Australia, Biodiesel, Jatropha

Natural Fuel Signs LOI for Jatropha Oil Off-take Agreement

October 16, 2007 (Company Release) Natural Fuel Limited is pleased to announce it has signed a Letter of Intent for a Long-term Off-take Agreement with GEM BioFuels Plc (GEM) for the supply of crude jatropha oil as a feedstock for its Singapore biodiesel facility. The final Agreement is due for completion following GEM’s expected listing on the London AIM. The Off-take Agreement will allow for the supply of up to 55% of GEM’s crude jatropha oil production in Madagascar to NFL at a free on board delivery price of US$500 per tonne. NFL will also subscribe £650,000 to secure a 3.9% equity position in GEM as part of its AIM listing scheduled for completion in October.

NFL’s biodiesel plants are designed to use a broad variety of virgin vegetable oils giving it significant flexibility in feedstock sourcing and blending to produce biodiesel to international specifications.

Jatropha oil produces high quality biodiesel with superior cold flow properties, allowing NFL to blend it with palm oil and achieve cool weather biodiesel.

Mr Earl McConchie, NFL Chief Executive Officer said: “This partnership will allow NFL to lock in a substantial long term supply of crude jatropha oil at a very favourable price and represents the first key step in our ongoing feedstock strategy.

“As the amount of jatropha oil being supplied by GEM increases each year, the underlying strategy and pricing will deliver greater operating profits to NFL. The use of jatropha oil is consistent with our strategy to use only sustainably-produced vegetable oils,” Mr McConchie said.

Beginning in early 2009, GEM will initially supply 2.5% of NFL’s Singapore facility production requirements, with supply increasing year on year as its jatropha plantation program develops.

Mr Paul Benetti, GEM Chief Executive Officer said: “At the maturity of GEM’s current plantation program in 2013, the Agreement will secure up to 25% of NFL’s production requirements in Singapore.

“GEM’s existing land holding for jatropha plantations in Madagascar is in excess of 450,000 hectares. When fully mature, these plantations could provide up to 50% of NFL’s Singapore feedstock requirements,” he said.

Further details of the Off-take Agreement will be supplied upon formal completion of the contract.

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7 thoughts on “Natural Fuel Signs LOI for Jatropha Oil Off-take Agreement

  1. It is my great pleasure to introduce my self here
    I M Aadrsh Tiwari working as aProject Officer
    (Cultivation & Evaluation of Petro-Crops [Jatropha & Karanj ) as well as I M doing Ph. D. on Potential of Jatropha curcus for rehabilitation of degraded lands with special reference to Bilaspur district. I got some out standing results in this field I M working research and cultivation of Jatropha crop since last 4 years. I assure u sir I shall help allot your company if I got the chance to proof my self. I M waiting prompt reply from your side.
    Thanking You with regards.

  2. We are developing the project of jatropha plantation in Lao,cambodia and Thailand.
    We will be pleased to come into any engagement of to have the off take contarct to purchase our future available CJO(Crude Jatopha Oil)
    Any interesting parties in consuming CJO as feed stock for BDF could contact us at phone +66 951095555 or e-mail Chumroen@bioenergy-development.com

  3. Setting the prices of Crude Jatropha Oil at usd 500 per metric tons would not be commercial viable .

    Considering teh real situation as teh practioner in jatropha cultivation.
    it is impossible to get the cost of CJO at this price.

    The realistic low productivity yield + the heavy input of needed cultivation activities of Proper land preparation irrigation +fertilization + prunning and high labor intensive crop in harvesting the unsynchronized fruiting.
    The seed cost from the plantation cannot be cheap.

    Regarding to the CJO processing part .The seed to oil conversion ration is 4 to 1 (With high effciency equipment of screw press).

    At the CJO price at usd 500 which translate into the seed price at maximum usd 125 pmt.

    There is no way that the Jatropha plantation will be commercially viable.

  4. chumroen benchavitvilai says:

    As there are so many eebrgy crops which could genenrate much more revenue than planting jatropha.
    it is almost imposisble to serve the price of Crude jatropha oil at such low price level at usd 500 pmt which is the lowest among all otehr vegetable oil as the candidates for the energy purpose.

    Considering the relatively low and unsecured of the productivity yile to plant Jatropha in commercial scale.
    This eenrgy crop has been discussed and refered in the past many years without nay forward steps.

    It is the time to look at the real motivating prices to persuade the farmer to plant jatropha in commecial scale.

    If it would continue with the assumption of low price .
    There will be no way Jatro would become the dominat feed stock for eenrgy purpose.

  5. Chumroen Benchavutviali says:

    Are there any serious and tangible result of the supply of teh Jatropha Oil as claimed by both the supplier and the off taker.
    it is not possible at such low price level of Crude Jatropha oil.

    The low productivity yield of the Jatropha crops cannot allow the price of Crude Jatropha Oil to be at such low level and competitive with any other bio plant oil.

    it is doubtfully that the energy crop of Jatropha would eb economical viable for the future.

  6. Ismael Razdan says:

    there is one good company from India , Called Sundex, doing a lot of research on biodiesel production process.
    you may contact them for if you need technology for the vegetable oil processing and biodiesel manufacturing process.
    Regards,
    Ismael.
    Cote D’Ivoire

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