Aussie firm to enter C. Java biofuel venture with Waterland

Australian-listed renewable energy company Jatoil Limited has signed a Memorandum of Understanding (MOU) with PT Waterland International allowing the latter to acquire a stake in the former's biofuel project in Central Java.

Under the MOU, Jatoil may buy a controlling interest in 1,000-2,000 hectares of established jatropha farming venture in Central Java, with plans for considerable expansion and short-term revenue generation, the company said on Tuesday.

?Jatoil has been carefully looking to use its cash reserves to buy into world-class, sustainable energy projects that can meet stringent financial hurdles and provide sustainable returns to investors,? Chief Executive Officer Phil Hodgson said. ?If our due diligence goes well, we expect completion of the deal during the next couple of months.?

Waterland is a Dutch-Indonesian consortium that has developed extensive jatropha operations in central Java to supply European power markets. It has 12,000 hectares of oil producing farms and a further 60,000 hectares that have been planted during the past 1-2 years. It manages an integrated operation that derives revenues from a number of sources including jatropha oil, waste seedcake, fertiliser, and inter-cropping. (denny)