CPC in talks to plant jatropha for biofuel in Indonesia or Cambodia

Taipei, Bloomberg -CPC Corp., the state-owned Taiwanese oil refiner, said it's in talks to plant jatropha trees in either Indonesia or Cambodia for biofuel at a cost of "billions" of Taiwan dollars over the next six years.

The refiner is seeking to grow up to 50,000 hectares (123,550 acres) of jatropha trees as the island aims to cut dependence on fossil fuels and reduce carbon emissions, CPC Vice President Arthur Kung told reporters yesterday. Seeds harvested from jatropha trees yield oil used in the manufacture of biodiesel.

Taiwan, which imports more than 99 percent of its crude oil needs, is encouraging the use of alternative energy sources including biofuels to lessen greenhouse-gas emissions. Jatropha is CPC's preferred choice for biodiesel as it doesn't compete with food crops, Kung said, declining to identify any potential Southeast Asian partners.

CPC may even sell the fuel in Europe, possibly pitting itself against BP Plc, Kung said at a media briefing in Taipei.

BP, Europe's second-biggest oil company, and UK-based D1 Oils Plc set up D1-BP Fuel Crops Ltd. in June 2007, saying at the time they would plant 1 million hectares of jatropha over four years in countries including India, southern Africa and Southeast Asia.

CPC has planted 3,682 jatropha trees in Taiwan under a trial program, the refiner said in a statement yesterday.

Biofuels are liquid fuels such as ethanol, made from agricultural crops like sugar or grains.