African Farmers to Grow Biodiesel Crops

Source from:  Tobaccoreporter.com, July 26, 2004 07/27/2004

Malawi-based Stancom Tobacco Ltd. has signed a 10-year plantation management and supply agreement with D1 Oils, a U.K.-based biodiesel firm. As part of the agreement, Stancom-contracted farmers will plant jatropha, a drought-resistant tree whose seeds are a source of biodiesel, on land managed by Stancom. The contract covers 5,000 hectares of land and will expand to 35,000 hectares if successful. More than 27,000 farmers in Malawi and Zambia are expected to be involved in the project. D1 will supply a refinery and other equipment to convert the vegetable oil into biodiesel. D1 will use Stancom’s existing infrastructure. Mark Quinn, CEO of D1, said, “Our agreement with Stancom enables local farmers to get more income, while enabling Stancom to diversify into energy crops. The growing of biodiesel crops will have a significant impact on employment and incomes for local communities.” D1 currently has plantation agreements in Burkina Faso, Ghana, Malawi, Namibia and Zambia, and cooperations in India and the Philippines.