Food Franchise Finance and Marketing
23 Feb
Bahamas invites Chadwick Bio Oil to build and operate a Bio Oil refinery facility in Nassau Bahamas and in selected outer Bahamian Islands. Bahamas has the natural environment and land requirement for Chadwick Bio Oil refinery to produce bio fuels from discarded used oil and with selected agricultural selected vegetation (weed) actually grown in the Islands. Chadwick Bio Fuels has been approached for Chadwick Bio Oil technology of existing and new hotels and resorts.
Bahamas has the natural environment and land requirement to produce bio fuels with selected agricultural and selected vegetation (weed) actually grown in the Islands. To name a few, Copra (coconut oil), Jatropia, as well as a flax Camelina needing little water and nitrogen, and many other weeds that have not been discovered.
Combined with soya beans which are a plentiful commodity may be used alternatively in delivering a steady uninterrupted production.
There are great opportunities to utilise the various home grown products for reusable fuels such, Diesel Oil and Jet fuels, and also used transport and electricity production.
Though its lower local cost, other benefits include the support to local agro-industries and a decrease in emissions.
The use of bio oil refinery to bio diesel in smaller island Countries is nearly as old as the diesel engine itself, as Mr. Diesel designed his original engine running on peanut oil. During periods in history when regular diesel supply was hampered seriously such as during World War II, throughout the world vegetable alternatives from different sources and indifferent forms have been used.
Large and Small Countries are making Bio Diesel Fuels for local solutions. Small countries import their fuels at very high transport costs; it makes economic sense to find local fuel supplies. Even though the Bahamas islands on a world-scale do not contribute much to the emission of greenhouse gasses, their case for mitigation assistance under the Kyoto Protocol becomes much stronger if they simultaneously look for environmentally beneficial alternatives to fossil fuels. The traditional production of copra (flesh from a coconut) and its oil, an industry inherited from colonial times, has been suffering from low world market prices and high transport costs. In a number of countries, the copra industry is nearly extinct, especially through the high inputs of labour required, with low return. By switching to mechanised production of local fuel substitutes instead of focusing on highly competitive exports, economic niches can be found on the islands themselves
There are a number of ways in which vegetable oils such as Jatropha and coconut oil can be used in compression engines (See Jatropha and Coconut Oil Fuel Technology). Another promising technology includes straight gasification of whole coconuts; however this requires further technological development. Jatropha is presently used in many countries including Canada in the making of Bio Diesel Fuels.
Coconut Oil and Economics of Copra
The world production of coconuts in copra equivalent has been floating around 10 million tonnes per year. Of this market, between 1 and 2 million tonnes has been traded on the world market. Figure 4 shows the volume of the global copra oil market and the
Associated price per litre over the last 10 years.
The price fluctuation of coconut oil has been significant, between 0.3 and 0.7 US$/litre. The export market consists mainly of industrial processes that can use other vegetable oils if the world price for coconut oil is high. This can be seen for example 1999 when there was a worldwide shortage of coconut oil. The world market price is therefore also very much linked to the prices and yields of other oils such as palm, corn and canola.
One of the reasons why the copra oil industry in many island countries is non existent is because there is relatively little opportunity for economies of scale. Because of the low return for the harsh work involved with the cutting and drying of copra, many rural farmers are diverting to other cash crops, leaving coconuts un harvested in plantations.
The further rationalisation and mechanisation of the coconut oil supply chain will increase the security of supply; however this requires significant investment in the coconut oil sector. After restructuring and replanting of coconut plantations, the Bahamas islands have the potential to provide one third to half of their current diesel imports.
Environmental Benefits
The widespread use of Coconut Oil to replace diesel has a range of potential
environmental benefits. First, there is the decrease of emissions of poisonous gases and particulate matter as compared to diesel, through the higher oxygen content of coconut oil. These benefits however do not materialise so well using straight vegetable oil in standard engines [8]. Secondly, the use of coconut oil can be considered CO2 neutral. The CO2 stored in the coconuts, husks and shells are used in the process of oil production (husk and shells for drying the copra) and burning of the oil.
This CO2 is again sequestrated during the growing of new trees and nuts.
Socio-Economic Benefits include, creating a local industry that substitutes fuel imports, benefits fragile Caribbean countries substantially through improvements in balance of payments and job creation. Simultaneously, coconut farmers are given access to a new, potentially booming market once the difference with the benchmark of the diesel price further increases.
Interested Individuals may inquire to this article at info@metropolitanfoodgroup.com Direct info@chadwickbiooil.com