Gatonye Gathura
19 November 2007
Nairobi — The first large scale commercial operation for the production of biodiesel in Kenya will get under way within six months according to visiting Japanese investors.
Mr Mitsuo Hayashi, the chief executive officer of one of Japan's biggest biodiesel producers, Biwako Bio-Laboratory Inc. said the company plans to establish 30,000 ha of Jatropha curcas trees, expanding them to 100,000 ha within 10 years.
When fully operational, the project will employ some 10,000 workers.
"We have been in the country in the last few days doing a feasibility study and are assured of availability of land and human skills and plans to start operations within the next six months to a year," Mr Hayashi told a press conference in Nairobi yesterday.
The 30,000 ha will be able to produce some 200,000 tonnes of biodiesel per year. The CEO was accompanied by the MD of another Japanese firm, Hydronet Energy Company, Yoshihisa Ohno with whom they plan to jointly start the Kenyan operation. The team, which has been in the country for the last four days, held talks with several Kenyan Government officials and the private sector on the possibility of setting up the commercial operation.
"We have managed to talk to the head of the Public Service, Fancis Muthaura, ministries of Agriculture, Energy and Regional Development, Kenya Investment Authority, TechnoServe Kenya, KenGen, Green Africa Foundation and the Japanese ambassador to Kenya," said Mr Hayashi.
Green Africa Foundation is the official lead agency in coordinating the development of a viable biodiesel sector in the country.
So far, says Mr Isaac Kalua of the foundation, the country has less than 5,000 ha of the tree, jatropha, which is not able to support commercial production of the fuel.
Out grower scheme
"In that case, it is only logical for Biwako to start with the establishment of tree plantations and then later, we can move into an out growers scheme as happens with other major cash crops," said Mr Kalua.
An official from the Kenya Investment Authority, Guracha Adi, said they would fast-track the paperwork and complete these formalities within a short while.
"We know neighbouring countries are competing strongly to attract investors in biodiesel production hence we plan to retain a competitive edge over them," he said on Sunday. Biwako, which has operations in Japan, The Philippines, Indonesia and Cambodia, says it is willing to assist Kenya in the formulation of a biodiesel policy and product standards.
Separately, Britain has urged Saudi Arabia and other OPEC oil producers to pump more oil to reassure financial markets, Treasury officials said ahead of the G20 meeting in South Africa.
The British Finance minister told the meeting of leading developed and emerging nations on Saturday that more action is required to improve transparency and regulation on oil markets.
"Well-functioning markets are central to our objectives on energy and climate change," Darling told the summit, according to a text of his speech.
"The international community has acted to improve the functioning of the international oil markets but prices remain high and volatile. There is much more we can do."
Oil prices have soared to close to $100 a barrel in recent weeks, worrying heavily-industrialised nations already expecting weaker economic growth and central bankers who are worried about rising price pressures.
Additional reporting by Reuters
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