Vietnam – a potential regional supply hub for Jatropha seed oil

Japan’s research on non-edible oil feedstocks showed that Jatropha is highly drought-tolerant and could grow well on wasteland, eroded sandy land and infertile soil. Given this, areas in central Vietnam, including Ninh Thuan, Binh Thuan and the Central Highlands, have climatic, sunlight and soil conditions suitable for achieving high seed yields and oil content.

Hanoi (VNA) – Vietnam has outstanding potential to become a regional supply hub for Jatropha seed oil for biodiesel and sustainable aviation fuel (SAF) production, said Tetsuya Koshikawa, President of Star Japan Co., Ltd., a Japanese-owned company pioneering Jatropha cultivation in Vietnam.

download-15.png
A Jatropha cultivation area of Star Japan Co., Ltd in My Son commune, Khanh Hoa province (Photo of Star Japan Co., Ltd)

Commonly known as physic nut, Jatropha is a genus of flowering plants in the spurge family, Euphorbiaceae. It has been developed in a number of countries as a source of raw material for biodiesel-B100 and SAF production, while also helping rehabilitate degraded land.

Talking to the Vietnam News Agency, Koshikawa said Japan’s research on non-edible oil feedstocks showed that Jatropha is highly drought-tolerant and could grow well on wasteland, eroded sandy land and infertile soil. Given this, areas in central Vietnam, including Ninh Thuan, Binh Thuan and the Central Highlands, have climatic, sunlight and soil conditions suitable for achieving high seed yields and oil content.

Unlike maize, soybean and sugarcane, Jatropha produces non-edible oil containing natural toxins. Expanding Jatropha cultivation on sloping and nutrient-poor land could therefore support bioenergy development without affecting farmland for food crops or competing with food security, he said.

Koshikawa also noted that crude Jatropha oil is compatible with technologies for converting feedstock into SAF and biodiesel, as its fatty acid content and other indicators are suitable for hydroprocessed esters and fatty acids (HEFA) technology used to produce SAF and esterification technology for new-generation biodiesel.

Vietnam’s location on international maritime routes also facilitates supply-chain connections for exporting SAF to Japan, Europe and markets facing pressure to reduce aviation emissions, including those covered by the International Civil Aviation Organisation’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and the EU’s ReFuelEU aviation regulation, he added.

However, he said, previous and ongoing Jatropha projects have revealed several major challenges, including seed quality and yields, high manual harvesting costs, weak linkages between raw-material production areas and processors, and stringent international sustainability certification requirements.

According to him, many previous cultivation areas used unselected seeds, resulting in uneven yields and low oil content, while reliance on manual harvesting has increased input costs amid rising labour expenses. Farmers are also hesitant to switch crops or adopt intercropping without long-term purchase commitments and risk-protective floor prices.

For exports to demanding markets, the entire cultivation and processing chain must also meet stringent requirements on carbon emissions and deforestation, including ISCC EU, ISCC PLUS and CORSIA certification.

To address these challenges, Star Japan plans to develop a closed value-chain model, working with farms, cooperatives and agro-forestry enterprises to select and supply high-quality, disease-resistant Jatropha varieties adapted to local conditions. It also plans to promote intercropping with short-term crops such as peanuts and mung beans, or industrial crops, to improve land-use efficiency and provide farmers with short-term income alongside revenue from Jatropha seeds.

The company will invest in oil pressing and pre-processing facilities, including central crude-oil pressing and refining plants near raw-material production areas. It will also apply technical processes to utilise by-products, such as using Jatropha press cake as microbial biofertiliser and fruit shells to make biomass pellets.

In the first phase, Star Vietnam will collect and press high-quality crude Jatropha oil (CJO) meeting ISCC certification requirements. In the second phase, Star Japan, through its parent company Revo International Co., Ltd. of Japan, will cooperate with domestic and foreign petrochemical refining technology firms to supply feedstock or form joint ventures to build facilities for further conversion into biodiesel and SAF, Koshikawa said.

He stressed that Star Japan has proposed five support mechanisms to the Vietnamese Government to help businesses and farmers develop green raw-material areas.

These include flexible land allocation and leasing mechanisms for degraded land, alluvial land and inefficiently used forestry land; green credit and tax incentives; measures to develop the domestic market and a legal framework for SAF; support for research and development of high-yield Jatropha varieties; and assistance in establishing default values toward CORSIA certification.

Under the framework of ICAO, he noted, SAF must qualify as CORSIA-eligible fuel to be recognised for its CO2 emission-reduction performance. Vietnam therefore needs to support the registration of SAF feedstocks and the development of default values to facilitate the wider use of certified SAF, Koshikawa noted./.

en.vietnamplus.vn

Other News

Vietnam, Laos seek to expand room for trade, investment cooperation

Vietnam, Laos seek to expand room for trade, investment cooperation

Vietnam and Laos aim to boost bilateral trade in 2026 towards the milestone of 10 billion USD by 2030, a target said to be challenging but feasible as both Governments work to remove trade barriers, improve border-trade mechanisms, and strengthen transport and logistics connectivity.

Vietnam's national brand value jumps 45% to over 462 bln USD

Vietnam's national brand value jumps 45% to over 462 bln USD

Deputy Minister of Industry and Trade Luong Hoang Thai outlined Vietnam's National Brand Programme 's achievements, the role of business community and plans for brand development in a press interview ahead of the 10th Vietnam National Brand Product recognition ceremony on October 16.

Vietnam revises scheme to improve sovereign credit rating by 2030

Vietnam revises scheme to improve sovereign credit rating by 2030

Under the decision, Vietnam aims to become a developing country with modern industry and upper-middle income by 2030, while building a competitive and effective governance system and a dynamic economy driven by science, technology, innovation and digital transformation.

Vietnam posts GDP growth of 9.95% in Q3

Vietnam posts GDP growth of 9.95% in Q3

In the first nine months, Vietnam's GDP was estimated to increase 9.01% from the same period last year. Agriculture, forestry and fisheries grew 4.02%, contributing 5.35% to overall gross value added growth; industry and construction rose 11.21%, contributing 49.62%; and services expanded 8.69%, contributing 45.03%.

Vietnam sees 149,700 new businesses in nine months

Vietnam sees 149,700 new businesses in nine months

Vietnam recorded nearly 149,700 newly established enterprises in the first nine months of 2026, up 3.2% year-on-year, with total registered capital rising 32.7% to over 1.88 quadrillion VND (71.6 billion USD).

Vietnam accelerates innovation to boost growth, competitiveness

Vietnam accelerates innovation to boost growth, competitiveness

By 2030, Vietnam aims to rank among the world’s top 40 in the GII; raise total social investment in R&D to at least 2% of GDP, with non-State funding accounting for over 60%; increase international scientific publications by an average of 10% annually; and raise the number of patent applications and granted patents by an average of 16-18% annually.

Vietnam sees high growth prospects

Vietnam sees high growth prospects

Experts from the Institute of Vietnam and World Economy under the Vietnam Academy of Social Sciences noted the quality of recent growth as the high growth rate has been recorded against an increasingly higher comparative base.

Vietnam seeks bigger share of global Halal market

Vietnam seeks bigger share of global Halal market

Vietnam's Halal exports remain modest at around 900 million USD a year, accounting for less than 1% of the global market. Most exports are still raw agricultural and seafood products. Only around 1,000–1,300 Vietnamese businesses obtained or maintained Halal certification during 2024–2026.

Hanoi sets up inter-agency mechanism to operate carbon market

Hanoi sets up inter-agency mechanism to operate carbon market

Under a decision of the municipal People’s Committee on establishing an inter-agency working group, departments and agencies are responsible for identifying facilities subject to greenhouse gas inventories, developing emissions-reduction plans and studying projects capable of generating carbon credits.

Shrimp exports reach 3.3 billion USD in eight months

Shrimp exports reach 3.3 billion USD in eight months

According to data from the Vietnam Customs cited by the Vietnam Association of Seafood Exporters and Producers (VASEP), shrimp exports reached 478.5 million USD in August, up 4.2% from the same month last year. The eight-month total stood at 3.3 billion USD, representing a year-on-year increase of 12%.

Russian investors explore opportunities in Vietnam's real estate market

Russian investors explore opportunities in Vietnam's real estate market

Vietnam is seen as a potential market, with considerable room for growth in real estate, particularly commercial property, compared with some regional markets. Strong Vietnam-Russia ties and opportunities to establish foreign-invested enterprises are also considered favourable for Russian investors.

Phu Quoc airport planning adjusted to serve APEC 2027

Phu Quoc airport planning adjusted to serve APEC 2027

For 2021-2030, the Civil Aviation Authority of Vietnam proposed bringing forward the investment in a parallel taxiway system and a connecting taxiway north of Runway No. 2 at Phu Quoc International Airport, in order to connect with the aircraft maintenance and repair facility (hangar) planned for the northern area of ​​the airport.