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Biofuel Venture Reaps Growing Benefits from 'Diesel Tree'
    2007-12-19 13:55:14     Xinhua
Further use of grain for ethanol production has been banned in China to ensure that grain remains available for food.

Jatroha L projects have also attracted foreign investors. For example, an American energy company, Becco Biofuel, plans to invest up to US$2 billion in growing 200,000 ha. of Jatroha L and establishing a 400,000-ton biodiesel refinery in Panzhihua City, Sichuan.

India, Uganda and Vietnam have launched experiments in cultivating the tree under sponsorship from Germany and the United Nations.

India hoped to produce 10 million tons of biodiesel a year in 10 years while the United States planned to increase the output of biodiesel to 1.15 million tons by 2010.

Growing "diesel trees" has helped raise farmers' living standards in areas where incomes are low and the land is poor.

More than 10,000 farmers are being employed by the Zhongshui company to plant the crop. Each household is expected to earn up to 30,000 yuan (US$4,000) per hectare as of next year, when the trees began to yield fruit. Growing the more lucrative crop will almost double their family incomes, which have come mainly from corn, rice and vegetables.

A poverty-relief campaign, initiated by the United Nations Development Program, the Ministry of Science and Technology, and the Ministry of Commerce last November, will invest US$8.585 million to help farmers cultivating the plant in Sichuan, Guizhou and Yunnan.


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