Paul Benetti, Chief Executive Officer of GEM BioFuels Plc, comments on first exports of jatropha oil from Madagascar, plans for expansion into Africa and estimated cost of production. He spoke yesterday in London.
“Shipments will start this year.
“First shipments are going to Eastern Germany” to a buyer switching to jatropha from rapeseed oil.
On markets and prices:
We expect “a good solid market in Europe. Jatropha will be priced at a premium in Europe because it meets sustainability criteria.
“Pure jatropha oil produces 60 to 70 percent less carbon than crude.”
We expect cost of production of between $30 a barrel and $35 a barrel after reaching peak output in 2017. “That’s where we see our long-term cost of production.”
On expansion outside Madagascar:
“We are looking at geographical expansion in Africa” in order to expand acreage more quickly.
“You can only plant seed when there is rain. The planting season in Madagascar is from November until the end of March. In West Africa the rainy season is from April to July.”
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