New Feedstocks for Biofuels Global market study on Jatropha

Transcription

1 New Feedstocks for Biofuels Global market study on Jatropha Kraftstoffe der Zukunft 2008 Berlin, December 2nd, 2008 Kraftstoffe der Zukunft Berlin GEXSI LLP

2 Content of this presentation 1 The Global Exchange for Social Investment 2 The Global Market Study on Jatropha 3 Our Jatropha activities and the Jatropha Sustainable Biofuels Alliance Kraftstoffe der Zukunft Berlin GEXSI LLP

3 Content of this presentation 1 The Global Exchange for Social Investment 2 The Global Market Study on Jatropha 3 Our Jatropha activities and the Jatropha Sustainable Biofuels Alliance Kraftstoffe der Zukunft Berlin GEXSI LLP

4 The Global Exchange for Social Investment (GEXSI) MARKET Commercial Investments Degree of self-reliance AID Grant Funding GEXSI focus Civil Voluntary Organizations and Micro-Entrepreneurs often depend on grant funding 10-50k Hybrid social organizations require investments at below-market conditions Social businesses with solid business model and track record are valid for commercial investments 50k-500k 500k-2m GEXSI assists social entrepreneurs and social purpose businesses in developing countries to move from aid to market Business planning Investment structuring Arranging for below-market or full commercial investments Networking and exchange of information and expertise Kraftstoffe der Zukunft Berlin GEXSI LLP TIME

5 Content of this presentation 1 The Global Exchange for Social Investment 2 The Global Market Study on Jatropha 3 Our Jatropha activities and the Jatropha Sustainable Biofuels Alliance Kraftstoffe der Zukunft Berlin GEXSI LLP

6 Why Jatropha as an alternative feedstock? 1 Demand developments Growing global fuel demands Peak oil: higher prices / production costs for fossil fuels 5 4 Second / third generation fuels Cellulosic based fuels not available in the short run Algae fuel in the short run not feasible / competitive Sustainability issues CO2 Balance Rehabilitation of marginal / eroded land Need for non food, low cost and high quality feedstock for 1st Gen Biofuels 2 3 Feedstock prices Supply shortages also due to food market developments Huge fluctuations in plant oil prices in Development issues Food vs. Fuel discussion Rising food needs Rural development / electrification Kraftstoffe der Zukunft Berlin GEXSI LLP

7 Jatropha General Features Jatropha curcas - Is a perennial oil-bearing shrub or small tree - Produces seeds that contain approx % of non-edible oil - Originates from Central America and is known today in many countries throughout the tropics - Is drought resistant and survives at an annual precipitation of down to 300mm - Has traditionally been used as living fences and for production of soap, medicine, oil for lamps etc. Photos: A. Renner Kraftstoffe der Zukunft Berlin GEXSI LLP

8 Key facts about Jatropha Advantages - Jatropha yields a high-quality oil which is well suited for use engines - Jatropha has a high yield potential of more than 2 tons of oil per hectare per year. - Jatropha can grow on poor soils that are not suitable for food production; it is suited for the rehabilitation of waste lands. - It grows, among others, in semi-arid regions not suited for oil palms. - Jatropha seeds do not have to be processed immediately (unlike palm oil); therefore remote areas can be included in the production schemes. - Jatropha can be planted as a hedge around fields offers smallholders an opportunity to create additional revenues. - Jatropha is well suited for intercropping, in particular during the first years Risks and Challenges - Jatropha is a wild species, not a domesticated industrial crop. - Yield expectations are very uncertain due to inhomogeneous results and the lack of improved seed material; - Jatropha will not produce good yields in poor conditions; there are trade-offs between rehabilitation of wastelands and maximisation of oil production. - Harvesting is very labour-intensive and may jeopardise the economic viability. - Pests and diseases are a problem for Jatropha as they are for any other crop, particularly in monoculture. - Large-scale production schemes may heavily distort local social and eco-systems. - Jatropha contains toxic substances. So far, the seed cake cannot be used as fodder for animals. Kraftstoffe der Zukunft Berlin GEXSI LLP

9 Global Jatropha Market Study How we assessed current Jatropha developments We have interviewed Experts in countries We have identified and processed data of 242 Jatropha projects We received 160 fully completed online questionnaires The study features 52 Methodology: We have acquired the information in this study through expert interviews via - An online questionnaire - Telephone interviews as well as - correspondence complemented by internet research and in-house expertise. Type of experts interviewed (multiple answers possible) 43% 10% 13% 22% 24% 34% 14% 4% countries and provides detailed country profiles Expert Governm. NGO Investor Operator Develoop. Farmer Other Kraftstoffe der Zukunft Berlin GEXSI LLP

10 Size and growth of Jatropha projects Jatropha experiences strong growth, especially in Asia Scale of Jatropha plantations (ha) Distribution of Jatropha plantations 2008 (ha) 12.8 Mio. 2% 13% 4.72 Mio. 85% 936,000 Asia Africa Latin America n = 242 identified projects and 176 expert interviews; Source: GEXSI Survey 2008, Expert Country Estimates Kraftstoffe der Zukunft Berlin GEXSI LLP

11 Jatropha projects today and plans for 2015 Scale of Jatropha projects (ha) and number of projects today projects 97 projects 41 projects 9.2 Mio. 1.6 Mio. 2 Mio. 796,000 21, , Latin America Africa Asia Kraftstoffe der Zukunft Berlin GEXSI LLP

12 Scale of Commercial Jatropha Activity Strong commercial activities (> 5000 ha, increasing) Low commercial activities (< 100 ha, just starting) Rising commercial activities ( ha, increasing) No commercial activities Not analysed Kraftstoffe der Zukunft Berlin GEXSI LLP

13 Political Support for Jatropha Cultivation Governmental support for Jatropha : Jatropha-specific biofuel legislation or programs in place General biofuel legislation or programs in place or in preparation No policies or programmes on biofuels reported Jatropha is banned Kraftstoffe der Zukunft Berlin GEXSI LLP

14 End Products of Jatropha projects Half of all projects intend to produce Biodiesel from Jatropha 69% 49% Oil Milling / Crushing Trans-esterification to Biodiesel * Sample: n = 160 projects ** Sample: n = 95 projects Source: GEXSI Survey 2008 Kraftstoffe der Zukunft Berlin GEXSI LLP

15 Towards Sustainability: Land Use Change (1) The vast majority of project developers interviewed argue that there are no conflicts with food production or biodiversity 49% 45% 5% 1.2% 0.3% None / Wasteland Agriculture (non food) Secondary Forest Agriculture (food) Primary Forest * Sample: n = 90 projects with a total planted acreage of 325,000 ha Kraftstoffe der Zukunft Berlin GEXSI LLP

16 Towards Sustainability: Land Use Change (2) The results of our project analysis were in general terms confirmed by our expert interviews. Cultivation affects primary forest Cultivation affects secondary forest Cultivation affects food production Cultivation mainly on marginal land 1 not at all 1 not at all 1 not at all 1 not at all very much 5 very much 5 very much 5 very much Kraftstoffe der Zukunft Berlin GEXSI LLP

17 Towards Sustainability: Food vs. Fuel To our surprise, 70% of the projects stated that they apply intercropping with other food or non-food crops. 85% 45% 40% 70% Even though Jatropha is a non-edible oil, it can potentially increase food production, if noncultivated lands are developed. Nurseries Direct seeding Cuttings Intercropping * Sample: n = 90 projects Kraftstoffe der Zukunft Berlin GEXSI LLP

18 Main conclusions from our study Jatropha is developing fast on large scale we expect investments of more than USD 1 bn annually in the years to come Jatropha oil will become available in larger volumes starting years time lag from plantation to production Jatropha can be grown sustainably if the right models are chosen regarding land use Intercropping reforestation, etc. But: we do not know enough about important aspects of industrial scale Jatropha farming, therefore we have to support research and the development of showcase models Kraftstoffe der Zukunft Berlin GEXSI LLP

19 The full Jatropha study is available for download Free download at: Total 190 pages Coverage of more than 50 countries worldwide More details on growth exp., regulation, sustainability, projects Regional summaries 6 Case studies on good and bad practice Kraftstoffe der Zukunft Berlin GEXSI LLP

20 Content of this presentation 1 The Global Exchange for Social Investment 2 The Global Market study on Jatropha 3 Our Jatropha activities and the Jatropha Sustainable Biofuels Alliance Kraftstoffe der Zukunft Berlin GEXSI LLP

21 GEXSI has built up extensive Jatropha competence Global Market Study on Jatropha for WWF and BP: Finalized in May 2008 Policy Advisory work: Initiator and founding member of the Jatropha working group in the European Roundtable of Sustainable Biofuels Jatropha expertise: agronomy expertise, crushing tests, research results Project Development, Financing and Implementation: Jatropha pilot project in Madagascar Consulting, Coaching and Mentoring of Jatropha entrepreneurs in Asia, Africa, and Latin America Jatropha Platform ( center of knowledge sharing Jatropha Sustainability Alliance: platform for sustainability leaders to showcase sustainable alternatives to less or non-sustainable biofuels Kraftstoffe der Zukunft Berlin GEXSI LLP

22 How the Jatropha Platform works Mission: The Jatropha Platform links industry, research and other stakeholders to implement sustainable Jatropha models Assets - Contacts to 160 Jatropha projects - Research Partnerships - Technology partners (engine conversion, oil milling etc.) - Own project in Madagascar - Agronomic Expertise - Network of seed providers - Investors network - Development Aid / Finance network Activities of the Platform Project development Consulting Networking Madagascar Project Development Platform Jatropha study Support for projects and investors (Agro-nomy, seeds, busi-ness planning etc.) Practicioners workshop Roundtable of Sustainable Biofuels Kraftstoffe der Zukunft Berlin GEXSI LLP

23 The Jatropha Sustainability Alliance (1) The Jatropha Sustainable Biofuels Alliance in a Nutshell The Jatropha Sustainable Biofuels Alliance provides a platform for sustainability leaders to showcase sustainable alternatives to less or non-sustainable biofuels. Primary focus is on oil-bearing trees such as Jatropha; the focus may be widened over time. Jatropha is a young and up-raising industry which has no specific lobby yet. We give sustainability leaders a voice vis-à-vis key stakeholders such as opinion leaders, the general public or politics he Jatropha Sustainable Biofuels Alliance is a not-for-profit Association based in Switzerland; founded by GEXSI, Green Power Holding AG, and 4C Business Campaigning GmbH. A kick-off event took place on occasion of the JatrophaWorld Conference in October, 2008 in Hamburg. About 30 organizations have committed their participation Kraftstoffe der Zukunft Berlin GEXSI LLP

24 The Jatropha Sustainability Alliance (2) Sustainability Principles A business is sustainable when it meets the social, ecological and economic needs of the present without compromising the ability of future generations to meet their own needs. Our definition is based on the broadly accepted Brundtland Commission s definition of sustainability and the so-called Triple Bottom Line. Sustainability Criteria (first draft) No destruction of natural forest No competition of biofuels with food production: use of wastelands or intercropping with food crops Significant Carbon offsetting: in line with EU targets Poverty alleviation + local economic development in disadvantaged regions Compliance with leading Sustainability and CSR guidelines (such as the Cramer Criteria or the Guidelines developed by the Roundtable on Sustainable Biofuels) Monitoring and reporting of social and ecological impact Kraftstoffe der Zukunft Berlin GEXSI LLP

25 The Jatropha Sustainability Alliance (3) Work Program 2008 / 2009 Targeted deliverables by May 2009 Reputation Campaigning Media coverage of Jatropha best practices in magazines, TV, newspapers Regular exchange with journalists and opinion leaders Videos, films, online media Marketing of Jatropha Market Study Initiatives Food Positive Label: certifying positive impact on food production Regional campaigns Services for Members Monitoring of legislative developments in EU and key countries Information of Industry from participation in multi-stakeholder processes such as Roundtable on Sustainable Biofuels Constitution of working groups Own research on specific topics (e.g. development finance for outgrowers) Organizational Development Legal set-up and statutes Team, Budget and Work Program Advisory Board Kraftstoffe der Zukunft Berlin GEXSI LLP

26 Jatropha Sustainability Alliance (4) Kraftstoffe der Zukunft Berlin GEXSI LLP

27 Contact The Global Exchange for Social Investment GEXSI Thilo Zelt Phone: +49 (0) Contact Details GEXSI Berlin Office Palais am Festungsgraben 1 D Berlin, Germany Phone: +49 (0) Fax: +49 (0) Internet Kraftstoffe der Zukunft Berlin GEXSI LLP