jatropha curcas and bio-diesel development in madagascar
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Jatropha Curcas and Bio-diesel Development in Madagascar
Outline• Definition of bio-diesel
• Agricultural techniques and plantations of Jatropha Curcas
• Oil extraction and bio-diesel production
• Markets and prices
• Bio-diesel development models
• Legal and regulatory framework
• Economic and environmental impacts
• Conclusions and recommendations
What is BIO-DIESEL?
• Bio-diesel is diesel produced from vegetal oil
• The process is a well known technique called «Trans-esterification». It is now profitable because of high prices of fossil oil.
• Bio-diesel can totally replace fossil diesel, or can be mixed with it.
• Vegetal oil from the seeds of Jatropha Curcas is among the best source of bio-diesel.
Why Jatropha Curcas?
• Shrubs (2 to 5 meters) growing on poor soils, in dry to humid areas
• Low cost, easy to grow, perennial plant (40 years).
• First harvest after 18 months• Produces cheap, but toxic,
vegetal oil: no need of subsidies to produce bio-diesel
• Farmers can make $200 to 250$/ha/year on marginal lands
• No competition with food or cash crops
Madagascar
Pictures of Jatropha Curcas
TECHNIQUE OF PLANTINGSeeds
NURSERY
Transplantation
Pruning-Weeding
Harvest
Drying -Sorting
Packaging-Storage
Young plant in pot
PLANTATIONHole digging
Direct sowing in pot
3kg/ha seeds Cost of nursery:
$60/ha
2500 plants/haCost of plantation:
$70/ha
Yield: At least 5T/ha
Harvest : Feb to August
PROCEDE D’EXTRACTION
Graines
Décortiquage-Broyage
Chauffage
Trituration-Pression
Filtration
RAFFINAGE
BIODIESEL
Huile brute
Vapeur d’eau-humidification
Tourteau
OIL EXTRACTION – PRODUCTION OF BIODIESEL
Yield: 30%
Seeds
Crushing
HeatingSteam
Expelling
Seed cake Crude oil
RefineryUsed as
Fertilizer or Charcoal
D1Oils plc• UK company, listed on the London Stock Exchange; among the
world leaders in bio-diesel processing and production.• Works in the UK, Southern Africa/Madagascar, India,
Asia/Pacific and Australia/New Zealand.• Has developed a small refinery, to produce bio-diesel from
Jatropha oil that meets high quality European norms. Capacity: 8000 T/year of bio-diesel.
By-Products from Seed Cake
• Organic fertilizer with high content in Nitrogen (5%). See results of tests on rice below.
• Jatropha briquettes could be used as substitute to charcoal: early stage of research
•Biomass for electricity production.
0
1
2
3
4
5
6
T0 T1=0,5 T2=1 T3=2 T4=3
Dose de tourteau (t/ha)
Ren
dem
ent d
e pa
ddy
(t/ha
)
Rendement SRIRendement SRA
Crude Oil Market
Rural Communities: (soaps, lights). Limited impacts. Domestic soap industry: raw material, often blended
with palm oil. Larger market but problem of toxicity.
Bio-diesel Markets
• Domestic market: mandatory incorporation in fossil diesel (5% in Madagascar in 2010). This is a $15/20 million market
• International Market: An European Union directive recommends that 5.75% of all diesel consumed in Europe must come from vegetal source by 2010 . This represents a market of more than $40 billion, with heavy subsidies by European Union to bio-diesel producers. In India, 20% of the diesel market will be bio-diesel in 2020.
Prices of Fossil Oil and Bio-diesel• Assumption: Prices of bio-diesel are equal to prices of imported fossil diesel that vary depending on prices of fossil oil/barrel.
• Bio-diesel producers will buy crude Jatropha oil from farmers at a price which is approximately $200 less than the bio-diesel price.
Linkages between prices of fossil oil, fossil diesel/bio-diesel and crude Jatropha oil
Price of fossil oil/barrel
55 60 65 70 75 80
Price of bio-diesel = fossil diesel C&F
Madagascar/T
569 621 672 724 776 828
Price of crude Jatropha oil/T
350 400 450 500 550 600
Bio-diesel development ModelOutgrower Scheme
Farmers• Associations of small farmers
• Big farmers
• Private firms
Bio-diesel refiners
• For instance, the local branch of D1Oils plc.
Plantation - Extraction Refining into Biodiesel
• Provide Technical assistance
• Give seeds, plastic pots
• Fund nurseries
• Purchase crude Jatropha oil
• Grow Jatropha.
• Extract crude oil
• Follow instruction of D1
Contracts
Crude oil
Bio-diesel Development ModelOutgrower scheme
Nurseries
Plantations
Villages
M:model farm
Expellers
Refineries
Crude Jatropha oil
M
Bio-diesel Development ModelOutgrower Scheme
Challenges
• Securing land tenure.• Signing mutually profitable contracts with farmers• Financing farmer plantations.• Identifying and financing appropriate post harvest
technology (Expellers).• Setting up an efficient logistical network.
Bio-diesel Development ModelIntegrated Industrial project
• Plantations and infrastructure: $2 million for 5,000 ha.
• Industrial seed crushing unit (150 T/day): $1,5 million
• Bio-diesel refinery (8,000T/year): $4 million
• Organic fertilizer mixing and bagging plant (15,000 T/year): $200,000
• Total investments: about $8 million.
• Conditions: secured land tenure, mandatory incorporation of bio-diesel, appropriate harbor and logistical facilities, partnership with bio-diesel refiner
• Bio-fuel definition:
• Fuel from biomass (animal or vegetal origin)
Ex: Bio-diesel, bio-ethanol
• Role of Government:
• Encourage production of bio-diesel
• Determine level and starting date for mandatory incorporation in fossil diesel
• Establish quality standards and monitor competitiveness
• Provide fiscal and custom incentives for bio-diesel processors/refiners: tax holiday for 5 years, duty free import of equipment and inputs, exemption of VAT and environmental tax.
Legal and Regulatory Framework
Impacts of bio-diesel
Economic impacts– Additional income for farmers – Job creation: 250 men/day/ha– Foreign currency gains– Can attract large investments
Environmental impacts– Reduction of air pollution
• Green fuel: reduction of carbon emission• Jatropha trees absorb CO2
– Renewable resource– Soil protection, erosion control
Conclusions: How to Promote Bio-diesel
• Design and implement a broad sensitization campaign
• Train farmers and disseminate best cultural practices
• Identify best extraction technology and equipment
• Help establish productive linkages between farmers and bio-diesel producers.
• Promote research to valorize Jatropha cake as an alternative to charcoal and/or as a fertilizer.
• Work with the Government and all stakeholders to develop a conducive legal and regulatory framework
• Identify, attract and assist foreign producers/refiners of bio-diesel
WINNER support to Jatropha development
– WINNER will provide financing and technical assistance for Jatropha plantation and processing, working with farmer associations and private enterprises.
– We will be assisted by D1-BP Fuel Crops Limited, which has 220,000 ha of Jatropha curcas under cultivation in South East Asia, Africa and India.
– D1 Oils has developed a global research programme on 300 J. curcas cultivars with a Jatropha breeding station in Cape Verde and development centres in Zambia, Swaziland, India, Thailand and Indonesia.
– WINNER Interventions: Planning and evaluation phase; Cultivar improvement ; Agronomy research (nursery trials, inter-cropping, pruning, fertilization); Out-grower management systems (extension manuals, training of extension officers, etc,); dissemination of appropriate processing technology (expellers).
–
Costs of Energy in Haiti in 2003 Sources National
Consum.(MT)
% Price/T.(US $)
Value(KUS $/T)
%
Fuelwood 401,355 36 100 40,135.5 9
Charcoal 207,000 18 300 62,100.0 14
Gasoline 118,650 10 1,050 124,582.5 27
Kerosene 76,220 7 750 57,165.0 13
Diesel 321,300 29 523.6 168,232.7 37
Haiti Diesel Price Structure
Price category Cost (US$)
Price at terminal 1.9900
Fees 0.2036
Taxes 0.1809
Company margin 0.4008
Transport Cost 0.0542
Total 2.8295
Main data on Biodiesel for Haiti In Metric Tons and US Dollars
• Diesel imports (2006 estimations): about 350,000 T or 100 million gallons.
• Domestic market (2006): around $220 million • Proposed biodiesel alternative: BP20 (20%
biodiesel). • Biodiesel needed: 70.000 T or approximately 20
million gallons• Rough industrial investment (based on D1 Oils
data): around $35 million• Jatropha plantations : between 100,000 and 70,000
ha. • Cost of plantation: approximately $100/ha (cuttings)
to $300/ha (seedlings): At least $10 million• Cost of oil expellers for farmer cooperatives: about
280 units x $5,000: $1,4 million.
Next Steps
• Clearly define goals in terms of market share.
• Develop a business plan based on above goals
• Set up a Haitian company and put in place a good organization
• Start plantations during next rainy season
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