Repsol and KUO are mad about jatropha
Repsol and KUO Group signed an agreement in Madrid that creates a joint company called Kuosol dedicated to the development of bioenergy from the cultivation of the jatropha curcas, an oilseed with a high content of non-edible oil.
Both Repsol and the KUO Group will have a 50% stake in Kuosol; its headquarters will be in Mexico and the total investment is estimated at $80 million. Its activities range from farming to industrial installations and its main objective is the use of integrated biomass plantations of jatropha curcas oil to generate biofuels and bioenergy, in a sustainable manner.
Repsol boasts a long history and extensive experience in researching, developing and marketing biofuels worldwide. In April 2010, Repsol created its New Energy unit to identify and develop businesses related to bioenergy, renewable energy for transport and other areas which present synergies with the company’s existing activities.
This project meets the environmental and social sustainability criteria as defined by the Renewable Energy Directive of the European Parliament and required by Repsol and KUO Group for all biofuels projects. Specifically, this project achieved a reduction of greenhouse gases in excess of 50%, required by the Directive from 2017, which will be developed on land in accordance with the criteria defined by this standard.
In 2008, the KUO Group began a pilot project in the Yucatan state of Mexico, to produce bioenergy from non-edible second generation crops on land not suitable for agriculture. The first phase was developed with more than 300 hectares of jatropha curcos oilseeds to obtain an oil to produce biodiesel.
The project allows the KUO Group to harness vacant lots used for the pork-rearing business, to reuse recycled water on its farms, rich in nutrients for irrigation, and provides easy access to carbon credits under the Clean Development Mechanism (CDM) scheme.
The objectives for this period are:
* To plant and cultivate 10,000 hectares of jatropha in Yucatan, Mexico, principally on third party lands in this area, which will represent a positive impact on rural communities.
* To harvest 44 million litres of crude oil for biofuels.
* Integrated use of biomass from forest plantations, cogeneration of steam and electricity for self-supply, with surplus production sold.
* Generate more than 400 direct jobs and 2,000 temporary jobs.
It is estimated that agricultural development will be completed in the next three years, allowing industrial production to start in 2013.
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