A biodiesel feedstock from "malunggay" oil is seen to emerge as a revolutionary biodiesel raw material as US’s Green Energy Technology (GET) and Filipino firm Secura International Corp. (SIC) are investing $ 30 million in it.

A biodiesel plant using malunggay oil may rise in two years as a memorandum of agreement has been forged between the two companies to put up a plant that uses this indigenous plant’s oil that enjoys accreditation from biodiesel authorities worldwide.

SIC President Danilo M. Manayaga said any type of vegetable oil can actually be used as biofuel feedstock. The malunggay biodiesel, in fact, complies with the US’s American Society for Testing and Materials’s (ASTM) biodiesel standard. This is based on several criteria including viscosity, cloud point, and oxidation.

"Why not? Any vegetable oil can be used for biofuel. Coconut is very expensive, this involves just a tenth of the price (of coconut)," said Manayaga in an interview at the Hybridigm Consulting’s BioOutlook 2008.

However, a crucial factor to the success of this venture, according to Manayaga, is government’s support for farmers’ malunggay planting.

Or else SIC itself may resort to just focusing its efforts in other countries where government support for farmers is present.

"Farmers need help. They cannot borrow money, but we need more investors. It can’t be just one or two (investors). Tanzania and Indonesia are inviting me there. They’re helping their farmers, so we’re moving there. If there’s no support here, how can we move ? Imagine we already have a contract (to supply malunggay oil to a biofuel plant) by 2010. But without government support, what can we produce?"

Manayaga said he appeals for government’s assistance particularly on financing farmers’ planting.

"Nobody’s planting. Government’s support? (IT’s) mere lip service, but it’s not giving any money to farmers.

They should support the farmers because our investors will put up the plant. They’ll only earn a little, but as business partners, they’ll earn higher."

SIC is offering farmers a 25 percent business partnership interest in the project which is an important incentive as it will bring farmers P200,000 earnings per hectare per year.

Manayaga said there is a huge requirement for biodiesel in the Philippines with a 209 million liter requirement at two percent blend. The demand even becomes bigger when the possibility of a 20 percent blend-- as many vehicles are capable of receiving without engine retrofitting— is considered.

Farmers belonging to a consortium have started planting malunggay in targeted areas all over Tarlac, Camarines Sur, Mindoro, Negros, Caragao, and Lanao.

Investors can put up a crushing facility for biodiesel production where there is a 1,000-hectare malunggay area. A malunggay biodiesel plant can have a capacity of 10 million or 20 million gallons a year and can be expanded upon expansion of the feedstock plantation. It is estimated that one hectare of malunggay land can produce 8,000 liters of oil.

A million investment can produce 500 metric tons (MT) of oil per day.

Manayaga said SIC really targets a malunggay farm network of 500,000 hectares. But the world, he said, really needs 60 million hectares to meet biofuel needs.

"That’s what’s presented by (potential investor) CTI Biofuels. Even if you plant the whole Philippines, we can’t meet the world market because it’s a huge market. Our farmers will become millionaires (if they plant it on all our land)," he said.

The plant definitely has a ready market for the biodiesel even as the Biofuel Act grants incentives for this business.

"Oil companies are at the receiving end. Shell is willing to buy if we can produce," he said.

Fortunately, malunggay is a versatile plant that can grow anywhere, except in rice-growing, flooded areas. It can even grow in colder areas as proven by its presence in Tarlac lands that are above 1,200 meters above sea level. The origin of malunggay is in the Himalayan mountains, implying suitability in uplands, he said.

"Moringga (another malunggay name) is a kind of plant that’s very suitable for rainfall of less than 1,000 millimeters a year. It doesn’t need more care or much irrigation. There’s minimal maintenance. Our farmers can plant it once and (keep a consistent) harvest."

While harvesting the oil from the seed, farmers can also tap the leaves as feed meal which is protein-rich. Malunggay leaves have lutein at 700 milligram per kilo of dried leaves.

"Imagine if we produce the oil, then we’ll also have the meal. We won’t anymore have to import soybean meal so cost of production will go down for pork and poultry which will become cheaper (in the market)."