GTLESTE BIOTECH Sugar Cane agro-fuels project

Basic Concepts

'Agrofuels' refers to agriculture for fuel, where agricultural products are grown (often in large-scale monocultures, where only a single crop is planted) specifically for fuel and exported out of the ecosystem.

Two types of agrofuels are currently used:

Bioethanol, which is produced from plants with a high sugar or starch content, such as sugar-cane, maize and cassava.
Biodiesel, which is produced from plant oils such as palm oil and jatropha.

These are referred to as first generation agrofuels. Second generation agrofuels include using cellulosic material, and would require less land space. At the moment second generation agrofuels are very expensive, and not yet commercially viable.

Agrofuels can be used in a similar way to other fuels – they can be blended with petrol to run cars, for cooking or to run electric generators.

Agrofuels are often promoted as an alternative to fossil fuels like coal, oil and natural gas. However some agrofuels produce as much greenhouse gases as fossil fuels, particularly when forests which store CO₂ are cut down to develop agrofuel monocultures.

Growing large-scale monocultures, as occurs with agrofuels, can also have a high impact on local ecosystems. Unlike biodiverse environments, monocultures lack the safeguards to protect against pests and therefore require chemical fertilizers and pesticides.

Agrofuels are referred to by some people as 'biofuels', which is a term used to describe many different processes. It can also refer to the small-scale use of plant and animal products (such as husks and dung) for energy. The use of these products for energy is often developed with consideration to their alternative uses as animal feed or to provide nutrients to improve soil.

Agrofuels may also be referred to as a biomass. Biomass refers to living and recently dead plant material that can be used as fuel or for industrial production.

Biogas, methane gas produced by the biological breakdown of organic matter, is one form of small-scale conversion of organic matter into energy currently being used in Timor-Leste.

La'o Hamutuk continues to collect, circulate and analyse information on agrofuels in Timor-Leste to promote accountability and democratic decision-making, as well as to help Timor-Leste adopt the best possible practices for agriculture, energy and guaranteeing the right to food.

GT LESTE BIOTECH Sugar-Cane Plantation and Processing Plants

In early 2008, the Timor-Leste Minister of Agriculture and Fisheries signed a Memorandum of Understanding with the Indonesian company GTLESTE BIOTECH for a $100 million, 100,000 hectare sugar cane plantation, sugar plant, ethanol plant and power generation facility. The project, which will last for fifty years, is planned for Covalima, Manatuto, Viqueque and Lautem districts.

Carabella Jatropha Biodiesel Facility

On 14 July 2005, Enviroenergy Developments Australia (EDA, from NSW, Australia, a subsidiary of the MPI Group) and Daba-Loqui, a Timorese company, entered into a partnership to develop jatropha plantations in Timor-Leste and other territories. They also planned an oil extraction plant in Timor-Leste, to extract oil from seeds of the jatropha plant and convert it into biodiesel fuel.

On 13 February 2008, EDA signed a Deed of Agreement with the Secretary of State for Energy Policy on behalf of the Democratic Republic of Timor-Leste. The agreement allows the company access to 59 hectares of 'industrial land' on the waterfront at Carabella, near Baucau (120km east of Dili). This access will either be through outright purchase or a 30 year lease, with options to renew for an additional 60 years. According to the agreement this was to be arranged by 1 June 2008.

The site will be developed to process jatropha seeds from Indonesia, the Philippines, Malaysia, Thailand and India, as well as from Timor-Leste, intended for markets in Australia, the USA and Europe. A Bio-Diesel Extraction and Refining Facility, Jatropha Pellet Facility and Jatropha Pellet Plant will be developed here, with an estimated capital investment of $550 million dollars over 10 years, with EDA receiving “concessionary tax treatment.”

The government will provide land to the project, and also act as an 'arbitrator' in any land disputes between private owners and the company.

Agro-Fuels projects in Timor-Leste

2008

GT LESTE BIOTECH Sugar-Cane Plantation and Processing Plants

Carabella Jatropha Biodiesel Facility