August 06, 2007
Hot on the heels of the announcement of Australia's first bio-diesel export by Natural Fuel, the company says it is looking at other potential raw materials for its product.
Dan Wallwork, Natural's Treasury and Risk Manager, says the company is investigating using fruit of the Jatropha bush, as it offers a number of benefits over other feedstocks.
"We have looked at Jatropha, and it seems quite attractive, when compared to some of the edible oils," Wallwork says.
"We are looking at it because it is non-edible, because it only has that industrial use, the price will always be cheaper than edible oils, which have more than one use."
Jatropha hit the headlines last week when BP and UK company D1 Oils announced a $76 million joint venture into processing nuts from the bush into bio-diesel.
It is widely recognised as one of the most efficient raw materials for bio-diesel, with yields of between 35 and 40 percent.
Wallwork says the company's Managing Director Richard Selwood and Deputy MD Michael Pixley would be meeting with the company that helped organise the BP/D1 Oils joint venture while they were overseas this week.
"I don't think we will have Jatropha plantations here in Australia, as Jatropha is pest-declared in West Australia," he says.
"I think the rural lobby groups will keep it out as it is poisonous to cattle, as well as people."
Despite this, Wallwork says Natural Fuel is investigating another Indian tree, Pongamia, which is also a nut-bearing tree, with a trial crop under way.
"We also have a memorandum of understanding with Energy Crop Australia to grow and crush soy, they will sell the oil to us for conversion, we have agreed a price to guarantee stability."
