The next join venture represents the largest investment of an oil major in Jatropha. Repsol (www. repsol. com) and the Mexican KUO Group each own a 50% stake in KUOSOL, headquartered in Mexico, capitalized with an initial investment of $80 million. The company is developing new plantations of Jatropha for the production of second-generation biofuels. The Jatropha will be cultivated on barren land in the Yucatan state of Mexico. This project meets the environmental and social sus­tainability criteria as defined by the Renewable Energy Directive of the European Parliament, required for all biofuel projects of both companies.

Repsol boasts a long history and extensive experience in researching, developing, and marketing biofuels worldwide. In April 2010, Repsol created its New Energy Unit to identify and develop businesses related to bioenergy, renewable energy for trans­port, and other areas which present synergies with the company’s existing activities. The KU O Group is one of Mexico’s largest conglomerates, with businesses interests in the aerospace, automotive, chemicals, foods, and agriculture industries, amongst others. Its main objective is the use of integrated biomass plantations of Jatropha curcas oil to generate biofuels and bioenergy in a sustainable manner.

The objectives are:

• To plant and cultivate 10 000 hectares of Jatropha in the Yucatan, principally on third-party lands in this area, which will represent a positive impact on rural communities, and to harvest 44 million liters of crude oil for biofuels.

• Integrated use of biomass from forest plantations, cogeneration of steam and electricity for self-supply, with surplus production sold.

• Generate more than 400 direct jobs and 2000 temporary jobs. It is estimated that agricultural development will be completed in 3 years, allowing industrial production to start in 2013.

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