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| Economics |
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| Derris Indica –A Viable Alternative? |
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 As the biodiesel industry grows, honing a costeffective
and diverse feedstock supply stands out
as a top challenge. There is a need to diversify the
sources and methods used to generate biofuel
products to achieve food security, energy security
and sustainable development and carbon savings.
Biodiesel producers are looking for alternative
feedstocks which are non- agricultural and nonfood
crops. And D. Indica has the ability to
substitute the requirement of low cost feedstock
with the potential for high oil seed production and
the added benefit of an ability to grow on marginal
land. These properties support the suitability of this
plant for large scale vegetable oil production
needed for a sustainable biodiesel industry.
Here, the key question is: Will it be possible to
establish the right cultivation and processing
methods so that the Derris indica plant can produce
a high-quality fuel which can compete with
petrochemical diesel in terms of price? After all, one
key element that makes all the difference between
success and failure is the cost factor—in other
words,
THE POTENTIAL RETURNS |
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we are not in favor of the implementation of a high-tech agrarian concept that warrants for maximum
input and delivers bumper crops. Contrary, we are looking for a practicable type of cultivation that is
compatible with the routines and possibilities of local farmers, so that the Derris indica plantations can
be profitable for the rural cultivators with a minimum input of men, money and materials.
The CJP experts working on the Derris indica plantation have developed the best method of cultivating
these plants, which require the lowest possible investment of money, labor and materials. |
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Yield is a function of light, water, nutrients and the age of the Plant. Good planning, quality planting
material, standardized agronomy practices and good crop management may handsomely increase the yields.
Derris Indica will yield at Maturity as high as 1000 gallon oil per ha which shall reached as high as 3400 gallon in
15th year with proper nutrition, and irrigation. This is truly an exceptional amount of oil from an agricultural crop.
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| Table 1: Yield Estimates: Derris Indica |
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| Approximate Yield/hectare @625 trees/hectare (estimates)* |
| Optimal yield |
4 year |
7 year |
10 year |
15 year |
| Seed in Shell (Yield) ton |
6.8 |
20.3 |
34 |
68 |
| Seed (46% of Yield) ton |
3.125 |
9.375 |
15.625 |
31.25 |
| oil (36% of seed) ton |
1.125 |
3.375 |
5.625 |
11.25 |
| Meal |
1.906 |
5.719 |
9.531 |
19.063 |
| Protein |
0.953 |
2.859 |
4.766 |
9.531 |
| Starch |
0.953 |
2.859 |
4.766 |
9.531 |
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| Table 2: ECONOMIC: D.INDICA: 10,000 HA |
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| ECONOMICS : Derris Indica 10,000 ha at a glance |
| Year |
4 |
7 |
10 |
15 |
| SALES |
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| Biodiesel |
$8,437,500 |
$25,312,500 |
$42,187,500 |
$84,375,000 |
| Glycerol |
$843,750 |
$2,531,250 |
$4,218,750 |
$8,437,500 |
| Intercrop |
$600,000 |
$600,000 |
$600,000 |
$600,000 |
| Press cake |
$953,125 |
$2,859,375 |
$4,765,625 |
$9,531,250 |
CER‐Revenue
(Biodiesel) |
$112,500 |
$337,500 |
$562,500 |
$1,125,000 |
CER‐ Revenue
(Plantation) |
$200,000 |
$200,000 |
$200,000 |
$200,000 |
| Total Sales |
$11,146,875 |
$31,840,625 |
$52,534,375 |
$104,268,750 |
| COGS |
| Cropcare & harvesting |
$1,550,000 |
$2,450,000 |
$2,450,000 |
$7,000,000 |
| Oil extraction |
$405,000 |
$1,215,000 |
$2,025,000 |
$4,050,000 |
| BIODIESEL |
$1,575,000 |
$4,725,000 |
$7,875,000 |
$15,750,000 |
| TOTAL |
$3,530,000 |
$8,390,000 |
$13,650,000 |
$26,800,000 |
| PBT |
$7,616,875 |
$23,450,625 |
$38,884,375 |
$77,468,750 |
| TAX |
$2,285,063 |
$7,035,188 |
$11,665,313 |
$23,240,625 |
| NET |
$5,331,813 |
$16,415,438 |
$27,219,063 |
$54,228,125 |
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