Nairobi — Japanese company, Biwako Bio-Laboratories Limited will invest $20 million (Sh1.3 billion) next year for a jatropha plantation ahead of the production of bio-fuels in the country.

The amount, to be spread out in three years, will go into farm inputs and not machinery, which will have a separate capital expenditure and budget.

Bio-fuels are expected to decrease dependency on foreign oil and contribute significantly to the economy.

The investment will be used to cultivate land for the plantation.

Biwako's Chief Executive Officer, Mr Mitsuo Hayashi, said his company would start with 30, 000 acres.

"The minimum we can start with is a 30, 000 acres of jatropha, but we would want to quickly increase to 100,000 acres," he said.

He said the 30, 000 acres will produce 200,000 tonnes of bio-oil per year.

"We are starting any time now in six months, preparations are on high gear and we'll be rolling out," said Hayashi.

The company will work in partnership with another Japanese company, Hydronet Energy Company Limited and Kenya's Green Africa Foundation.

Foundation Chairman, Mr Isaac Kalua, said the shortage of Petro-diesel and the soaring prices has led to Bio-Diesel as an alternative way.

"Bio-diesel is basically a tree borne oil and the best source of producing bio-diesel is Jatropha curcas, a plant that grows well mainly in tropical climate," he said.

Bio-diesel is environment friendly, given that it comes from renewable resources and has lower emission compared to petroleum diesel.

"We are introducing jatropha curcas as a source of bio-diesel in Kenya because it is affordable and environment friendly," said Kalua.