BP in bio-diesel deal
Friday, 29 Jun 2007 10:16
The two firms will invest $160 million in the bio-diesel venture over the next five years.
British Petroleum (BP) and D1 Oils are set to launch a joint venture to develop a new bio-diesel through the planting of jatropha curcas – a plant that can grow in wastelands and can be used to develop sustainable fuels.
The two firms will invest $160 million (£79.9 million) in the venture over the next five years. A total of 1.3 million hectares will be cultivated with the plant in south-east Asia, southern Africa, central and South America and India.
Head of BP Biofuels Phil New said: "As jatropha can be grown on land of lesser agricultural value with lower irrigation requirements than many plants, it is an excellent bio-diesel feedstock.
"D1 Oils' progress in identifying the most productive varieties of jatropha means that the joint venture will have access to seeds which can substantially increase jatropha oil production per hectare,' he added.
He said the joint venture aimed at producing up to two million tonnes of jatropha oil a year
The chief executive officer of BP's refining and marketing business Iain Conn said: "This joint venture is a further milestone in our strategy to develop real avenues to contribute to global energy supplies in ways that are sustainable and progressive."