Jatenergy sells jatropha oil from Central Java to Lufthansa?s biojet flights
Thursday, September 8 2011 - 02:04 AM WIB
Jatenergy said it had sold 200 tons of crude jatropha oil at US$1000 per ton from its joint venture operations with PT Waterland International. The oil has been refined into biojet fuel for Lufthansa by the specialist energy company, Neste Oil.
CEO of Jatenergy, Phil Hodgson, said there was strong demand from airlines for biojet fuel, especially since the recent approval by the standards group ASTM International for the blending of up to 50 percent of biofuel with conventional jet fuel.
?We can?t produce enough jatropha oil at the moment to meet demand. Apart from sales to airlines such as Lufthansa, there is also interest from power generators and traditional biodiesel producers at prices linked to vegetable oils such as palm oil,? he said.
He said palm oil has priced between US$1,000-US$1,250 per ton during 2011, which is around $140-$180 per barrel. The company?s average ex-works production costs for the oil are around $460 per ton or US$65 per barrel.
Lufthansa announced in mid-July that it had commenced commercial flights between Hamburg and Frankfurt, starting a long-term test to gauge the CO2 emission reductions from the use of biojet.
The leading European airline said the six-month trial would involve one Airbus A321, which would burn a mix of 50/50 regular jet fuel and biojet. The trial was expected to reduce CO2 emissions by up to 1500 tons.
Lufthansa executives have visited Jatenergy?s jatropha plantations in Central Java as part of their strict approval process for quality and sustainability.
Jatenergy is currently producing oil from just 2000 hectares, and expect its sales to hit the 1000-ton mark this financial year. ?We have plans to extend our fields initially by 9000 hectares and, over the next 5-6 years, to more than 100,000 hectares. Central Java has the potential to be a world scale plant oil producer,? Phil Hodgson said.
Lufthansa guarantees that the production of its biofuel is not in direct competition with food production and that no rainforests are destroyed. The trial is being conducted with the financial support of the German Government.
Apart from monitoring CO2 emissions, Lufthansa has said that the trial flights would test the maintenance and lifespan of its engines. Since biokerosene has similar properties to those of conventional kerosene, it can be used for all aircraft types without any need for modifications to the aircraft or its engines.
Phil Hodgson said the Lufthansa initiative substantiated Jatenergy?s long-term strategy to realise value from renewable energy.
?The world is rapidly enacting measures to cut carbon pollution and secure its energy future. Jatenergy intends to remain at the forefront of renewable energy developments by expanding its production of crude oil from jatropha, a second-generation biofuel feedstock.? (romel/roffie)