E-RENOVA interviewed the vice president of operations of an American company currently investing in Jatropha plantations in Central America as a strategy to position itself in the global biofuels market.
SG Biofuels’s Jatropha plantations in Central America are part of a strategy to position itself in the global biofuels market, which it envisions as a high-growth one, especially the jet fuels market. That is the reason why E-RENOVA interviewed via e-mail Greg Simon-Miró, Vice President of Operations of theSan Diego USA-based firm, which was established in 2006. The executive, who is both a citizen of Panama and the United States, claims it aspires to “double” the plant yield in the next few years. He explained that even if his company is assessing some areas in northern Argentina for plantations --as is local government-run INTA and other technicians--, “not all marginal land is created equal and the oil yield is enhanced significantly when planted in the proper micro-climate and soil conditions”. Here is what Mr. Simon-Miró had to say:
Why did SG Biofuels decide to focus on Jatropha for fuels made from vegetables? Did you also study options in that field such as soy, sugarcane or corn?
- First, it is important to clarify that Jatropha is not a vegetable – it is a non-edible crop that does not compete with food supplies, because this crop grows well where food crops do not grow.
Our team of scientists analyzed a broad range of feedstocks including, among others, soy, palm, rapeseed and camelina. Following three years of research, we identified Jatropha as the ideal biofuel crop for a variety of reasons.
- - Jatropha can be effectively grown or cultivated on abandoned land that is considered unsuitable for food crops.
- - Unlike many other alternatives, Jatropha is a non-edible feedstock that cannot enter the food chain.
- - Production costs are low – SG Biofuels can sustainably produce Jatropha oil at a more competitive cost than other feedstocks including palm and soy.
- In recent independent testing, SG Biofuels’ Central American Jatropha out performed palm, soy and Jatropha from India on two differentiating criteria: low temperature performance and long term storage stability.
- - Jatropha is an undomesticated crop with tremendous upside – its current yield is between 500 and 700 gallons per hectare.
- - Jatropha oil produced by SG Biofuels has been independently evaluated for its biodiesel qualities and verified to be a clean, stable source of fuel for biodiesel that meets or exceeds strict European specifications.
In the next five or ten years, in what areas of the world do you think there will be higher biofuels use? How much of it do you think it will be based on jatropha products?
- We’re seeing the market for biofuels rapidly expanding around the world. Increasing pressures from consumers, government leaders and environmental groups regarding climate change, energy security and the volatility of oil prices and reserves have created tremendous demand for alternative, renewable fuels. In fact, the market for biofuels is expected to reach $247 billion by 2020 (Pike Research, June 2009).
We see the use of biofuels expanding not only in the United Status, but throughout Latin America as countries realize that biofuels can not only contribute to the reduction of greenhouse gases, but also create jobs, improve economies and help achieve the goal of energy independence. Especially in Latin America, where ideal growing conditions and a large amount of appropriate and available land can be found, Jatropha can provide a significant volume of low-cost oil within the next five years.
Do you intend to get your Jatropha crops only from plantations in Latin America or include African or Indian fields too? In what countries are you currently managing plantations?
- Currently, we’re focusing our efforts on Latin America for several reasons. Jatropha is native to a region often referred to as Meso-America, stretching from southern Mexico south into Guatemala and Honduras. It is a subtropical plant that grows best in the latitudes just north and south of the equator.
According to the Inter-American Development Bank, the abundance of non-arable land and the existence of optimal climatic conditions in Latin America make it well-suited to become a leading center in a global biofuels trade. In addition, Latin American economies continue to build strong agricultural sectors and improve industrial infrastructure that will assist the growth of the agro-energy sector.
We are looking at opportunities in other parts of the world as well. And we are continuing our work to expand the regions in which Jatropha will thrive. We have already identified several strains of Jatropha that have proven capable of thriving in higher, colder elevations than was previously thought possible. We are continuing to test and improve those strains for increased yield and durability.
The northern portion of Argentina has subtropical weather, have you ever thought of planting Jatropha there?
- Argentina could be a very promising market for the production of Jatropha and we’re exploring opportunities there, as well as a number of other countries. It is important to remember that a subtropical climate is just one factor in determining proper growing conditions for the crop. The plant is well-known to grow on marginal land that is considered undesirable for food crops; however, our experience demonstrates that not all marginal land is created equal and the oil yield is enhanced significantly when planted in the proper micro-climate and soil conditions. Our plantation strategy emphasizes the identification of proper soil and climate conditions, as well as proper agronomic practices to enhance productivity.
Please mention the main features of your GRC laboratory. To develop cold resistant breeds of Jatropha is its main goal or it has are others too?
- SG Biofuels has assembled the largest, most genetically diverse library of Jatropha genetic material, contained within our Genetic Resource Center (the GRC). Utilizing our vast genetic database, we’re pushing the limits of Jatropha through our science, genetics and breeding program at research sites in San Diego, California and several Latin American countries. Cold-tolerance is just one trait we’re addressing. We’re also focused on enhancing yield, drought-tolerance and improved agronomic practices. Based on early returns from our genetic research, the strength of our genetic material, as well as experience with other similar, undomesticated crops, we are confident we can double the yield of Jatropha within the next few years
Are there any perspectives of biojet fuel to be available in other countries than USA in the mid term?
- The aviation industry has strongly validated the use of biofuels – and specifically Jatropha – as an effective, viable and necessary way to reduce greenhouse gas emissions. Tests conducted by Air New Zealand, Japan Airlines and Continental Airlines have all indicated that biofuel blends, including Jatropha, can actually perform better than traditional aviation fuel.
It is expected that the international standards board could approve the use of plant-based biofuels as ‘jet A-1’ fuels within the next year. Planes are already certified to fly on anything considered ‘jet A-1’ fuel, so we could realistically see biofuels adopted internationally within the aviation industry during 2010.
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