jatropha outreach international presentation

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Photo: © Heryanto Ardiya, 2007 JATROPHA GROWING IN PARTNERSHIP WITH FARMERS AND COMMUNITY © copyright Dr. Elias Tana Moning M.Agr., Ed. D. Outreach International Bioenergy st Update July 25, 2010

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Our plan to grow Jatropha curcas Linnaeus in marginal land of Flores Island to create and promote sustainable economy for local farmers and help offset the global climatic change.We started planting 142 hectares using Farmer's garden concept during rainy season 2008 which started in November 2007 for Flores, Island. During rainy season 2009 we planted additional 180 hectares, that made our Jatropha gardens become 322 hectares. During rainy season we plan to plant 89 hectares in Palue Island and about 100 more hectares in Flores Island, but unfortunately rainfall is so little during the rainy season 2010 we only grow additional 20 hectares. Up to now we have planted 342 hectares altogether. We characterized our Jatropha Growing Program by the following characteristics:1. Utilize of marginal, critical and under-utilized types of land that are not used for food production, this way we do not interfere or compete with farmers subsistence for food production. We do not contribute to the increasing food prices. Our energy crop does not compete for the same land farmers’ use for food production.2. Apply, in all aspects, sustainable agricultural practices and conservation measures.3. Strictly avoid forest cutting or formerly forested areas for our Jatropha planting.4. Prepare our partnering farmers to become “bosses” of their own Jatropha garden. As a boss farmers have to learn to manage their Jatropha garden and make their garden become productive sustainably.5. Focus in pro-poor orientation through community sustainable economic development and entrepreneurial activities to aim at poverty alleviation.6. Orient our partnering farmers toward a cooperative behavior by sharing 10% of company’s profit with our partnering farmers.7. Fair Trade and Fair Price to partnering farmers. We consider fair price for their Jatropha beans we buy from them is crucial to the success of our program. We want to pay farmer the best price they expect. 8. We plan to run associated program that will bring more income to our farmers and their families. Teakwood growing, Bee-keeping, cattle fattening are some of the spin-off program we would like to do.9. Program should be based on research and meeting farmers’ needs.10. Orientation toward contribution to global efforts to control the climate change.11. Promote Eco-tourism through creation of Jatropha Eco-Village.12. Apply a holistic approach a perception that encourages activities inter-relates to one another, help one another.Questions and feedbacks are welcomed.Elias Tana Moning

TRANSCRIPT

Page 1: Jatropha Outreach International Presentation

Photo: © Heryanto Ardiya, 2007

JATROPHA GROWING

IN PARTNERSHIP WITH FARMERS AND COMMUNITY

© copyrightDr. Elias Tana Moning M.Agr., Ed.

D.Outreach International

BioenergyLast Update July 25, 2010

Page 2: Jatropha Outreach International Presentation

Photo © Elias Moning, 2007

Photo © Elias Moning, 2007

Photo © Elias Moning, 2006

Photo © Elias Moning, 2006

Photo: © Heryanto Ardiya, 2007

Photo: © Heryanto Ardiya, 2007

INTRODUCING …THE JATROPHA PLANT . . .

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 3: Jatropha Outreach International Presentation

What is Jatropha plant? Jatropha names

English name: Physics nut scientific name: Jatropha curcas L. Indonesian name: Jarak pagar Trade name: Jatropha

This plant belongs to Euphorbiaceous family known for its drought resistance characteristic.

It grows well in poor soil where other plant can’t grow.

The plant’s seeds or nuts contain 23% – 25% of non edible oil and a high quality oil source for bio-fuel.

This oil has -2° Centigrade freezing point, a highly wanted characteristic for use as motor vehicle fuel based in the cold weather condition.

Photo © Elias Moning, 2007

Photo © Elias Moning, 2007Photo © Elias Moning, 2007

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 4: Jatropha Outreach International Presentation

Jatropha plant characteristics

• Easy to grow in marginal and poor soil environment

• Drought resistance, it is one of the succulent family, the plant sheds it leaves during drought period and the plant becomes dormant.

• Traditionally Jatropha plant is used for hedgerows. In Mali, Africa and in many other countries, jatropha is grown to protect food crop inside their boundaries from grassing animals.

• Jatropha prefers dry land with little water. If planted in wet soil the plant tend to grow more leaves and few fruits/nuts.

• On the other hands, irrigation during the dry season will improve yields significantly.

Photo © Elias Moning, 2007

Photo © Elias Moning, 2007

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 5: Jatropha Outreach International Presentation

Jatropha Plants Characteristics (continues)

• Jatropha can be propagated using its seeds, sticks, and in vitro (tissue culture).

• In vitro propagation technique will produce the carbon copy of the parent trees, providing a homogenous population with good traits.

• The plant will start to give fruits during the first year.

• First year harvest will be insignificant around 0.5 Ton/Ha.

• Countable harvest of 1.5-2 Ton/Ha may be expected to begin in the third year.

Photo © Elias Moning, 2007

Photo: © Heryanto Ardiya, 2007

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 6: Jatropha Outreach International Presentation

Photo © Elias Moning, 2006

Jatropha Grows in Poor and Critical Soil

Like this dry calcium based soil

Or this peat base type of soil

Photo © Elias Moning, 2006 We will NOT grow our

Jatropha garden on Peat Soil

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 7: Jatropha Outreach International Presentation

Propagation and Productivity

Jatropha produced from in-vitro technique will improve productivity

significantly

Photo © Elias Moning, 2007

With root modification or ex-vitro technique that encourage extensive root-

growth, and so would increase productivity

Photo: © Heryanto Ardiya, 2007

Jatropha planted from a stick, this plant will produce average level of

productivity

Photo © Elias Moning, 2006

Photo © Elias Moning, 2007

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 8: Jatropha Outreach International Presentation

Jatropha is Sturdy and Drought Resistant

Photo © Elias Moning, 2007

A 3 months old Jatropha plant grows very well in a sandy soil just 200 meters away from the ocean beach in Srandakan, Yogyakarta

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 9: Jatropha Outreach International Presentation

Jatropha Grows in Saline Soil

Photo © Elias Moning, 2007

A 18 months old jatropha plant also grows very well in saline, sandy soil of Srandakan beach, Yogyakarta. It has

fruits.

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 10: Jatropha Outreach International Presentation

Our Partnering Farmers: To utilize Marginal/Critical soil to grow Jatropha so it adds Economic Value

to unproductive soil and NO Disruption to Food Crop Production or Destruction to Forest Land Area.

Jatropha Grows in Marginal Land

JATROPHA GROWSIN MARGINAL LAND

Photo © Elias Moning, 2007

Our Farmers PlantJatropha Here

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 11: Jatropha Outreach International Presentation

Our Partnering Farmers: DO NOT Grow Jatropha on Food-crop Growing Area

Jatropha and Food-crop

Photo © Elias Moning, 2007

FOOD-CROP GROWING AREA

Jatropha

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 12: Jatropha Outreach International Presentation

Our Partnering Farmers: DO NOT Grow Jatropha on Cleared Forest Land Area

Jatropha and Forest Land

Photo © Elias Moning, 2007

Jatropha

FOREST LAND AREA

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 13: Jatropha Outreach International Presentation

Age of Jatropha Trees Could Extend Beyond 100 Years

• Based on the found Jatropha garden planted from early 19th Century in Soe, Timor Island, NTT province.

• The girth of one trunk, is about one person hug, and they still grow very well and very productive.

• Jatropha trees in this garden are about over 100 years old.

• This broke our initial assumption that Jatropha need replanting after 50 years of age due to declining productivity.

• Jatropha can grow up much older than 100 years and still productive like the olive trees. Please look at the bottom picture in the left, every branches give fruits.

Photo © Akunada Entete, 2006

Photo © Akunada Entete, 2006

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 14: Jatropha Outreach International Presentation

Jatropha Productivity Increases by age: Older Trees More Productive

• The finding of Jatropha garden from around the turnover of the century in Soe, Timor proves that: production could increase beyond 5 Tons/Hectare/Year after the plant maturity at year five.

• This fact broke our initial assumption about the level of Jatropha OPTIMUM level of productivity estimated at 5 Tons/Hectare/Year with irrigation or about 2.5 M/T per year per hectare without irrigation.

• This finding also indicates productivity level in term of Tons/Hectare/Year after Jatropha plant maturity will keep on increasing, even when Jatropha is planted in non-irrigated soil.

Photo © Akunada Entete, 2006

Photo © Akunada Entete, 2006

Fruits from the very old tree

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 15: Jatropha Outreach International Presentation

Bee-keeping increase Jatropha Production and Farmers Income

• Jatropha female flowers are separated from its male flowers and they need the “work” of pollinator insects to fertilize the flowers.

• bee-keeping activities would increase Jatropha fruits production

• Farmers can milk their honey for additional income.

• Jatropha growing and beekeeping are two activities mutually benefitting to one another

Working bees pollinate Jatropha flowers to produce more fruits

Jatropha female flowers will sustain and bear more fruits with bees pollination

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 16: Jatropha Outreach International Presentation

Community Social Responsibility and Sustainability

• Community Social Responsibility and Sustainability are best done in partnership with farmers and community and grassroots organizations

• Using community development approaches that guarantee all parties benefit

• Will focus on the four pillar of sustainability in all levels i.e.:

• Economy• Environment • Social • Technological

Jatropha planted in the hill- slope terraces in Yunan, China

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 17: Jatropha Outreach International Presentation

Partnership with Farmers and Communities

• The strength of community support will guarantee success and long run operation of this program.

• Planting operation will become much less costly as land ownership stays at the original owners.

• Focus on poor and marginal land to bring in significant benefits economically, environmentally and agronomic soil improvements.

• This project is clearly a sustainable agricultural project that meets all aspects of sustainability requirements.

• A guarantee to bring good short term and long-term profits to the company, farmers and their communities.

Community meeting and organizing will become major part for the success of this

program.

Photo © Elias Moning, 2007

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 18: Jatropha Outreach International Presentation

Optimizing Jatropha Planting Business

• We introduce Co-Enterprising approach that way we can cover more spread and extensive area.

• We focus on unused land, critical land where nobody use them for planting food crops.

• Our company will negotiate umbrella agreement with local and provincial governments that guarantees the government support towards our planting farmers

Critical and unused land like this one in Sikka District, Flores suits well for

Jatropha planting

Photo © Elias Moning, 2007

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 19: Jatropha Outreach International Presentation

Optimizing Jatropha Planting Business:The Teakwood Bonus

• Guarantee the purchase of farmers’ jatropha beans, on the selling side we collect Commitment to Buy (CTB) and Letter of Intent (LOI) from various buyers.

• To motivate farmers, the company will share-crop high value wood crop seedlings of fast growing Teakwood or Jati unggul (Tectona grandis), known for its best quality of wood to be planted in the hedges of Jatropha.

• Teakwood shares similar soil condition and climate environment as Jatropha

• With 100 seedlings of fast growing Teakwood planted in 5 meter distance, farmers will reap additional significant income bonus from Teakwood in 7 to 10 years.

• Fast growing Teakwood could be harvested in 7-10 years will give additional income to farmers a minimum of US$ 12,500.00 of present value from sales of Teakwood .

• It is projected that International teakwood price trend is going to be doubled every 5 years.

Teakwood fits well with jatropha planting when planted in the perimeter.

Photo: Teakwood plantation in Costa Rica

Highly valuable Teakwood to be grown around Jatropha garden

perimeter© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 20: Jatropha Outreach International Presentation

Cattle Fattening Program after Return on Investment (ROI)

• After Return of Investment (ROI) company may launch cattle fattening program to further help farmers to improve their income.

• This Associative Program along with fast growing Teakwood and bee-keeping will help farmers to cooperatively work together with the company.

• This Associative Programs help retain farmers interests in our company.

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 21: Jatropha Outreach International Presentation

Supports for Farmers’ Jatropha Planting

• Governments through their Forestry Offices to give access to use marginal and critical land to farmers for Jatropha planting.

• Outreach International Bioenergy provides training and seeds for planting jatropha and maintaining jatropha plants.

• Outreach International Bioenergy will provide 10% profit sharing incentive to partnering farmers and various involving social organizations and Local Governments for their supports;

• Maintain retention of partnering farmers with Associated Program like Bee-Keeping, fast growing Teakwood and Cattle-fattening

Jatropha nursery to support farmer’s seed supply

Photo © Elias Moning, 2007

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 22: Jatropha Outreach International Presentation

Organic Jatropha Farm• Marginal and critical land are part of

Indonesian traditional organic farming system.

• These land were left intact during the four decades of Green Revolution that damaged the food industry with contamination of manufactured pesticides and fertilizers.

• We plan to maintain the organic characteristics of this land by application of organic farming practices.

• We will use compost, PPGR (Plant Promoting Growth Rhizobacteria), vermiculture or worm-casting, green fertilizers and other organic matters to optimize results and increase productivity.

Organic Jatropha garden in Madiun East Java.

Photo © Elias Moning, 2007

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 23: Jatropha Outreach International Presentation

PGPR or Bacteria “Fertilizer”

Plant Growth Promoting Rhizobacteria (PGPR) is a group of beneficial bacteria that promote plant growth and in line with organic farming.

PGPR functions as “fertilizer” and bio-pesticide

PGPR bacteria application is done through inoculation around the root system (rhizophere) that promotes root growth and supplies of nutrients.

Common PGPR currently used are Mycorhyza, Pseudomonas fluorescens, Pseudomonas putida, Trichoderma sp. and Bacillus polymixa.

control

PGPR treated

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 24: Jatropha Outreach International Presentation

Benefits of Using PGPR

• PGPR ability to produce or change the concentration of the plant hormones indoleacetic acid, gibberellic acid that promotes root growth also cytokinins and ethylene that promotes stems and leaves.

• Allow root system symbiotic Nitrogen (N2) fixation

• Antagonism against phytopathogenic microorganisms (e.g., Fusarium spp. that cause root and leaves to rot) by production of plant protection entities:

siderophores, glucanase chitinases, antibiotics and cyanide.

• Increase solubility of mineral phosphates

and other nutrients to mineral format absorbable by the plant

Control PGPR treated

PGPR treatedControl

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 25: Jatropha Outreach International Presentation

Optimizing Jatropha Garden

Optimizing efforts we chose for obtaining High Yielding Jatropha seedlings from highly productive parent stock.

Use good mother trees like the ones from Soe, Timor Island.

Encourage farmers to grow multiple cropping planted between rows local corn variety “Yellow Piet” to help farmers overcome food shortage.

Our target when the plants reached 5 years old is 5 Ton/Hectare/Year.Photo: © Heryanto Ardiya, 2007

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 26: Jatropha Outreach International Presentation

In Partnership with Farmers

We will provide training and seeds for planting jatropha and assists farmers in maintaining jatropha plants, for the best outcomes.

We guarantee the purchase of farmers’ jatropha beans. Farmers should NOT worry that they grow Jatropha in vain.

We aim long term business relation with farmers for at least 35 years with renewable option. This will be stated in our contract agreement with the farmers.

Community meeting and organizing via local community orgzation will become

modus operandi in cooperating with farmers.

Photo © Elias Moning, 2007

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 27: Jatropha Outreach International Presentation

Farmers Will Get Profit Shares

We will give 10% of company profit shares to partnering farmers. This will be based on the land proportion.

We hire Community Organizers and cooperate with community organizations -- the existing social structures -- of the farming society. They will receive salary and some in-kind incentives.

This approach – along with Jatropha affiliation programs - guarantees farmers retention and loyalty.

Photo © Elias Moning, 2008

Farmers share10%

profit

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 28: Jatropha Outreach International Presentation

Jatropha Planting Benefits Farmers

• Outreach International Bioenergy will negotiate with local and provincial government to provide access to critical, marginal and poor land for the farmers.

• No farmers’ food production land will be disturbed for Jatropha.

• Farmers will enjoy guaranteed income from their jatropha planting.

• Jatropha business brings cash to local economy and will contribute to other social economic improvements in the community.

Photo © Elias Moning, 2007

Unused land at the foothills of Mt. Ebulobo volcano, Bajawa, Flores; suits well for jatropha planting area.

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 29: Jatropha Outreach International Presentation

Jatropha Planting Benefits Farmers

• Availability of cash will encourage other sectors of economy to start moving and create some multiplying effects

• Farmers living environment will significantly be improved

• Farmer quality of life will be improved

• Soil quality and conditions will also be improved, this will open up opportunities for multi cropping with food crops.

• We will promote local improved variety corn “Yellow Piet” or Piet Kuning for multiple cropping.

Ripening Jatropha fruits ready for harvest

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 30: Jatropha Outreach International Presentation

Overall Benefits Jatropha Program

Jatropha improves soil conditions and makes soil more fertile, thus open opportunity for multiple cropping with food or cash crops.

Improved soil condition brings additional income to farmers

Jatropha holds water in upland area that way it reduces chances for flood in low land area.

Jatropha brings cash to the rural area and improves farmers’ family income and moves local economy and brings equality to the rural areas.

Photo © Elias Moning, 2005

Hills covered with imperata grass (alang-alang) near Magepanda will suit well for Jatropha.

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 31: Jatropha Outreach International Presentation

Government Support to Farmers

• Open up farmers access to poor marginal and unused land to be planted with jatropha.

• Provide incentives to farmers to develop jatropha planting.

• Government and farming community will enjoy the multiplier effects on social and economic sector as the results of the increasing of jatropha planting.

• Improvement of local economy will increase government tax-based revenues.

• Improve local food security by supporting local corn variety for multiple cropping

Critical land like this one located in Kotabaru, Sikka, Flores will become good planting site for

Jatropha planting

Photo © Elias Moning, 2007

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 32: Jatropha Outreach International Presentation

Look at this picture

Sketch © Anastasia Liangga Kumala, 2007

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 33: Jatropha Outreach International Presentation

And This Picture

Sketch © Anastasia Liangga Kumala, 2007

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 34: Jatropha Outreach International Presentation

Co-Enterprising Vs Conglomeration Approaches in

Jatropha Planting

Which fits best and benefits farmers?

Co-Entrepreneurship

Sketch © Anastasia Liangga Kumala, 2007

Conglomeration

Sketch © Anastasia Liangga Kumala, 2007

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 35: Jatropha Outreach International Presentation

Fair Trade and Fair Price

• We believe in fair price for farmers’ Jatropha beans we buy is crucial to the success of our program.

• We want to pay farmer the best price they expect.

• We have done sensitivity analysis to see how our selling price of Jatropha oil should reflect in the price of beans we purchase from the farmers.

• Assuming Return of Investment (ROI) should happen during the third or the fourth year. Photo © Elias Moning, 2008

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 36: Jatropha Outreach International Presentation

Fair Trade and Fair Price• if we could sell our Jatropha oil for US $

800.00 to US $ 900.00 per MT we can buy farmers’ beans at IDR 900.00 – IDR 1000.00 per KG.

• As of March 2008, with CPO price at Bursa Malaysia Derivatives (BMD) in the above US $ 1,200.00 /MT, we plan to sell our CJO for at least US $ 900.00 /MT.

• Currently (Mid 2010) there are high demands for Crude Jatropha oil for research and aviation bio-jet-fuel test and the end buyers are offering to pay up to $1,500/MT.

• But as we don’t sell direct we still have to relay on regular traditional price which is much lower.

Photo © Elias Moning, 2007

Photo © Elias Moning, 2008

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 37: Jatropha Outreach International Presentation

Fair Trade and Fair Price

• Fair trade and fair price for every party involves in trading and this count will go on consistently interrelated.

• If we pay farmers’ Jatropha beans more than our selling price we easily buy at loss

• This will affect in prolonging our Return of Investment (ROI)

• Could even push us into bankruptcy.

• Something we should avoid from happening.Photo © Elias Moning, 2007

Photo © Elias Moning, 2008

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 38: Jatropha Outreach International Presentation

Collaboration with Community Organizers

Community Organizers to Identify interested farmers and farmer groups; They collect information about villages, hamlets, potential marginal land for Jatropha planting.

Community Organizers to work together with community leaders so they too are involved in the identification process and become supportive in the continuing of the program.

Community Organizers work with farmers and farmer groups to sign in long-term Jatropha Planting contract that will list farmers rights and responsibilities and benefits promised by the company.

Community Organizers work on commission fee based for recruitment of Farmers, and their salary is profit based of their farmer’s land productivities.

Pertemuan kelompok tani di Banjar Desa Pejarakan, Kab. Buleleng, Bali

Photo © Elias Moning, 2007

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 39: Jatropha Outreach International Presentation

Contract with Partnering Farmers

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 40: Jatropha Outreach International Presentation

Contract with Partnering Farmers

Contract with partnering Farmers is done with Farmer groups and individual farmers altogether.

We use the group support for individual farmers commitment to ensure a long term sustainable working relationship.

Contract will be signed for the first 35 years in order to adapt the UN FCCC REDD carbon sink program.

Contract Extension will be proposed for the next 35 year afterward.

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 41: Jatropha Outreach International Presentation

Local Government Support Land mapping exercise – to identify

marginal land, land that is not used for growing food-crop

To grant access to farmers to these marginal land.

To share land utilization information with us this way we can identify communities to work with us in Jatropha planting program.

Clarify legal definition of use for this land clearly to farmers. Farmers are to have “ the right to use land” not the right to own the land.

In the conservation land, farmers to follow conservation measures in growing their Jatropha.

Benefits to Local Government: tax based revenues will increase with improved farmers income.

Lahan-lahan tidur yang bisa dan patut dimanfaatkan untuk penanaman jarak. Memberikan nilai tambah ekonomi dan koservasi.

Photo © Elias Moning, 2005

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 42: Jatropha Outreach International Presentation

Energy Efficiency and Energy Balance

• The fact, it takes non-renewable energy, i.e. petro diesel to produce Jatropha oil, a renewable source of energy.

• We are aware that in order to produce most of renewable energy the production process requires significant intake of non-renewable energy sources that is petrol oil.

• With this consideration we plan to use small machineries to expel, filter and purify Jatropha oil on location - at the village or sub-district level –

• Mini Jatropha oil processing facility to support a cluster area to cover at least 1,000 hectares of farmers’ Jatropha garden.

Photo © Tracon Rekayasa Industry 2007

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 43: Jatropha Outreach International Presentation

Energy Efficiency and Energy Balance

• We plan to use small diesel powered engines to power our expelling, filtering and refining machines. These mini processing plants will require about 15 liters of diesel fuel in order to produce 600 liters of Jatropha oil in a day, so efficiency and energy balance between renewable and non-renewable oil is 1:12.

• After the second year we plan to modify our diesel engines using dual-tank fuel system with petrol diesel fuel initially runs only during the first half an hour to heat pure Jatropha oil to be used in the rest of engine operation for the rest of the day.

• Using dual tank system diesel engines we can drastically reduce the need for petrol diesel down to 5 liter a day, and this make energy utilization ratio between non-renewable use and renewable oil produced now become 1:120.

Our Jatropha oil processing should take minimum intake of non-renewable or petrol fuel to reduce carbon emission

Photo © Elias Moning, 2008

Single bore low rotation diesel engine for energy efficiency and use of

Jatropha oil.

Photo © Oekotec, 2007

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 44: Jatropha Outreach International Presentation

Energy Efficiency and Energy Balance• We may pursue to modify our diesel

engine to use preheated Jatropha oil using high oil content Jatropha cake, the leftover of Jatropha expelling activities.

• We will explore the possibility of replacing engine cooling water with Jatropha oil that way the cooling process of the diesel engine is done simultaneously with preheating Jatropha oil for combustion.

• When this happen our Jatropha oil processing plant will use 100% of our own produced Jatropha oil and zero petrol oil.

• This way we will use only renewable source of energy from our own production facilities.

Photo © Elias Moning, 2008

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 45: Jatropha Outreach International Presentation

Projected Annual Jatropha Oil Production

With production estimate of 5 Ton/Year/Hectare of Jatropha beans after year 5 of plant maturity, bellow are our projected oil productivity:

Year of Operation Jatropha Oil Production (MT)

Year I 1

Year II 4

Year III 11

Year IV 22

Year V 38

Year VI 56

Year VII 95

Year VIII 95

Year IX 95

Year X 95

1

2

3

4

5

6

7

8

9

10

0 10 20 30 40 50 60 70 80 90 100

Annual Jatropha Oil M/T

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 46: Jatropha Outreach International Presentation

Productivity Estimation

Year of Operation

ITEM I II III IV V VI VII VIII IX X

Newly Planted Area (Ha) 100 150 200 250 300

Total Area Planted Area (Ha)

100 250 500 750 1,000 1,000 1,000 1,000 1,000 1,000

Jatropha Beans Production (M/T) 50 225 575 1,150 2,000 2,950 5,000 5,000 5,000 5,000

Annual Jatropha oil (M/T) 11 51 131 261 455 670 1,136 1,136 1,136 1,136

Monthly Oil production (M/T) 1 4 11 22 38 56 95 95 95 95

Annual Non-Oil collection (M/T) 39 274 344 889 1,545 2,280 3,864 3,864 3,864 3,864

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 47: Jatropha Outreach International Presentation

Ten Year Costs and Benefits calculation

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

YEAR OF OPERATION In US $ '000

No. Item I II III IV V VI VII VIII IX X

1. New Planted Area added every year 100 150 200 250 300 2. Revenue from Sales 5.68 25.57 65.34 130.68 227.27 1,585.23 2,443.18 3,068.18 3,693.18 4,318.18

3. Purchased Beans for extraction ($) 5.56 25.00 63.89 127.78 222.22 327.78 555.56 555.56 555.56 555.564. Jatropha Seeds Production (MT) 50 225 575 1,150 2,000 2,950 5,000 5,000 5,000 5,000

5. Annual Jatropha oil production (MT) 11 51 131 261 455 670 1,136 1,136 1,136 1,136

6. Monthly Jatropha oil production (MT) 1 4 11 22 38 56 95 95 95 957. Sales of Jatropha Oil 5.68 25.57 65.34 130.68 227.27 335.23 568.18 568.18 568.18 568.188. Sales of Teakwood 1,250.00 1,875.00 2,500.00 3,125.00 3,750.00

9. Price of Jatropha Seeds for Saplings 0,28 0,28 0,28 0,28 0,28 0,28 0,28 0,28 0,28 0,2810. PGPR or Bacteria Fertilizer 0,10 0,10 0,10 0,10 0,10 0,10 0,10 0,10 0,10 0,10

11. In-Vitro Lab, Nursery and Acclimatization 1,00 1,00 1,00 1,00 1,00 1,00 1,00 1,00 1,00 1,0012. Transport of plants 0,01 0,01 0,01 0,01 0,01 0,01 0,01 0,01 0,01 0,0113. Irrigation where possible 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00

14. Oil in country Transporting and packaging 0.10 0.43 1.11 2.22 3.86 5.69 9.65 9.65 9.65 9.6515. Oil Extraction cost 0.25 1.13 2.88 5.75 10.00 14.75 25.00 25.00 25.00 25.00 16. Oil Extraction Machines 50.00

17. Jatropha Centre and Offices construction 150.00

18.Jatropha Center Maintenance & Operation 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00

19. Bee-Keeping Program 25.00 15.00 20.00 25.00 30.00 20. Selective Cattle Program 50.0021. Teak Wood saplings 50,0022. Total Cost of Production 356.06 22.27 29.70 38.68 49.57 26.15 40.36 40.36 40.36 40.3623. Gross Profit -350.38 3.30 35.64 92.00 177.70 309.07 527.82 527.82 527.82 527.82

25. Support for 10 Community Organizers 26. Motor cycles support (10 CO) 25.00 27. Field Operating cost support 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00

Page 48: Jatropha Outreach International Presentation

Ten Year Costs and Benefits calculation

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

YEAR OF OPERATION In US $ '000

No. Item I II III IV V VI VII VIII IX X28. Travel                    29. Field Travel from Jakarta 12,00 12,00 12,00 12,00 12,00 12,00 12,00 12,00 12,00 12,0030. Local travel for staff 3,00 3,00 3,00 3,00 3,00 3,00 3,00 3,00 3,00 3,0031. Office Vehicles                  

32. 1 Vehicle Purchase 4 Wheel drive 50.00                  

33. 1 minibus 30 passengers 35.00                  34. 1 Trucks purchase 40.00                  35. 3 Motor cycles for staffs 7.50                  36. Fuel 2.60 2.86 3.15 3.46 3.81 4.19 4.61 5.07 5.57 6.13

37. Operation and Maintenance 5.20 5.72 6.29 6.92 7.61 8.37 9.21 10.13 11.15 12.26

38. Total of Vehicles and cost 140.30 8.58 9.44 10.38 11.42 12.56 13.82 15.20 16.72 18.39                     

39. Salary                    

40. Salaries (5% annual adjustments) 30,00 31,50 33,08 34,73 36,47 38,29 40,20 42,21 44,32 46,54

41.Office equipments, Supplies,                    

42. Computers 5.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.0043. Communications/IT 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00

44.Total Operation and Maintenance Cost 158.76 62.94 67.25 71.73 76.36 79.18 82.18 85.39 88.81 92.48

45.Total Funds Needed every year 587.36 94.35 104.21 115.79 129.46 109.00 126.38 129.77 133.40 137.29

46.Total Funds Needed for 3 Years 785.92  

47. Profits

48. Profit before tax -547.68 -62.28 -34.87 16.39 96.821,478.

222,318.8

02,940.4

13,561.7

84,182.8

9

49. Provision for Tax 4.92 29.04 443.47 695.64 882.121,068.5

31,254.8

7

50. Net Profit after tax 11.47 67.771,034.

761,623.1

62,058.2

92,493.2

52,928.0

2

Page 49: Jatropha Outreach International Presentation

Costs and Benefits calculation

The above calculation is based on assumption of selling price of FOB/Port of Flores, Indonesia US $ 700.00 M/Ton CJO

Purchase price of dry Jatropha beans for extraction is IDRp 1,000 per KG

Jatropha oil extraction rate averages 4 kilograms seeds to produce 1 liter CJO

Jatropha seed production rate begin with 0.5 ton/hectare/year in the first year, and become optimal in the seventh year when production rate achieves 5 M/Tons/hectare/year.

Volkswagen Lupo with Elsbett diesel engine can use straight vegetable oil.

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 50: Jatropha Outreach International Presentation

Cost and Benefits calculation With the increasing age productivity will also

increase, when this situation happens we will reap bigger revenue.

Showcase of two hectares over 100 years old Jatropha Forest in Timor, NTT, tells us the older Jatropha tree the more productive they become.

To encourage farmer’s participation and motivation, partnering farmers will receive 10% shares from the gross-profit, proportionately to their land.

To guarantee high Jatropha productivity, we will to provide our participating partners and farmers with high quality seedlings produced using “in-vitro” or “ex-vitro” multiplication technique. During the first years we still need to use local seeds for making the sapling. Volkswagen Lupo with Elsbett diesel

engine can use straight vegetable oil.

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 51: Jatropha Outreach International Presentation

AREA CHOSEN FOR JATROPHA PLANTING

Flores, NTT South Sulawesi Southeast Sulawesi Bali and Nusa Penida Central Java West Kalimantan East Java

SEVEN PROVINCES TO BE PLANTED

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 52: Jatropha Outreach International Presentation

Profit is NOT EverythingWe Do Care

• We ensure this program is sustainable in all aspects.

• By planting Jatropha we produce green oil that contributes to reduce or slow down global warming

• Linking to Poverty Alleviation efforts in the rural grass root communities of Indonesia through building up their awareness to commit and to contribute cutting down emission of CO2 . The cooling down the Earth is done by poor people in the rural area.

• We support Al Gore’s “Step it up” plan and EU commitment to “Cut Carbon 80% by 2050”.

With Jatropha we help these children have better future

Photo © Elias Moning, 2007

Floating and melting iceberg in north of Newfoundland

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 53: Jatropha Outreach International Presentation

Profits is NOT EverythingWe Do Care

• Register in Forestry Clean Development Mechanism (CDM) of the United Nations Framework Convention for Climate Change (UNFCCC)/Kyoto Protocol so we save our earth and at the same time earn carbon credit for the program.

• Link users of the green oil in Developed countries with farmers/growers in Indonesia in an Eco-tourism program so they can connect and share ideas in a rural village setting about their community efforts to improve their livelihood.

• Profits we made is for use to roll on to another green project and/or expand the size area of the current project.

Photo © Elias Moning, 2007

Hardworking family in Flores, Indonesia

Tour of Jatropha garden in Central Java

Photo © Elias Moning, 2008

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 54: Jatropha Outreach International Presentation

Jatropha Training Center to train farmers, our staff, NGOs, community leaders.

Jatropha Center for Research and Development to develop innovations and strategies to make the best use of Jatropha for mankind.

Jatropha Seed Garden to produce and propagate the best Jatropha seeds for our use and support to our farmers’ need for quality seeds.

Jatropha Demonstration Garden, to put on display the best possible garden concepts. This demonstration garden will also function as field laboratory for training purposes.

We plan to build our Jatropha Center of Excellence where offices, research and development and training activities for farmers, COs and our staff can be provided in the field and at the local level. This R&D and Training Center will be a part of more integrated Jatropha development support system. This will include the followings:

Jatropha Center belongs to Department of Agriculture-BALITRI, Pakowon, Sukabumi, West-

Java

Jatropha Center of Excellence/ COE

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 55: Jatropha Outreach International Presentation

In-vitro Laboratory to produce high quality seedlings of Jatropha and Teakwood using tissue-culture or in-vitro cloning propagation techniques.

Microbiology Laboratory to produce Plant Growth Promoting Rhizobacteria (PGPR) or bacteria fertilizer in order to support farmers’ need for organic fertilizer.

Ecotourism Center to design and promotes Jatropha-based ecotourism.

Jatropha Oil Manufacturing Facilities for oil expelling, oil purifying and oil storing prior to shipment.

Communications of ideas and innovations with farmers is our standard procedures

Jatropha Center of Excellence/ COE

Our first Jatropha Center of Excellence (COE) will be located in Flores.

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 56: Jatropha Outreach International Presentation

Jatropha and Ecotourism Bridging network between user of green oil in

developed countries with farmers, growers of Jatropha in an Eco-Village setting.

Farmers can share about how their Jatropha growing relate to their living improvement and commitment to participate in climate control.

Visit to various tourists’ favorites such as: 3 colored crater lake of Mt. Kelimutu, Komodo Island, Coral reef at Maumere bay and Labuan Bajo, Megalithic culture of Tana Toraja, Ikat weaving of NTT and many more.Ikat weaving, amazing local

culture

Photo © Elias Moning, 2007

Komodo Dragon in Komodo Island near Labuhan Bajo, Flores

Toraja clan house, Makale, SulSel

Photo © Elias Moning, 2007

3 Colors crater lakes, Mt. Kelimutu

Photo © Elias Moning, 2007

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 57: Jatropha Outreach International Presentation

Immediate Funding Needs to Run Operation:

• Planting Jatropha and growing Jatropha in partnership with Farmers

• Prepare seedling/plantlet propagation facilities using in-vitro cloning technique for Jatropha and fast-growing Teakwood

• Funds for purchase jatropha beans from the farmers

• Purchase and Installation of cold press facilities for oil expelling.

• Operate oil extraction• Operate oil transportation

Photo © Elias Moning, 2007

In vitro cloning lab in Lembang, West Java, Indonesia

Oil expelling machines for Jatropha extraction

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 58: Jatropha Outreach International Presentation

We Invite You to Become Our Partner in

Financing Our Jatropha Program

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 59: Jatropha Outreach International Presentation

Immediate Funding needed1. Funding needed immediately for

planting operation; optimize land use for production and

conservation. purchase of Jatropha beans from the

farmers; cover costs of Jatropha oil extraction; purchase of machineries oil processing and storing. cover costs of local transportation of

Jatropha beans building our Jatropha Center of

Excellence (COE) for R&D and training.

2. Any amount of investment would be appreciated.

Flowering Jatropha means good business opportunity

Photo: © Heryanto Ardiya, 2007

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 60: Jatropha Outreach International Presentation

Pre-financing and Off take Buying

Investor can also be our pre-financer and off take buyer at the same time for our Jatropha products.

Investor will benefit for very long time lower price Jatropha products from us and at the same time you help us get started.

Photo © Elias Moning, 2007

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 61: Jatropha Outreach International Presentation

20 Years Contract Purchase Option

• With Contract purchase, individuals or company may go for small investment in our Jatropha growing and oil processing operations.

• We offer the Contract priced € 500.00 per hectare that for 20 years after signing.

• Profits is computed based on the contracted area size, split 60-40 between investor and operator after costs and tax.

• Company that invests in large areas will have the privileged to purchase the oil produced in their contracted area at discounted price.

Old Jatropha tree means we are interested in sustainability and long term relationship

to our farmers and to every party connected with us.

Old Jatropha tree planted early 1900Photo: © Akunada Entete, 2006

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 62: Jatropha Outreach International Presentation

Photo: © Heryanto Ardiya, 2007

We Open to Your

BusinessProposition

s

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 63: Jatropha Outreach International Presentation

Photo © Elias Moning, 2008

Thank you!Any

questions?

Photo © Elias Moning, 2007

Photo: © Heryanto Ardiya, 2007

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.

Page 64: Jatropha Outreach International Presentation

We look forward to do business

with you!

Please contact us:

Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D. Outreach International Bioenergy Email: [email protected] Phone: +62 813 168 321 29 Mobile: +62 819 0555 3773 Local time: GMT + 7 hours Skype: emoning Yahoo Messenger: emoning2000

© Dr. Elias Tana Moning BA Phil., M. Agr., Ed. D.