Valero Adds Jatropha to Its Biofuel Business
The seeds of the Jatropha curcas plant are used to make biofuel. (image: sustainabledesignupdate.com)
Building on the success of their ethanol program, which posted profits of 120 million over two quarters this year, Valero recently announced plans to add fuel made from the jatropha plant to their roster of biofuels. Indeed, biofuel is one of the only areas of Valero’s business that is growing, as crude prices and low demand have reduced total profits and forced the closure of the company’s largest refinery in Delaware. The New York Times’ Green Inc. blog reported on Friday that Valero has signed a five-year deal with an Australian refiner, Mission New Energy, to supply the oil giant with 60 million gallons of jatropha-derived biodiesel per year.
Jatropha is one of a number of plant sources for biofuel that is showing promise as a crop that can be cultivated without competing with land used for food production. A hardy plant resistant to pests and drought, jatropha grows well in marginal soil and produces oil-rich pods. Along with salicornia, which grows in saltwater, and algae grown in vertical farming units, jatropha is currently being touted as one of the most promising sources for plant-based biofuels. In particular, oil made from jatropha seems particularly well adapted for use in jet biofuel.
As we’ve reported previously, jet biofuel is expected to be approved for commercial use by the end of 2010, and the groundwork is already being laid for its distribution in sizeable quantities. BioJet Corp. out of Santa Barbara, CA, for example, has already delivered 4 million barrels of jatropha-oil jet biofuel to a major aviation broker and plans to distribute 30 million barrels annually. Also, the the International Air Transport Association (IATA), an association which represents 93 percent of all scheduled flights internationally, claims that the use of jet biofuel could bring about an 80 percent reduction in the carbon dioxide emissions caused by air travel.
If jatropha proves to be as viable as it is expected to be, Valero’s new investment will be a wise one, indeed. The feasibility of cultivating the plant on such a large scale, however, has yet to be determined. Some early reports from growers indicate that yields may not be as high as predicted. Nevertheless, the potential commercial value of biofuels both to producers, and to consumers—who could reap the benefits of lower prices for petroleum products in the short term and lower costs of energy from a renewable source in the long term—remains clear.
Genetic Engineering Renews Jatropha’s Promise as Biofuel Source | HeatingOil.com says: says:
[...] future source of biofuel. The inedible plant received votes of confidence from major corporations Valero and Toyota in recent months, in the form of big investments. In practice, however, jatropha has [...]
Casey Verdant says: says:
Valero’s diversification efforts for biofuels is impressive. Moving into the use of jatropha is a good sign they’re making the transition from fossil fuels to alternative fuels. If you’re interested in biofuels and alternative energies, check out http://www.greencollareconomy.com. It has hundreds of case studies on emerging green technology. It’s also the largest b2b green directory on the web.