JATOIL LIMITED
Business Models to Attract Investment Into Jatropha
JAT - 2nd Generation Energy Crops: Jatropha World Summit 2008, Bali - Dr Michael Taverner, Executive Chairman
Tue, 2 Sep 2008 05:55PM
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Dr Michael Taverner
Tue, 2 Sep 2008
05:55PM Australia/NSW
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JATOIL LIMITED (JAT)
ASX code: JAT
Website: http://www.jatoil.net
Industry: Energy
Principal Activities:
The Company's Business is to pursue opportunities in the markets for biodiesel and biodiesel feedstock.
Address:
56 Pitt Street, Level 5
SYDNEY
NSW
Phone: 02 9571 8300
Fax: 02 9571 8200
Executives & Directors
Mr Michael Taverner , Managing Director, Executive Chairman
Mr Ross Kestel , Non Exec. Director
Mr Tom Hancock , Non Exec. Director
Mr Phil Hodgson , Non Exec. Director
Mr Emmanuel Correia , Company Secretary
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Company ASX Announcements
Company ASX announcements can be viewed on the ASX website.
Announcements from the preceding six months are shown below.
Please refer to the relevant stock exchange if any of the above information is incorrect
JATOIL LIMITED (JAT) Events
Australia/NSW
JATOIL LIMITED (JAT)
| 2008 AGM Presentation | Mon, 17 Nov 2008 |
| 2008 AGM Results | Mon, 17 Nov 2008 |
| Asian Renewable Fuel Opportunities and Project Updates | Mon, 10 Nov 2008 |
| Appendix 4C | Mon, 27 Oct 2008 |
| 2008 Annual Report | Tue, 14 Oct 2008 |
| Notice of 2008 Annual General Meeting/Proxy Form | Tue, 14 Oct 2008 |
| JAT Newsletter October 2008 | Thu, 9 Oct 2008 |
| Appendix 3X | Wed, 1 Oct 2008 |
| 2008 Annual Financial Report | Tue, 30 Sep 2008 |
| Director Appointment | Mon, 15 Sep 2008 |
Please note: This company appears on this website as a result of its listing on the Australian Securities Exchange. Boardroom Radio does not claim any association with any company listed on this site.
INTERVIEW WITH MICHAEL TAVERNER, EXECUTIVE CHAIRMAN OF JATOIL LIMITED (JAT)
“Business Models to Attract Investment Into Jatropha”
http://www.brr.com.au/event/50827
TUESDAY, SEPTEMBER 2, 2008, 5:55 PM.
BRR Good afternoon and welcome to Boardroom Radio. Today, we are speaking with Dr. Michael Taverner, Executive Chairman of Jatoil. Thanks for joining us
10 today, Michael.
JAT Thanks, Eddie.
BRR Michael, we see recently you have attended a conference in Bali. Could you give us some detail of what this conference was about?
15 JAT Yes, Eddie. The conference was called Second Generation Energy Crops and subtitled Jatropha World Summit 2008, and I guess it is really recognizing that jatropha is very much a second generation feedstock for the biofuel industry.
20 BRR Michael, what was the general sentiment to come out of the people who were attending there?
JAT Well, it is about the fourth or fifth Jatropha World and Jatropha Summit that I have been along to, and the sentiment of this one is very much more around the reality of the industry. Earlier meetings had been probably optimistic
25 though. It is the kind word to say in terms of the expectations around the industry. I think as a whole the industry is now becoming a lot more informed about jatropha and the ability of jatropha businesses to deliver through to the marker, understanding a lot more about the risks in the business and understanding a lot more about the demand in the business. To me, the
30 meeting was very much an endorsement of the business model that jatropha has adopted.
BRR Biodiesel has certainly had its fair share of bad press of late. Coming out of this conference, what was the general sentiment?
35 JAT Well, biofuels have had some adverse press in relation to the food to fuel debate and in relation to environmental issues. As I said before, Jatoil business model is very much around sustainable models, and one of the key points that came out of this conference is the necessity to understand that there are differences between the different feedstocks that go into biofuels
40 and the reason that we have chosen jatropha is that it bypasses some of the original criticisms around biofuels in the grazing areas where food crops generally do not grow, so it is not competing with the food crop. Generally also, we have strong principles that means that our crop is planted in areas that do not require much clearing or certainly no deforestation. We believe
45 that with jatropha, we have got a feedstock; we have got an industry here that in fact overcomes a lot of the current community concerns around biofuels, and one of our strong objectives at the moment is actually to communicate to the market that there are differences in the feedstocks for biofuels and that jatropha is a very acceptable one.
The market is appreciating that and there are still very strong credentials for jatropha as a feedstock. Firstly, it is cost-competitive. There were some data that came out of the meeting that indicated the potential cost of biodiesel from
5 jatropha is still considerably cheaper than that from soy or grape seed and certainly from palm oil. So fundamentally, we could have a cost-effective feedstock. Secondly, also, we have got a feedstock that the market is becoming more interested in. I guess one of my take-homes from the meeting is that in terms of appeal to the market, what we understand now is that
10 strategic investors in this market are ready for investment. They need to secure feedstock for their businesses and they are prepared to share some of the risks with Jatoil in providing that feedstock. There is increasing market appeal from sources as varied as mining industries that need to secure cheaper and sustainable alternative energy stock. The aviation industry has
15 been reported recently, looking more closely at jatropha as a feedstock for what we call biojet fuel, and already airlines like Virgin and Air New Zealand recently have indicated that they are going to be trialing jatropha as a feedstock for some of the jet fuels they are using.
20 So, all this says is we have got an attractive business model for jatropha that is supporting, perhaps, a more attractive biofuel model overall.
BRR Michael, what was Jatoil, as a company, able to derive from this conference?
JAT I guess what we look for in all these meetings is information about the market,
25 information about the technology of producing the oil and processing the oil, and importantly and probably most importantly it is around the industry networks. Our company at the moment is in the stage of negotiating with and understanding the supply chain partners that our company needs to take this business forward. So, it is in around meeting the supply chain partners,
30 understanding the technical expertise that is out there and moving that forward into business relationships.
BRR Michael, you talked about the progress of your company and we see that you have formed some important joint ventures in Vietnam. Can you give us an
35 update of where Jatoil is currently at and where they are moving forward?
JAT Our joint venture in Vietnam with GreenEnergy Vietnam is a great example really to us of some of the components of a good business model, and many of the components of our Vietnamese operation reflect those aspects of a good business model for jatropha. That is, that the partners over there are
40 what we call pretty deeply embedded into the local market, and importantly in a country like Vietnam, also embedded into the government resources and technical facilities that are in Vietnam so we have got strong support on the ground. Importantly, also, they have very strong partnerships with groups that are aligned to our principles of sustainable jatropha production and we
45 strongly endorse the principles for sustainability. Our partners in Vietnam have got some great partners to drive those sustainability principles. The other feature of the partners in Vietnam is that they have already got a very strong sense of supply chain for jatropha oil leading right through to biodiesel based on jatropha, but we now have through our joint venture there some extraction facilities for the jatropha seed for oil from jatropha, and so it would not be long before we will be incorporating small amounts of jatropha oil into our retail stream for biodiesel in Vietnam. Now, this is currently small-scale but it is a strong demonstration within country that we will have the capacity
5 both to produce the oil in a sustainable fashion and at a cost-competitive price but also we can extract the seed, we can process the oil and we can incorporate it right down to what the customer needs in terms of biofuel. Other strong points about the joint venture in Vietnam is that it does have a very high standard of management. The guys that we are working with over
10 there have been in country for up to 10 or 12 years. They understand they are embedded in the local market and they have got some strong relationships that again have helped drive that company. Each time we go to these meetings, each time we engage more technical expertise, we just get a better understanding of the risks involved in this business and a better capacity to
15 manage those risks. I suppose one other strong point about the conference and a takeaway from the conference is that jatropha, I call it an industry, it is still very much an infant industry and the more we can work together across countries, across companies, and even across some of the feedstock industries to improve our knowledge, the better chance we are going to have
20 in succeeding.
BRR Michael, certainly some promising news coming out about the jatropha industry as you put it from this conference. We thank you for your time today and look forward to speaking to you soon.
25 JAT Thanks, Eddie.
BRR That was Dr. Michael Taverner, Executive Chairman of Jatoil. If you have any questions about this broadcast or any other broadcast, please feel free to contact us on brr@brr.com.au. I am Eddie (Inaudible) (0:08:26) and thank
30 you for listening to Boardroom Radio.
INTERVIEW CONCLUDED
Contact brr@brr.com.au for more information
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