Brazil Invests in a Jatropha Plant

Phase-I of the project is to cultivate 1000 hectares of land in 2008. Phase-II (2009 - 2010) is to expand cultivayion to 10,000 hectares.

Abcesso Technology Ltd is now offering shares in the developing plantation which it hopes will grow to 100,000 hectares.

Each share is priced at US $2,000 and represents the planting of 625 Jatropha trees and the associated costs of building biodiesel refineries and press/oil extraction facilities.

Predicting biodiesel sales prices of $0.65 per litre (assuming OPEC oil prices of $65 per barrel), and 35% oil yields, the following are the projected returns per share.

Jatropha is a fairly indestructible crop which can survive three years of drought, is resistant to diseases and pests, is not eaten by animals, requires minimal maintenance, and will remain productive for up to 40 years. Therefore, at 65 cents per litre of biodiesel the total return on a $2,000 share investment is predicted at over $16,000.

$2,000 left in the bank earning 5% net interest would leave you with $5,300 after the same 20 year period.

Obviously the returns will fall as the price of crude oil falls and rise as crude oil rises. At the end of each financial year dividends are paid out to investors.

Originating in the Caribbean, the jatropha plant was spread as a valuable hedge plant to Africa and Asia by Portuguese traders.

There are thousands of hectares of uncultivated ground. This land lies mainly in areas where the population leads a completely hopeless life. they can give these people a future and an existence, now and for generations to come.

"Jatropha have the highest payback of any biofuel".

TheBioenergySite News Desk

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