Monday May 1, 2006
1/5/06 (The Star)  -  WHILE the focus on palm-based biodiesel remains intact, the National Smallholders Association (NASH) has formed a joint venture with an Indian company to set up Malaysia's first Jetropha Curcus (JC)-based biodiesel processing and refining plant.

The plant, slated for operation by year-end, will be set up in Mersing, Johor.

NASH president Datuk Mazlan Jamaludin said the Indian joint-venture partner had agreed to invest RM30mil to RM40mil while NASH would initially offer 1,000ha to 1,500ha to be developed into JC plantation.

“This NASH's pilot plant will have a maximum production capacity of 65,000 tonnes per year and the JC-based biodiesel will be exported, mainly to India,” he told StarBiz. 

JC, better known in Malaysia as Jarak Pagar or Jarak Belanda, is a hardy perennial plant that requires minimal supervision and can be grown in most idle or marginal areas. 

 
Datuk Mazlan Jamaludin
Mazlan believes that JC plantation is the best answer to NASH smallholders' plight to broaden their income scope, after oil palm and rubber plantation. 

JC is also a European Union-compliant feedstock for biodiesel production. (A company called D1Oils Plc is a major promoter and investor of this crop).

“JC-based biodiesel is a commercially viable product with unlimited market prospect,” Mazlan said.

In the near future, the commodity should benefit from the increase in Asian biofuel requirements as well as higher feedstock demand from EU, he added.

NASH has over 100,000 members, who are mostly independent smallholders, with an estimated one million hectares of land.

“We believe our members will start offering their land for JC planting soon in view of its lucrative prospects,” he added.

It is estimated that 15,000ha of planted JC would be needed for the production of 65,000 tonnes of JC biodiesel per year. 

Under Malaysia's soil and climate, the JC plant could yield five tonnes of biodiesel oil per hectare and could reach seven to 10 tonnes in five years.

Mazlan said NASH planned to seek help from the Agriculture Ministry to use idle land and poor soil in Perlis, Trengganu, Johor, Perak and Pahang for planting new cash crops like JC.

“NASH plans to fully exploit the value of its members' idle land as part of its efforts to revolutionise and maximise the earnings of independent smallholders,” he added

He said NASH was also proposing to the Government to set up a professional co-operative body to monitor activities of JC plantation, similar to Mardec's role in rubber.

He said NASH hoped to co-operate with Petronas to market and distribute the JC-based biodiesel.