Daimler, ADM, Bayer to look at jatropha

Stuttgart, Germany-based Daimler (NYSE: DAI) has teamed up with a biofuel giant and a pharmaceutical powerhouse to research the use of of jatropha as a feedstock for biodiesel production.

The automaker will be working with Decatur, Ill.'s Archer Daniels Midland (NYSE: ADM) and Monheim am Rhein, Germany-based Bayer CropScience, a unit of Bayer, on the joint project.

"Sustainable production of jatropha without impacting food production is not only an interesting option on marginal areas. It might be a further essential key in renewable energy strategies of the future," said Rüdiger Scheitza, a member of the board of management at Bayer CropScience.

Jatropha can be cultivated on barren land, so it does not compete for land that is being used for food production.

Biodiesel derived from jatropha nut kernels has properties similar to those of biofuels obtained from oilseed rapes, according to Daimler.

The carmaker said the three companies are looking to develop production and quality standards for jatropha-based biofuel.

ADM runs several biodiesel refineries worldwide, while Bayer CropScience will work on developing and registering herbicides, soil insecticides and fungicides for disease and pest control of jatropha plants.

Daimler said it completed a five-year research project last year that demonstrated that jatropha can be used and cultivated for biodiesel, and studied the use of the fuel in test vehicles.

The company said it plans to continue to explore the interactions between the fuel and engines, as well as with mixtures of jatropha biodiesel and other fuels.

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