29/01/2009 (The Star Online) - JATROPHA, previously a neglected oilseed crop, has become the latest rage among global alternative energy corporations, given its tremendous potential as a viable and “cheapest” feedstock for biodiesel production.

Major investments are pouring into jatropha plantations and biodiesel projects across China, India, South-East Asia, southern Africa, as well as Central and South America.

The drought-resistant jatropha plant and its biofuel potential have presented an exciting opportunity for investment in low-cost land that is not currently arable for most crops or suitable for other agricultural development.

Interestingly, since the jatropha fruit is non-edible, using it to produce biodiesel would not affect or be affected by demand for food, a major problem that is constantly faced by the palm oil-based biodiesel and corn “ethanol” industries.

The upshot is that jatropha oil should be a cheaper alternative than the popular “edible” fuels made from rapeseed, corn and palm oil.

To date, the big corporations that lead large-scale production globally include BP and D1 Oils, which announced a US$160mil joint venture with a target to plant an estimated total of 405,000ha in India, South-East Asia, southern Africa, and Central and South America.

Others include Vietnam-based GreenEnergy Ltd with over US$20mil of successful placements, both private and public, for jatropha-specific ventures; Australia-based Mission Biofuels which owns about 8,903ha of jatropha plantations in Malaysia, and South Korea-based Eco Solutions with plantations in the Philippines.

Given its high commercial value, one question that comes to mind is whether jatropha is a suitable diversification for oil palm planters and smallholders in Malaysia.

The answer is yes! Jatropha can actually help local planters cushion themselves against the volatility in crude palm oil prices, while smallholders in the rural areas can obtain a new source of income.

However, since jatropha plantation is in its nascent stage in Malaysia, planters, especially those in Sabah and Sarawak who have cultivating the crop, claim that the Government still has yet to fully endorse the significance of jatropha.

The Chinese government offers subsidies for jatropha crops in the southern provinces while in the Philippines, banks support farmers with a loan of US$972 per ha of jatropha planted.

Perhaps it will be good for existing local “jatro-preneurs” and “jatro-preneurs” wannabes to drop in at the JatrophaWorld 2009 convention to be held in Kuala Lumpur in the middle of next month, which is one of the highly attended jatropha gatherings in the world.

Important highlights include Biotins Energia’s experience in operating large-scale jatropha planting and commercialisation of jatropha biodiesel production in Brazil as well as Myanmar Agri-Tech, dubbed as the largest jatropha producer and supplier in Asia, that manages 40,500ha of jatropha plantations.