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Strategies for Financing
Companies and organizations wishing to secure financial for Jatropha ventures can either obtain it though loans or by the equity route.
- Loans – loans can be obtained from a variety of banks. Please contact the specific bank for their terms and conditions
- Private and public retail banks
- Specialised banks (Eg NABARD, an Indian bank focused on agricultural development). These banks usually partner with governments in distributing special loans for projects such as Jatropha biodiesel. Some governments, including India, are keen on providing credit facilities to farmers to cultivate Jatropha. Established companies exploring Jatropha also find the bank credit route to be a viable option, especially if they are looking to raise large amounts of funds. For instance, Emami Biotech, a company belonging to a prominent Indian business group, preferred to go the bank loan route when it was looking to invest about $100 million in Jatropha plantations in Ethiopia, and was keen to get 70% of the total investments funded through bank loans.
- International development banks such as the World Bank, Asian Development Bank
- Government Grants
- Equity – while there has been little financing from the traditional venture capital firms, considerable interest has been shown by the private equity firms. In some cases, funding through the equity route has come by through acquisitions. For instance, For instance, in Aug 2007, Energem Resources of Canada acquired a 70 per cent stake of shares in a renewable energy venture inMozambiquefocussed on Jatropha biodiesel. Another example of acquisition-based equity funding happened in the caseIreland’s South Cone Agriculture, a developer of Jatropha plantations. Integrated Biodiesel Industries acquired a 10 percent stake in South Cone Agriculture, and South Cone planned to use the funds from the investment to develop plantations inAngola,BrazilandArgentina.
- Governmental schemes – these could be either following the equity route or the debt route, or these could be special grants. For instance inTanzania, the US Government granted $5.4 million to the Tanzanian government for a project to establish a model for Jatropha farming in the country. The grant was provided under the Jatropha agriculture and nutrition initiative (JANI) project of theUSdevelopment agency, USAID. The project planned to provide employment and assistance to thousands of farmers and is expected to run until 2012.
Related Links
- Introduction to the Biofuel Industry
- Properties of Jatropha
- Characteristics of Jatropha
- Extracting Jatropha Oil
- Pre-extraction of Jatropha Oil
- Extraction of Oil from Jatropha Seed
- Filtration & Purification of Jatropha Oil
- Clarification of the Oil
- Getting Clean Jatropha Oil
- Refining the pure Oil
- Typical Processes & Equipments for Jatropha Oil Refinery Plants
- Removing the toxins from the Meal
- Uses of Jatropha Meal
- Properties of Jatropha Oil
- Global Biodiesel Production and Capacity
- Global Market View on Jatropha
- Strategies for Financing
- Status of Jatropha in Asia
- Status of Jatropha in Europe
- Status of Jatropha in Africa
- Status of Jatropha in South America
- Status of Jatropha in North America
- Status of Jatropha Oil Production in India
- Genetic Engineering in Jatropha
- Status of Genetic Engineering of Jatropha in India
- Present Market Scenario for Jatropha
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