$480 Million Investment on Biodiesel

Posted by redspot | September 25, 2008 .

A petroleum company based in India is ready to make the bold move to put in a whopping $480 million investment in biodiesel. In a joint venture agreement, the company known as the Bharat Petroleum Corp. Ltd. is looking to produce biodiesel out of jatropha plants that are known to have rich oil content. It is allotting one million hectares worth of land for the project, which all starts with the growing, cultivating, and processing of such plants to create biodiesel.

The company selected a wasteland to jumpstart the feedstock for their biodiesel production. The entire process to transform the jatropha plant into biodiesel will be spearheaded by its sister company, Bharat Renewable Energy Ltd. Like in the U.S., India recently released a government policy that aims to integrate as much as 20% biodiesel into mainstream gasoline stations. This goal is to be achieved by 2017.

Jatropha plants are non-edible plants but can be very useful in making biodiesel and jet fuels. As such, the government is giving tax discounts and subsidies to companies that would initiate the cultivation of these plants. not on fertile soils, but on wastelands. Right after this bold move, more petroleum companies are expected to follow suit.

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