TheBioenergySite Latest News
Market Price for CJO Urged
INDONESIA - Experts have urged the government to come up with a market price for crude jatropha oil (CJO) to attract more investors to the country's developing biofuel sector."Jatropha is not considered a food, so there's no fixed price for it. An established market price can draw local and overseas investors' interests in developing biofuel in the country," said Chandra Indrawanto, a researcher from the Indonesian Center for Estate Crops Research and Development (ICERD).
The Jakarta Post tells us that Chandra was speaking on the sidelines of the International Jatropha Conference: Research for Near Future Business, currently being held in Jakarta.
"The government should set a jatropha market price. It would be great if it also subsidized jatropha oil just like it subsidizes kerosene and diesel," he said.
He added the current price of jatropha biodiesel was over Rp 5,000 (54 US cents) per liter. He said an established market price would also benefit jatropha farmers.
Erliza Hambali, director of the Surfactant and Bioenergy Research Center (SBRC) at the Bogor Institute of Agriculture (IPB), concurred.
"I suggest the government set up a market price for CJO. The fixed price will make it easier for people, including farmers and businessmen, to plan their finances when developing the fuel," she said.
Researchers believe the fuel from the Jatropha curcas plant is a viable alternative to fossil fuels, and could even help ease the country's energy crisis. Jatropha plants can grow in arid regions with minimal water.
Bachtiar Parmus, a jatropha specialist at PT Rajawali Nusantara Indonesia (RNI), said any proposed jatropha market price would depend on the price of seeds, which cost between Rp 500 and Rp 1,000 per kilogram.
"The market price for jatropha will increase once development of the biofuel sector has stabilized. However, the jatropha business is still unstable at the moment because we only started development of jatropha oil in 2005. But the government can play an important role by establishing a CJO price," he said.
View the Jakarta Post story by clicking here.
TheBioenergySite News Desk
Related news items:
Cooperation Agreements for Brazil and Canada
Consumers Energy Wind Farm Plan
Biofuel Subsidies in China- EPA Applauded for Biodiesel Rule in 2009
- Sugarcane Expansion to be Restricted
Related News Categories: Technology, Regulatory
Latest Bioenergy Industry News
- Cooperation Agreements for Brazil and Canada
NTR in Algae Joint Venture- Symposium on Future of Biodiesel
- Consumers Energy Wind Farm Plan
- Commissioner at International Conference on Biofuels
Daewoo Logistics Biofuel Project for Madagascar
Biodiesel from Urban Waste- Wind Farm Plan for Brazil
Egypt Wants Brazilian know-how in Biofuels- Inland Empire Oilseeds Starts Biodiesel Production
