Business established: 

Jatropha Curcas Plantation and Biodiesel Processing Plant

Alternative Fuel to ease the country's burden on fuel importation.

  • 2ba fruit with flower.jpg

    2ba fruit with flower.jpg

The rising cost of fossilized fuel, the heightened awareness among our countrymen of the increased pollution in the environment, and the undue economic burden of fuel importation made the search for alternative fuel that are renewable, less expensive and clean in accordance with the 1997 Clean Air Act and the 2007 Biofuels Law, essential and imperative.

The Jatropha Curcas plant bear seeds that have a very high oil content. Oil that have very similar properties to regular diesel, which can be processed to BIODIESEL through transesterification.

Facts

Year of establishment

1996

Sales (US$)
Two years ago:
Last year:
This year (forecast): 140,000
Year 2 (forecast): 560,000
Year 3 (forecast): 1,680,000
Net profit after tax (US$)
Two years ago:
Last year:
This year (forecast): 183
Year 2 (forecast): 419,776
Year 3 (forecast): 1,539,209
Total number of Employees
Two years ago:
Last year:
This year (forecast): 50
Year 2 (forecast): 100
Year 3 (forecast): 120

How do you expect this to be financed?

Own Contribution in cash 8,400
Loans (debt) 420,000
Shares in your company that you offer to investors (equity)
Other sources 7,680
Total finance needed (US$) 436,080

The Business

What is your product/service?

The industry per se, is relatively new in the country. The law that specifically deals with biodiesel was only enacted last May 6, 2007. The newness of the industry combined with the lack of information drive pertaining to the specifics of the industry have made many of our countrymen skeptics. Who can blame them? After all, Jatropha Curcas or Tuba Tuba was used as live fence for countless decades now, because it is unedible even to the voracious goat. And was only used as a source of medicinal oil. Country folks have little or no care for the plant since no part of the plant is edible, in fact it is even poisonous.

With the advent of rising awareness on environmental pollution, and advanced technology. The lowly plant has become the center of research and debate...

Jatropha Curcas Biodiesel is definitely cheaper than coconut biodiesel, since the Jatropha Curcas plant requires less capital in propagation, maintenance and harvesting compared to coconut. Furthermore, the chemical composition (e.g. viscosity, cetane number) of Jatropha Curcas oil is more comparable (if not better) to petro diesel.

On our part, being the processor and supplier of raw materials at the same time, we can afford to make the retail price lower than the existing price of petro diesel without sacrificing quality and standard adherence.

We have devised a system in which our end-products will consistently adhere to the EN 14214 standard system for biodiesel. A system far more strict than the known ASTM.

The enactment of the Biofuels Law mandates petroleum product sellers to blend 1% of biodiesel to their regular diesel without affecting the price. In that scenario, we can supply the oil players with their biodiesel requirements on a wholesale basis, and at the same time sell 100% biodiesel to motorists who prefer to use a stronger blend or pure biodiesel on their diesel engined vehicles.

Aside from biodiesel, Jatropha Curcas seeds and seedlings will also be sold to farmers interested in propagating the aforementioned plant.

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

We always say- The race to be the first to produce Jatropha Curcas Biodiesel is on!. As of this time, the only main competitor we have is the coconut biodiesel distributed to the big oil companies and manufactured by a big coco biodiesel company, which is now considered as the first biodiesel producing company in the country. However, as previously mentioned, the price of their product alone is sufficient enough to discourage users from actually patronizing it. We can sell pure Jatropha Curcas Biodiesel for as low as Php 30.00/liter versus their Php 140.00/liter, with basically the same advantages.

But, advertising and information campaign is really necessary to educate potential users of its benefits and to encourage trial usage and ultimately, patronization. Transport companies will also be approached for potential business ventures.

We have connections on the local media, since our cooperative chairman is a broadcaster. Press releases will be made prior to the release of the product and during release.

What makes your business different/better than your competitors (competitive advantage)?

As mentioned, we are striving to be the first to produce Jatropha Curcas biodiesel and therefore earn the title "PIONEER" in that field. Our capability to make our selling price competitive, if not lower to regular diesel but definitely superior in benefits is what makes our product unique from our major compeitor.

The Entrepreneur & Management

Describe the entrepreneur & management

As mentioned above, we are among the pioneers to really focus on Jatropha Curcas and its biodiesel. We have helped established Jatropha Curcas plantations all over mindanao and cebu. What we lack in financial capability, we made up with technical know-how through intensive research and applications. As of this time, our vice-chairman have designed and built a prototype, small-scale biodiesel processor, which is 90% complete and is expected to operate soon. On our 1,000 hectare potential plantation, 30 hectares of which are already fully planted.

We have devoted the past three years in researching, developing technologies and specializing in our chosen field. Countless hours were spent in studying the ins and outs of establishing a Jatropha Curcas plantation and setting up a biodiesel processing plant.

The fact that the 2006 Biofuels Law was already enacted strengthened our vision to really pursue this project. Financing opportunities may be closed as of this time, but we're sure windows will be opened soon.

Development

How does your business improve the local living standards (social and environmental)?

All the labor requirements for the plantation will come from the indigenous people communities surrounding the area. The locals largely depend on farming as their primary source of livelihood. However, given their financial instability to procure the materials they need for farming, the low prices on their produce as dictated by the middlemen, they really don't have a steady, adequate source of income.

When the project starts, a number of the locals will be employed and will be given a fixed amount for their salary every month. Medical benefits will also be given to them and their family. Furthermore, a cooperative store will be established on the area to provide them with the basic they need everyday, thereby eliminating their transportation expenses when going to the town proper to buy what they need.

Depending on the success of the project, an educational facility will be put up for the locals to ensure that they have access to education.

Those who have a large expanse of land will be encouraged to plant Jatropha Curcas and a marketing agreement will be drawn to ensure that they will have a sure buyer of their produce.

It is also expected that with all those mentioned above, the overall standard of living in the area, and the people's level of education and overall well-being will improve in the first 5 years of operation of the cooperative.

4 comments

Philip Abraham

I am from India. I have also planted Jathropha in my farm and plan to expand in a big way.
Good to be in touch.

Philip Abraham, 10 June 07, 18:22

Nice Plan

I am from Southern Leyte, Philippines and we have vast empty lands. Our local government is planning to introduce jathropa in the countryside. Can you provide us with seedling materials and other estimated cost to reach our area?

Thank you. Please keep us posted.

Nelson T. Enojo

Nelson Enojo, 9 July 07, 02:11

Correspondence

Hello. Our fields have some areas in common. Would you have any other means of correspondence for some questions I have?

Jeffry Ty, 12 July 07, 12:06

Correspondence

Hi Sir, you can email your queries or suggestions in maiglenn227@yahoo.com. TNx.

Glenn Matthew Uyengco, 21 July 07, 16:44
Needs