Living in Peru : your everyday companion

Will Peru be the World’s Next Big Biodiesel Producer?

Levi Novey
eco worldly

As South American nations rush to achieve energy independence and become the next Venezuela, oil exploration and treasure hunts for profitable and reliable energy sources have increased in countries like Uruguay, Ecuador, Brazil, and Chile.

On August 15, the U.S. company Pure Biofuels opened up a new biodiesel plant in Lima, Peru.

It plans to produce 52 million gallons of biodiesel next year, about 35% of which will meet Peru’s internal demands for the alternative fuel.

The rest will be exported. The plant has the capacity to increase its production threefold, and hopes to eventually produce 156 million gallons of biodiesel per year. Production has yet to start at the new plant, but will later this year.

The new plant is only the second to open its doors in Peru. The other biodiesel plant opened in January and will produce about 48 million gallons each year. So with biodiesel on the rise, could this be the start of a new energy boom coming out of Peru? It is difficult to know.

Pure Biofuels is currently growing Jatropha plants to make its fuel, and might also use algae. The company has already planted 5000 acres with 360,000 Jatropha plants.

The plants are grown for their seeds, which are then crushed for the oil inside. Jatropha can be very easily grown in arid, dry environments, making its potential profitability attractive to a number of countries around the world.

Pure Biofuels claims that it is planting “on marginal land that is unsuitable for growing crops” and therefore argues that their biofuel operation is not taking land away from agriculture– thus addressing one of the major criticisms directed toward biofuels.

But the Jatropha plants might not turn out to be the panacea they are hoped to be. A recent article discusses how despite tremendous interest in the idea, Kenyan farmers have had been challenged to figure out the agricultural requirements for successfully growing Jatropha species and have also found it increasingly difficult to pay for the expensive seeds.

Now the Kenyan government is going to step in and help the effort nationally, although the country currently lacks a substantial internal market for the fuel. Other countries like India have had more success to date using Jatropha plants to make biodiesel, and Peru and Pure Biofuels can only hope to follow in their footsteps, rather than have things turn out badly.

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# David says :
5 September, 2008 [ 00:11 ]

After reading the entire artical it sounds as though these biofuel comanies have not put enough money into Mr. Garcia's pockets. He wants more drilling for oil,(I wonder where that came from?).
 
But nothing on alternative fuels, wind, solar, bio? Yep it's official, He's a politician!

# Steve Stout says :
5 September, 2008 [ 19:10 ]

It's great that Pure Biofuels is planting jatropha in Peru, but common jatropha yields are in the 200-300 gallons of oil per acre.  300 gallons x 5,000 acres = 1.5 million gallons per year, once the jatropha matures after at least 2 years.  This is less than 3% of what they are claiming they will produce next year.  Where will the remaining 50.5 million gallons come from?  Other feedstock oil, such as palm, soybean and rapeseed oil is just too expensive to make into fuel.

Please, continue planting jatropha, but don't make preposterous claims.

# Steve Stout says :
5 September, 2008 [ 19:29 ]

One more point:

Jatropha is typically planted about 8 feet apart, which provides 680 plants per acre.  If Pure Biofuels says they have planted 360,000 plants on 5,000 acres, they are only planting 72 plants per acre.  I hate to say it, but these claims smell like a scam. 

# David says :
6 September, 2008 [ 18:06 ]

Steve,

It sounds like you know a thing or 2 more about all this then I do (not saying much about my knowledge). Where did you gain your knowledge of this product and it's yields?

And how viable do you think this idea is? There is a guy on another forum that raises many doubts on this idea.

David

# Steve Stout says :
6 September, 2008 [ 21:18 ]

I grow jatropha in Africa.  Peru appears to be a very good place to grow jatropha and make biodiesel, I'm just skeptical that that is what is going on here.  I'd sure like to see photographs of these biodiesel plants and jatropha groves rather than the computer graphic conseptualizations seen on thier website.  Can you or someone you know  in Lima take some pictures and post them?

Thanks!

# david says :
7 September, 2008 [ 16:47 ]

Steve,

I agree, real photos should and lets face it would be posted if they were avail.

I check with my resources in Lima and see if anyone can confirm they exist and in the quantity they say.

I'll get back to you in a week or so. By the way, where in Africa are you?

# Renzo says :
8 September, 2008 [ 12:56 ]

Pure Biofuels webpage and research is not accurate.
We are a US private holding and international corporation established here and in Peru and Pure Biofuels does not have the sufficient capacity to produce at such volume magnitude. The feedstock is seriously scarced, the jatropha plantation is real, the just have small lot for the harvest and oilseeds like soybean, palm will become the alternative source for their oil conversion.

Pictures have been edited. Only some show the opening of the plant, which will not be running until next year. Seriously, a huge devaluation will affect their CAPEX. The marketing alternative they are currently working is on the glycerine as the by-product, but once again no one is taking the enough attention and interest on it. Instead the agricultural sector is the one that we must put all efforts and concentration, which will allow the nation to become self-provider of the feedstock (jatropha, soy, palm, etc)

The best recommendation I can give to Pure Biofuels is to stop presenting ficticious facts, colaborate with the communities to expand, improve and benefit the farmers and structure solid foundation on the agricultural sector on the nation (Peru). Pure Biofuels does not imagine the big expense they will incurr on acquiring additional feedstock.

# David says :
10 September, 2008 [ 22:40 ]

Steve,

I asked around and knowone is/was able to varify with any substance that the artical is legit.

As a lay person it all sounds wonderful but when you start finding holes in the story it becomes troubling.

# Steve says :
11 September, 2008 [ 08:12 ]

99% of all biofuels announcements are untrue, especially those about jatropha.  It looks like there is jatropha in Peru, just not from these guys.  We've been growing in Ghana for two years.  In that time at least 20 companies, including D1 Oils, have said they are there, but they've all lied.  It appears that the only real biodiesel plant in Peru is Heaven (www.hepop.com.pe)