RMI Petrol chairman Brian Maddersin has predicted that prices at the pump will soon reach an all-time high, saying, “We could be seeing new record pump prices within six months”.

The development of alternative fuels is rapidly increasing as oil prices continue to rise, alongside increasing concern of the environmental impact of tradition fossil fuels, not least the worries over the Gulf of Mexico oil spill last month. One such fuel being encouraged by a number of environmentalists and energy experts is biofuel produced from the Jatropha tree.

President and CEO of refining company Neste Oil, Matti Lievonen, predicts that the demand for renewable diesel is on the up and Europe alone will consume around 20 million tonnes as more stringent mandates are coming into force across the continent.

‘Globally we’re currently seeing about 10 million tonnes (a year) of demand for renewable biodiesel,’ he said.

Asia is also expected to consume larger amounts of the renewable fuel. By the year 2030 the population is expected to reach 1 billion and this will drive up the demand for energy by 50%.

Mr van de Water joins PT Waterland International as Director of Future Fuels after an exemplary, thirty-two year career at Royal Dutch Shell. Mr van de Water, an expert in hydro-carbons and fuel additives, has Waterland’s mandate to develop clientele in the aviation industry for Waterland’s Jatropha oil.

“Having spent over 30 years at Royal Dutch Shell, I have witnessed many events in the Petro-Chemical industry, yet none as profound as the legislation that has been passed in the EU which imposes the use of bio-fuels on the transportation industry,” stated Mr. Van de Water, newly appointed Director of Waterland.

Mr. Van de Water has been brought in by Waterland executives in order to target airlines for the sale of Waterland’s Jatropha oil. Dr. William Nolten, CEO of Waterland stated, “We are proud to have Mr. Van de Water on board. Adding him to our company is the culmination of one year of discussions. The fact that several airlines such as Air New Zealand, Continental, and Japan Airlines have announced that they have successfully run test flights of bio-fuel (including jatropha) and achieved a high degree of success, was the turning point in bringing him in to our company.”

The aviation industry’s largest engine manufacturers: General Electric, Pratt and Whitney, and Roles Royce have also released performance reports on their testings of bio-fuels on aircraft engine performance; they reported results which showed that the use of certain bio-fuels (jatropha included) reduces airline emissions significantly and does not harm the engines. In addition, both Boeing and Airbus recently confirmed in a Business Week roundup on bio-fuels and sustainable aviation that they are continuing at full speed with their bio-fuels oriented plans despite the economic downturn.

“I expect the use of bio-fuels to become mandatory as the airline industry is forced to meet emission reductions. There are discussions that this could happen as early as 2013. This presents a tremendous opportunity for Waterland since Jatropha is one of three or four bio-fuels which can fill the needs of the airlines,” stated Mr. Van de Water.

Waterland recently announced its first shipment of Jatropha Oil for the airline industry in Europe. To mark this achievement, the Company held a ceremony in Purwodadi, Central Java, Indonesia, on July 7, 2010. Special guests at the ceremony included Roberto Pardamean the KKPH administrator of Purwodadi, H Bambang Pudjiono,SH Bupati (mayor) of Grobogan, the Head of Unit 1 Perhutani of Central Java, the Head of the Forestry and Plantation Department of Grobogan, the Head of Industrial and Trading Department of Grobogan, a representative for Jatoil, a representative for Aston Lloyd Bio-Commodities, as well as representatives of 50 farming cooperatives (LMDH’s).

Jatropha is thought to be an ideal bio-fuel for use by the airline industry and is considered a second generation biofuel. Waterland intends to become a leading supplier of Jatropha oil to the EU transportation industry, specifically to the aviation industry.

Under the terms of the agreement, BP will take over Verenium’s facilities in Jennings, Los Angeles and San Diego, which include pilot plant and demonstration-scale facilities, as well as R&D.

Verenium will retain some R&D, its enzyme business, including its biofuel enzyme products, and will be free to develop its own lignocellulosic enzyme programme.

The company says its cellulosic ethanol technology is on the verge of commercialisation and BP is the right company to carry it forward to the next stage.

The acquisition indicates BP’s intention to lead the cellulosic biofuel industry in the US and will mean that it is one of the few to have all aspects covered from R&D to blending and distribution.

“By acquiring Verenium’s cellulosic biofuel technologies, BP Biofuels should be well placed to accelerate the delivery of low cost, low carbon, sustainable biofuels, at scale,” says BP Biofuels CEO Philip New.

The sale is under a new four year offtake agreement with Jatoil’s partner Waterland International, covering all crude jatropha oil produced from the first 1,000 hectares of the project. The initial shipment of 10 tonnes of oil will be used as feedstock for the production of aviation fuel, set to be consumed by a number of airlines.

Phil Hodgson, CEO, said: “We expect that further harvesting this year will allow us to market larger quantities of crude jatropha oil at more frequent intervals.”

Oil output is expected to reach around 700 tonnes between 12 and 18 months but this will almost double within the next three years.

The first stage of the project, covering 1,000 hectares of mature jatropha trees, and the same amount in new planting, was completed in June 2010. The venture is now moving into the second stage, which aims to increase total land holdign to 10,000 hectares.

Producing 800,000 tonnes of renewable diesel a year, NExBTL is now 10% away from completion and is due to come online in Q4 of 2010. The plant has the ability to use other feedstocks, including jatropha oil and animal fat.

When production begins the biodiesel will be exported to Europe and North America.

The president and CEO at Neste Matti Lievonen said: ‘With the construction of our NExBTL renewable diesel plant in Singapore into its final stages we are the world’s leading provider of renewable diesel.’

Along with NExBTL, Neste also owns and operates two other renewable diesel plants in Porvoo, Finland, producing 190,000 tonnes-a-year each. The company’s portfolio is set to expand further still with a €670 million refinery under construction in Rotterdam. When it becomes operational in mid 2011 the plant will produce 800,000 tonnes of renewable diesel annually.

In similar news, Lievonen predicts that the demand for renewable diesel is on the up and Europe alone will consume around 20 million tonnes as more stringent mandates are coming into force across the continent.

‘Globally we’re currently seeing about 10 million tonnes (a year) of demand for renewable biodiesel,’ he said.

Asia is also expected to consume larger amounts of the renewable fuel. By the year 2030 the population is expected to reach 1 billion and this will drive up the demand for energy by 50%.

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Al Bryant, vice-president of Boeing’s research and technology department in China, told reporters the new fuel was expected to be commercially viable within three to five years.

“We believe in three to five years we should see a portion of fuel in commercial aviation (using biofuel), but a lot has to be done,” he said.

“We’ve proven it can be flown and it is a matter of scaling it up to make it commercially viable.”

Four test biofuel flights have already been conducted in the United States, and Bryant said China was now the focus of development because “they have made the decision to move faster”.

Aviation is responsible for about 2 percent of total global greenhouse emissions, and the entire industry aims to become carbon neutral by 2050 through the use of alternative fuels.

China aims to replace at least 15 percent of total diesel and gasoline consumption with biofuel by 2020.

It has a number of pilot ethanol fuel projects in the farming belts of central and northeast China, but it has been wary of traditional processing methods because of concerns about food security and the impact on grain prices.

After banning the use of corn and edible oil in 2006 and suspending all new licenses for bioethanol projects in 2007, China is focusing on new-generation variants processed from agricultural waste, cellulosic materials or hardy but inedible oil-bearing plants like jatropha.

“The United States relied on corn to produce biofuel but relying on crops has been criticised, and second-generation biofuels are more significant for China,” said Zhang Guobao, head of the country’s National Energy Administration.

Rising fuel prices, environmental concerns, pressure for oil independence, and energy policies are creating a strong market for renewable energy. But which biofuel is best? This report looks into the green credentials of palm oil, millettia, and jatropha to analyse the new asset classes which can help stop climate change while also making investors a profit.

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TAM’s CEO, Libano Barroso, says that the company honours its social and sustainability commitments through such an initiative. “We have put our best efforts in to using Brazilian raw materials in the production of this bio-fuel, resulting in significant economic and social gains. A source of aviation bio kerosene, the biomass is 100% Brazilian, a resulting of family agricultural projects and large farms in the hinterlands of Brazil that have been devoted to the pioneering cultivation of the jatropha plant.”

TAM has already organised the availability of the bio-fuel for the demonstration flight later this year. Through the Brazilian Association of Jatropha Producers (ABPPM), TAM acquired jatropha seeds from producers in the north, southeast and centre west of Brazil, these were then transformed into a semi-refined oil that was shipped to the US where UOP, a Honeywell company, processed the jatropha oil into bio kerosene which was mixed with conventional aviation kerosene in a 50-50 mix.

The demonstration flight will be the first in Latin America to use this innovative combination of the type of plane and engine flying with aviation bio kerosene produced from jatropha. The TAM flight will be watched and monitored by the appropriate aviation authorities.

TAM is currently studying its contribution in the development of the production chain of the vegetable biomass fuel to create a sustainable Brazilian bio-fuel platform. Known by its scientific name, Jatropha curcas L, the shrub in question is a plant that does not compete with the food chain as it is not fit for human or animal consumption, and can be intercropped with pasture and food crops.

Through a joint effort with the Brazilian Association of Jatropha Producers, TAM intends to study the commercial scale development of sustainable jatropha production, with an eye to transforming it into aviation bio-fuel.