Toyota to produce jatropha
In Japan an affiliate of Toyota Motor corporation will grow jatropha to use its oil as an alternative fuel in 2010.
Toyota Tsusho is in negotiations with a Philippine banana plantation to introduce the non-edible feedstock. Toyota Tsusho bought a stake in Singapore-based seed researcher JOIL(S) this year to develop a better plant after erratic yields prompted BP and rivals to pull out of production ventures.
‘We need to dramatically increase the plant’s yield in order to make this profitable,’ Makoto Hattori, project development manager, says. ‘Rising oil prices and government legislated use of biofuels would also help make the business viable. Past failures with jatropha by others were largely a result of a lack of consideration about the downstream logistics of processing and marketing the crop.’
The trading house may partner oil refineries in the future. The investments are part of a plan by Toyota Tsusho to reduce its reliance on Toyota Motor and generate profits from new business lines. Hattori expects the jatropha business to be profitable within five years.
Toyota Tsusho is in negotiations with a Philippine banana plantation to introduce the non-edible feedstock. Toyota Tsusho bought a stake in Singapore-based seed researcher JOIL(S) this year to develop a better plant after erratic yields prompted BP and rivals to pull out of production ventures.
‘We need to dramatically increase the plant’s yield in order to make this profitable,’ Makoto Hattori, project development manager, says. ‘Rising oil prices and government legislated use of biofuels would also help make the business viable. Past failures with jatropha by others were largely a result of a lack of consideration about the downstream logistics of processing and marketing the crop.’
The trading house may partner oil refineries in the future. The investments are part of a plan by Toyota Tsusho to reduce its reliance on Toyota Motor and generate profits from new business lines. Hattori expects the jatropha business to be profitable within five years.
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