Landkom inks biodiesel venture with Sunfuel
Ukraine-based Landkom International, a producer of oilseed rape and wheat, has signed an agreement with Sunfuel Ukraine, a Ukrainian specialist biofuels group to cover the sale, processing and development of a new non edible oil seed variant for biodiesel, known as Isis.
Landkom and Sunfuel have jointly tested Isis in Ukraine, Europe and South Africa with leading universities and commercial fuel companies and are now moving to commercialise the seed.
Isis is similar to oil seed rape (OSR) but has the potential to be considerably more cost effective for biofuel production than both OSR and palm oil, the other main sources for biodiesel production. Isis can be grown on marginal quality or fallow farming land with a reduced fertiliser requirement.
The initial cooperation agreement was signed by the two companies whereby Landkom agrees to contribute the land and agricultural production resources to grow and harvest the seeds and Sunfuel will invest in the fuel processing facilities at Landkom’s operations in Dobrosyn, Western Ukraine, close to the Polish border.
Landkom and Sunfuel expect to formalise a further cooperation agreement to extend the working relationship between the two companies. Ongoing plant breeding to improve the seed’s characteristics further is taking place at a leading Ukrainian agricultural university.
In Q2 this year, Landkom planted approximately 1,000 hectares of the seed Isis on marginal quality land not suitable for the Group’s food crops to demonstrate proof of concept. The crop planted is not included in the group’s 30,950 ha planting programme announced in Q3 last year.
This is the third year of cultivation of this crop under test conditions by Landkom. On completion of this latest larger scale trial, Landkom may use some of the biodiesel produced to reduce its own fuel costs and with Sunfuel will in due course also sell product to third parties.
Tests show that the biodiesel produced by this seed, which has already been blended and tested with a major Ukrainian fuel retailer in blends with diesel of between 5% to 20% is usable at significantly lower temperatures than equivalent blends produced from palm oil and importantly, these diesel blends have passed EU diesel specifications.
Landkom and Sunfuel have jointly tested Isis in Ukraine, Europe and South Africa with leading universities and commercial fuel companies and are now moving to commercialise the seed.
Isis is similar to oil seed rape (OSR) but has the potential to be considerably more cost effective for biofuel production than both OSR and palm oil, the other main sources for biodiesel production. Isis can be grown on marginal quality or fallow farming land with a reduced fertiliser requirement.
The initial cooperation agreement was signed by the two companies whereby Landkom agrees to contribute the land and agricultural production resources to grow and harvest the seeds and Sunfuel will invest in the fuel processing facilities at Landkom’s operations in Dobrosyn, Western Ukraine, close to the Polish border.
Landkom and Sunfuel expect to formalise a further cooperation agreement to extend the working relationship between the two companies. Ongoing plant breeding to improve the seed’s characteristics further is taking place at a leading Ukrainian agricultural university.
In Q2 this year, Landkom planted approximately 1,000 hectares of the seed Isis on marginal quality land not suitable for the Group’s food crops to demonstrate proof of concept. The crop planted is not included in the group’s 30,950 ha planting programme announced in Q3 last year.
This is the third year of cultivation of this crop under test conditions by Landkom. On completion of this latest larger scale trial, Landkom may use some of the biodiesel produced to reduce its own fuel costs and with Sunfuel will in due course also sell product to third parties.
Tests show that the biodiesel produced by this seed, which has already been blended and tested with a major Ukrainian fuel retailer in blends with diesel of between 5% to 20% is usable at significantly lower temperatures than equivalent blends produced from palm oil and importantly, these diesel blends have passed EU diesel specifications.
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