diesel in the ensuing years to come and has laid the groundwork for YSH to become a major player in the plantation of Jatropha Curcas.

The resolution was passed at an Extraordinary General Meeting conducted on 10 September 2007.

 

The Jatropha Curcas Plantation

 
 

 

Maw Tin Estate

In tandem with the strategic move into bio-diesel, Plantation Resources Pte Ltd announced on 5 June 2007 a partnership with UK-based consultants Syndicatum Carbon Capital, a developer and technology provider of greenhouse gas abatement projects across various continents. The move is aimed at exploring Carbon Credit Projects in Myanmar, as part of Clean Development Mechanism.

 

 






 
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