beyondbrics

Until not long ago it was hailed “the miracle crop”, blessed with unlimited potential for an energy-thirsty world. Jatropha, a biofuel crop loved for its ability to grow in areas not suitable for food, is native to Central America and seemed like a blessing for hot and dry places with high poverty levels, such as certain parts of Mexico. But while the crop has had some initial success, it fell out fashion after a few years when it appeared that it was not as green as some environmentalists and energy experts thought it would be.

However, Jatropha may get a second lease on life. On Monday, Aeroméxico used the biofuel for the first time to power a long haul commercial flight from Mexico City to Madrid.

“This is a landmark,” Gilberto López Meyer, the head of the state-run company running Mexico’s airports and a supplier of aviation fuel, ASA, told beyondbrics.

Last month, the US-based technical standards body, the ASTM, cleared the runways for airlines to fly passenger planes with a blend of renewable fuel derived from inedible plants and conventional jet fuel. Since then several airlines including Air France, KLM, Lufthansa and Finnair have flown planes using the blends, but Aeroméxico was the first to use it for a transatlantic flight.

The move by Aeroméxico comes after Interjet, Mexico’s second-largest airline by market share, flew a plane powered with a Jatropha-blend fuel between Mexico City and Tuxla Gutiérrez, the heartland of the Mexican jatropha – a first in Latin America.

The price of the combustible is several times higher than traditional jet fuel (mostly because it is refined in Texas). Nonetheless, and without subsidies, Aeroméxico has now unveiled a schedule of 52 flights a year (once a week) Mexico City-Costa Rica powered on biofuel starting next month.

The company says that, aside from a marketing strategy of “green flights”, they have a business agreement with the Mexican government to promote the usage of biofuels in the aviation industry, something that they expect would lead to a drop in prices in the medium-term.

“This will help boost the industry. By the year 2015 we are aiming to power 1 per cent of the flights on biofuel and by 2020 15 per cent. This is a strategic goal,” adds López Meyer. The Mexican government aims to produce between 700 and 800m liters of biofuel a year by then, becoming a leading provider of airline biofuel in the region.

The flights underscores Mexico’s determination to build up its biofuel industry. Despite initial hesitation in making the jump into the so-called first generation biofuels derived from sources such as sugar and starch, something that displaces much needed food crops such as corn and soybeans, Mexico is now at the forefront of developing biofuels derived from the locally-sourced Jatropha.

“We see an important potential in second generation biofuels for the Mexican economy,” says Sergio Alcócer, head of energy planning at Mexico’s energy secretary.

However, the local industry is still limited. Mexican President Felipe Calderón, a fervent advocate of food security and the so-called “green growth” (and agenda he is expected to push once Mexico takes the reins of the G20 in November) has opened a biodiesel distillery in December last year located in Chiapas, were most of the jatropha crops are currently planted. The government is also setting up pilot plants while universities across the country – including Oaxaca and Monterrey – have established research centres, and even the state-controlled energy company, Pemex, has plans to invest in the biofuel.

But due to concern over food security – the focus of Mexico’s biofuel push is likely to be on developing second generation – or non-food based fuel – for some time to come.

“Brazil’s case in making ethanol production something cost-effective is exceptional. Jatropha production in Mexico is still young and there are certain concerns about it,” explains Juan Mata, a biofuels expert and high-rank official at Mexico’s environment secretary. ”We are working on sustainable policies for proper production; but there is still some way to go.”

Related Readings:
Brazil’s ethanol production in focus, beyondbrics
Jatropha may be a water hog, FT