In Madagascar, GEM Biofuels will commence commercial production and shipment of crude jatropha oil later this month with 60 tons of oil shipping to Australia and East Germany.
According to GEM, sales are based on individual 'spot' negotiations and do not form part of any on-going contract or off-take agreement. Commercial production is being carried out using a third party oil extraction facility and is generated almost entirely from seeds obtained from the natural forest over which the Company has rights. The company said it anticipates up to 5,000 tons of production under this arrangement. GEM's current planted area is 137,000 acres.
GEM has secured 50 year agreements giving exclusive rights over 452,500 hectares (in excess of 1 million acres) to establish plantations, ranging in size from 6,000 – 125,000 acres with a further 100,000 acres of natural forest containing substantial numbers of mature Jatropha trees.