Archer Daniels Midland (NYSE:ADM), Daimler AG (NYSEARCA:DIA) and Bayer AG (BAY) are studying the use of the plant. Folks, this is huge. Why?Jatropha, remember it because the stuff will grow and flourish anywhere.
going to study the conversion into biodiesel, Daimler is going to study
its interaction with car engines and Bayer is going to produce
herbicides, insecticides and fungicides for Jatropha plants.
Essentially we have farm to engine collarborative here.
is resistant to drought and pests, and produces seeds containing up to
40% oil. When the seeds are crushed and processed, the resulting oil
can be used in a standard diesel engine, while the residue can also be
processed into biomass to power electricity plants. The best part is
that because it is so hardy, it can be planted on lands that currently
do not have agricultural uses (barren land), bypassing the "food vs
In a statement, the companies said, "Biodiesel
derived from Jatropha nut kernels has properties similar to those of
biofuels obtained from oilseed rapes. It is also characterised by a
positive CO2 balance and can thus contribute to protecting the climate."
is this going to affect ADM in 2008? No. But the big thing is this is a
plant that can be grown in the US Southwest in lands currently
uncultivated due to their climate. This is a long term story and as
time goes by, its significance will grow dramatically.
Disclosure: Long ADM.