Jatoil produces 200 tonnes of crude jatropha oil

Australia-listed Jatoil Limited has achieved production of 200 tonnes of crude jatropha oil (CJO), all of which will be shipped and used as a feedstock for keenly sought after biojet aviation fuel for use by commercial airlines.

Jatoil?s 70%-owned Central Java joint venture, PT Jatoil Waterland, is consistently producing increased quantities of CJO, which is in high demand as airlines strive to meet mandatory new European Union carbon dioxide emission regulations, the firm said in a statement on Thursday, adding CJO is an environmentally friendly, second generation biofuel feedstock.

The 200-tonne production milestone comes six months after Jatoil made its inaugural l0-tonne biofuel sale from its Indonesian project to the airline industry.

"We are reaping the rewards of our investment strategy in the PT Jatoil Waterland venture since the initial purchase of 1,000 hectares of mature jatropha trees last June,? said Jatoil?s CEO Phil Hodgson.

?Currently, only limited supplies of renewable oil feedstock is available for biojet fuel, and jatropha provides the necessary qualities that are sought by airline companies. Our operations in Central Java are starting to produce larger quantities, and have recently been visited by representatives from Lufthansa, who have been evaluating supply sources,? he added.

Jatoil?s Central Java partner, Waterland International, has developed appropriate farming and processing practices to satisfy airline certification and accreditation standards.

?A variety of boxes are being ticked, including biodiversity, community support, employment and environmental impact to achieve the standards that are set," Waterland CEO William Nolten said.

The EU?s new emissions trading scheme comes into force next year, but airlines must apply for free emissions allowances by next month and also report on their carbon dioxide emission levels. The scheme applies to all airlines that arrive or depart from an airport within an EU member nation. The use of environmentally friendly fuel can reduce airline operating costs thanks to emission credits available for the use of biojet fuel.

Biojet fuel that is derived from jatropha has been successfully tested by several airlines, and is poised for more widespread use in commercial aircraft in 2011. (kanti)