British biodiesel firm D1 Oils Plc is entering into joint venture agreement with Chennai-based Mohan Breweries and Distilleries Ltd to produce biodiesel derived from Jatropha, a drought resistant tree, the seeds of which have proved to be an excellent source of biodiesel.
The joint venture company Di Bioenergy Services Ltd, which will be based in Chennai, will produce Jatropha seedlings for supply to farmers, assist them in cultivation and harvesting and undertake refining and marketing of the final biodiesel product, said Mark Quinn, managing director, D1 Oils Plc.
The joint venture agreement, which will be signed shortly, comes after the Tamil Nadu government announced steps last month to popularise the cultivation of Jatropha plants among farmers across the state.
The Southern Railways is also testing the use of Jatropha-derived biodiesel on locomotives.
"The cultivation of Jatropha has the potential both to create much-needed rural jobs and produce a green fuel that will reduce carbon dioxide emissions. India has the potential to be a leading world producer of Jatropha-derived biodiesel," said Quinn, in a statement in Chennai.
He said the joint venture company will also help farmers in marketing the bi-products including seed cake suitable for fertiliser and animal feed and glycerine.
"D1 Oils will provide management expertise, refining technology and R&D back-up," he said.
