Jatoil Ltd. announced that it has achieved production of 200 metric tons of crude jatropha oil via its 70 percent owned Central Java, Indonesia, joint venture, PT Jatoil Waterland. The oil will be shipped and used as a feedstock for biobased jet fuel by commercial airlines, the company said.
The production milestone comes six months after Jatoil made its inaugural 10 metric ton sale from its Indonesian project to an international consortium of airline companies. According to Jatoil CEO Phil Hodgson, the latest production milestone of 200 metric tons pales in comparison to what the company intends to produce later this year.
In 2010, Jatoil doubled its jatropha land holdings in the Central Java, Indonesia, to 1,000 hectares (2,471 acres) as part of the development of its PT Jatoil Waterland joint venture. Jatoil currently has around 2,000 hectares of jatropha trees with agreements in place for an additional 10,000 hectares that it's targeting to plant over the next 12 months, Hodgson said.
While jatropha is and will likely be the center of focus for Jatoil for several years to come, Hodgson said the company may potentially exploit other nonfood oil crops in the future.
Although Jatoil's focus lies in serving the aviation and power generation markets with its crude oil, Hodgson doesn't dispute that as increased volumes become present in the global market, some of the crude jatropha oil will certainly find its way to the global biodiesel supply market.
According to Hodgson, Jatoil has maintained producing increased quantities of oil, which is expected to be a prized commodity by airliners as they strive to meet mandatory new European Union carbon dioxide emission regulations expected to go into effect in 2012. Jatoil's partner in the joint venture, Waterland International, has developed appropriate farming and processing practices that satisfy airline certification and accreditation standards.
