BIO-FUEL CROPS PRODUCING BIO-DIESEL

The company now boasts 22 employees,

including scientists, farmers, international

businessmen, industrial workers and of course

family.

GreenEnergy`s corporate mission aims

to bring large tracts of rural land under

scientific but basic cultivation of bio-fuel

feedstocks, bringing with it employment and

entrepreneurial opportunities to potentially

thousands of Vietnamese rural poor, while

providing inputs for GreenEnergy`s core

business, the refining and marketing of bio-

diesel.

It is a win, win situation for everyone because

not only does cultivation of this vegetable oil

require only marginally arable, war damaged

or barren land, this also means its activities

do not compete with other food production

which avoids putting upward pressure on

food prices.

N.B (Vietnamese Government has identified

seven million hectares as marginal, barren or

war damaged land).

In addition GreenEnergy`s operations achieve

a renewable and sustainable fuel source for

Vietnam to continue its development with all the

attendant social, economic and environmental

benefits in producing clean energy.

Because of the scale and potential of the bio-

diesel industry in Vietnam and indeed globally,

where tens of millions of bio-fuel crops will

have to be grown to substantially replace fossil

fuels, a ‘second green revolution’ is possible,

bringing with it true improvement in the lives

of the rural poor and vegetable oils can play a

significant role in helping to ameliorate global

warming as a key aspect of climate change.

Global warming, a key aspect of climate

change, now clearly recognized as a result of

a concentration of greenhouse gases (GHGs)

in the atmosphere - has the worst impact on

the climate.

Carbon dioxide, the most common of GHGs, is

emitted during the burning of fossil fuels.

The Kyoto Protocol gazetted in February 2005

requires participating countries to cut carbon

emissions.

Further to this, rising crude oil prices and the

need to reduce dependence on imported oil has

made it necessary for net oil importers to think

of alternative energy sources. The precarious

situation with fossil fuel supplies coupled

with the ability of bio-fuels to lessen that risk,

makes it feasible for the global economy to

revert its focus towards agriculture and those

traditionally engaged in it, thus offering a

potential boon to Vietnam’s rural sector.

Full bio-diesel use would reduce net CO2 by

over 78% compared to petroleum diesel and up

to 16% with the use of blends comprising 20%

bio-diesel.

While both fuels are almost equally efficient

at converting raw energy resources into

fuels, bio-diesel has a larger part that is

renewable .Similarly, bio-diesel is non-toxic

and environmentally friendly as it produces

substantially less CO2, ensuring sustainable

environmental practices.

GreenEnergy has recognized this mammoth

task and has adopted a dual strategy for

attaining its goals in Vietnam.

1.Public – Aggressive initiatives to “jump-

start” the production side of bio-fuel feedstocks

by forming a partnership with Vietnams Central

Government and People’s Committees as well

as aid agencies to help put large tracts of

marginal land under bio-fuel crop cultivation

quickly.

A memorandum of understanding and support

was signed by the Peoples Committee of Binh

Dinh Province and Green Energy Vietnam on

the 8th of December 2006 and the 500 hectare

Binh Dinh Research and Training Facility

for the Cultivation of Biofuel Feedstocks has

been established, known as BDF - FARMER

ENERGY - a working laboratory devoted to

developing the bio-fuel industry for the benefit

of Vietnamese rural poor.

2.Private – Includes GEV investments to retain

its ‘First Mover’ advantage by securing its

proprietary feedstocks, expanding its physical

plant refinery presence and continuing to build

its integrated supply-chain, complete with

forward contracted suppliers and customers.

It is in this first arena, Public Initiatives,

that GreenEnergy sees co-operation with aid

agencies.

Some of the substantial and sustainable

benefits that the cultivation of bio-fuels crops

can contribute to Vietnam are:

1. Real cash growth, raising the annual income

of $820 to $1,300 U.S. for thousands of

marginalized rural families.

2. Private homesteading for the rural poor.

3. Stress relief and barren or war damaged land

reclamation.

4. Enfranchisement of poor, rural women.

5. Retention of scarce foreign currency

reserves and

6. Independence from the uncertainties of

global mineral oil markets.

The People`s Committee of the Province of

Binh Dinh and GreenEnergy, Vietnam, in

full realization of the enormous impact this

Research and Training Facility will have for

all of Vietnam`s rural communities, cordially

invites any and all organizations seeking

positive change in the livelihood of rural

Vietnamese to form an active Partnership in

the development of this Research and Training

Facility.

The Binh Dinh Facility wants to be a catalyst in

harnessing this opportunity for all stakeholders

and delivering:

. A path for the rural poor to climb out of their

deprivation rather than fall further behind.

. A renewable, sustainable and viable alternative

to fossil fuel for Vietnam’s surging economy.

and an industry that rejuvenates, rather than

degrades the environment.

Introduction to the oil plant Jatropha.

The oil plant Jatrophas curcas (L) (Jatropha)

or physic nut, is multipurpose and drought

resistant, growing to a height range of 2 to 7

metres for the Asian species and it not only

flourishes in tropical and sub-tropical climate

zones but even in areas absent of water.

Because its leaves and stems are toxic to

animals it is often used as a protective hedge

around farm houses, gardens and fields.

It also reduces soil damage caused by erosion

from wind and water and traditionally the

seeds were harvested by women for medical

treatments and local soap production.

In Thailand, Jatropha normally flowers twice

a year, in dry and rainy seasons with seed

harvesting conducted approximately 60-90

days after flowering and the oil plant has a

productive life of 20 years.

Because the market is probably not yet mature

enough for the plant to generate enough

income solely from oil extraction, a holistic

rural development approach has to be taken

into account in order to exploit all potential

uses of the Jatropha plant. This approach is

known as the Jatropha System.

The system focuses not only on the use of

the source as a fuel, but rather as an element,

to activate a system combining ecologic,

economic and income generating activities.

Consequently, the Jatropha System offers four

main aspects of development aiming to better

the livelihoods in rural areas, especially for

women and farmers:

. Renewable energy - bio-diesel

. Erosion control and soil improvement

. Promotion of women and

. Income generation.

About one-third of seeds can be extracted as

oil that has a similar energy value to diesel

fuel. The oil is extracted by hydraulic pressure

and then filtered through an intensive sleeve

that can then be readily used without any

complicated refinery process, directly available

for small diesel engines as a substitution for

diesel oil, without engine modification.

This oil can power engines, such as water

pumps, tractors, hand mowers, other farm

machinery and rice milling machines and

by using this domestically produced oil as a

substitution for imported oil, significant cash

savings can be made.

GreenEnergy Ltd have already committed

a considerable amount of time, money and

resources to this environmentally sound an

economically sustainable project in Vietnam

and welcome further input from other interested

parties.

It is also their belief that at an international level,

stakeholders involved should perform a three

pronged approach, with mutual knowledge,

technology transfer, genetic development of

high oil content in the seeds and exchange of

Jatropha species, together with investment

and trade linkage.

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