The not-with-a-bang-but-a-whimper end to BP’s jatropha adventure underscores a couple of key points. First, the inedible but hardy plant that just a few years ago seemed like it could revolutionize biofuels has turned into a bust. The initial attraction was that it grows on marginal land, so it wouldn’t compete with food crops. But marginal land means marginal yields. And jatropha turned out to be a water hog as well, further darkening its environmental credentials.
Second, for all the ink spilt over jatropha—and Big Oil’s interest in biofuels in general—the value of some of those investments really is miniscule. D1 Oils will buy out BP’s half of the venture for 500,000 pounds—less than the price of a nice apartment in London—even though the joint venture is apparently worth more than 7 million pounds.
And this wasn’t a piddling venture, as far as jatropha experiments go: Reuters notes that BP and D1 Oils planted more than 200,000 hectares of the stuff—25% of the worldwide jatropha planting.
Sunday, July 19, 2009
Another "Green" utopian alternative fuel goes bust
Posted by Ben Cunningham at 12:23 PM