Jatropha Plantation Carbon Credits
The addition of Mycorrhizal fungi to the Jatropha plant at the planting stage assists the sequestration of carbon in the soil over the lifetime of the plant (40-50 years) and thereby can qualify a Jatropha plantation for Carbon Credits.
Carbon Credits :
The Kyoto Protocol, which was initially adopted in 1997 and then signed and ratified by 187 countries in 2009, incorporated three market based mechanisms to assist treaty countries in achieving their emission targets–emission trading, clean development mechanisms, and joint implementation. These market based mechanisms also created the opportunity to pursue renewable energy projects and generate additional revenue. Our research has identified the opportunity for GLE to participate in these market based mechanisms.
Carbon Sink Credit :
The company’s Jatropha trees provide a source of CO2 sequestering thereby generating significant revenue in the form of carbon credits. Our Jatropha plantations are grown on formerly wooded savannah vegetation where our research has demonstrated an optimum density of 1,500 Jatropha trees per hectare. Each Jatropha tree should sequester a minimum of approximately 0.5 tons of CO2 in its 40 year life span. Even with carbon credits trading at approximately $30 per tonne, this additional revenue adds significantly to an already profitable business model.
Carbon Offsets :
Jatropha oil and biodiesel create an offset value, against the use of fossil fuels, which will result in the generation of additional carbon credit revenues. For example, it is known that the CO2 emitted from each liter of petroleum diesel is 2.7 kg; therefore, the production of approximately 30,000 tonnes of Jatropha biodiesel will offset close to 81,000 tonnes of CO2.
Biodiesel reduces life cycle carbon emissions by 60 to 80 percent, depending on the source, making it the best carbon reduction tool of any liquid fuel commercially available. It has the highest energy balance of any fuel, returning 4.5 units of energy for every unit of fossil energy needed to produce it.