To develop a jatropha plantation and extract the oil for transesterification into biodiesel:

The project’s plantation and extraction plant shall be based in Mindanao because of the availability of large tracts of open land, a favorable climate, and relatively cheaper labor. H&WB Corporation has established a partnership with a leading non-government organization (NGO) in the area. H&WB and its partners have identified at least 27,000 hectares of largely idle or under-utilized land in key provinces in Mindanao.

Because jatropha will achieve optimum yield in five years, and most small coconut farmers in Mindanao have stopped producing copra due to low prices, intercropping and integration of the two biodiesel feedstock is also envisioned. In suitable areas, jatropha will be intercropped with existing coconut trees. Further intercropping with small fast-growing and shade-loving cash crops will also be planted to augment the farmers’ income.

The project strategy is therefore to develop a 100-hectare jatropha nursery and use the initial seeds and seedlings for a 1,000 hectare demonstration plantation that will supply the seeds and seedlings for a commercial plant of at least 27,000 hectares increasing to 100,000 hectares in the next three years through five years. While the jatropha plantation is being developed, the oil extraction and transesterification of coconut from existing plantations will be implemented.

The project is expected to commence before the end of -2007 with the processing of coconuts from a 1,600 hectare plantation. The plantation alone is expected to yield at least 8,000 liters per day (LPD) or 2.28 Million liters per year (LPY) of coco methyl ester (CME). The 27,000 hectares of jatropha is expected to yield at least 38.2 Million LPY of biodiesel. Better quality seeds to be produced from the nursery could yield up to three times this estimate. The project’s expected products range from jatropha seeds, seedlings, jatropha oil, CME and jatropha methyl ester (jatropha biodiesel).