Jatoil's biofuel takes off

RENEWABLE energy company Jatoil’s coffers are expected to receive a boost after the company sold its first commercial quantity of crude jatropha oil several months earlier than expected.
Jatoil's biofuel takes off Jatoil's biofuel takes off Jatoil's biofuel takes off Jatoil's biofuel takes off Jatoil's biofuel takes off

The oil was sourced from the company's recently purchased joint venture operations in central Java with the initial shipment of 10 tonnes to be used as feedstock for aviation fuel.

In February, Jatoil announced its investment in central Java with European-backed biofuel producer PT Waterland International. Waterland International holds existing jatropha crops covering 2000 hectares in central Java.

The first sale comes under a new four-year offtake agreement with Waterland covering all crude jatropha oil produced from the first 1000 hectares of the project. All sales under the offtake are destined for the aviation industry.

Jatoil chief executive officer Phil Hodgson said the first biofuel production was a significant event for the company.

"Not only have we made our first sale of crude jatropha oil, but it is in advance of the timetable that we set out for ourselves early this year.

"We expect that further harvesting this year will allow us to market larger quantities of crude jatropha oil at more frequent intervals."

Hodgson said output of around 700t is expected in the first 12-18 months from the first stage of operations, rising to more than double that within three years.

Jatoil was up a massive 42.86% to 3c in morning trade.

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