WHAT IS AN INVESTMENT?

Investment

To invest is to allocate money (or sometimes another resource, such as time) in the expectation of some benefit in the future.
In finance, the expected future benefit from investment is a return. The return may consist of capital gain and/or investment income, including dividends, interest, rental income etc.
Investment generally results in acquiring an asset, also called an investment. If the asset is available at a price worth investing, it is normally expected either to generate income, or to appreciate in value, so that it can be sold at a higher price (or both).
Investors generally expect higher returns from riskier investments. Financial assets range from low-risk, low-return investments, such as high-grade government bonds, to those with higher risk and higher expected commensurate reward, such as emerging markets stock investments.
Investors, particularly novices, are often advised to adopt an investment strategy and diversify their portfolio. Diversification has the statistical effect of reducing overall risk.

Related terms

Investment differs from arbitrage, in which profit is generated without investing capital or bearing risk.
An investor may bear a risk of loss of some or all of their capital invested, whereas in saving (such as in a bank deposit) the risk of loss in nominal value is normally remote. (Note that if the currency of a savings account differs from the account holder's home currency, then there is the risk that the exchange rate between the two currencies will move unfavorably, so that the value in the account holder's home currency of the savings account decreases.)
Speculation involves a level of risk which is greater than most investors would generally consider justified by the expected return. An alternative characterization of speculation is its short-term, opportunistic nature.
Famous investors
Investors famous for their success include Warren Buffett. In March 2013 Forbes magazine, Warren Buffett ranked number 2 in their Forbes 400 list.[3] Buffett has advised in numerous articles and interviews that a good investment strategy is long term and choosing the right assets to invest in requires due diligence.
Edward O. Thorp was a highly successful hedge fund manager in the 1970s and 1980s who spoke of a similar approach.
The investment principles of both of these investors have points in common with the Kelly criterion for money management.  Numerous interactive calculators which use the Kelly criterion can be found online.
Intermediaries and collective investments
Investments are often made indirectly through intermediary financial institutions. These intermediaries include pension funds, banks, brokers, and insurance companies. They may pool money received from a number of individual end investors into funds such as investment trusts, unit trusts, SICAVs etc. to make large scale investments. Each individual investor holds an indirect or direct claim on the assets purchased, subject to charges levied by the intermediary, which may be large and varied.
Approaches to investment sometimes referred to in marketing of collective investments include dollar cost averaging and market timing.
History

 
The Code of Hammurabi (around 1700 BC) provided a legal framework for investment, establishing a means for the pledge of collateral by codifying debtor and creditor rights in regard to pledged land. Punishments for breaking financial obligations were not as severe as those for crimes involving injury or death.
In the early 1900s purchasers of stocks, bonds, and other securities were described in media, academia, and commerce as speculators. By the 1950s, the term investment had come to denote the more conservative end of the securities spectrum, while speculation was applied by financial brokers and their advertising agencies to higher risk securities much in vogue at that time. Since the last half of the 20th century, the terms speculation and speculator have specifically referred to higher risk ventures.

value investing

A value investor buys undervalued securities (and sells overvalued ones). To identify undervalued securities, a value investor uses analysis of the financial reports of the issuer to evaluate the security. Value investors employ accounting ratios, such as earnings per share and sales growth, to identify securities trading at prices below their worth.
Warren Buffett and Benjamin Graham are notable examples of value investors. Graham and Dodd's seminal work Security Analysis was written in the wake of the Wall Street Crash of 1929.
The price to earnings ratio (P/E), or earnings multiple, is a particularly significant and recognized fundamental ratio, with a function of dividing the share price of stock, by its earnings per share. This will provide the value representing the sum investors are prepared to expend for each dollar of company earnings. This ratio is an important aspect, due to its capacity as measurement for the comparison of valuations of various companies. A stock with a lower P/E ratio will cost less per share, than one with a higher P/E, taking into account the same level of financial performance; therefore, it essentially means a low P/E is the preferred option.
An instance, in which the price to earnings ratio has a lesser significance, is when companies in different industries are compared. An example; although, it is reasonable for a telecommunications stock to show a P/E in the low teens; in the case of hi-tech stock, a P/E in the 40s range, is not unusual. When making comparisons the P/E ratio can give you a refined view of a particular stock valuation.
For investors paying for each dollar of a company's earnings, the P/E ratio is a significant indicator, but the price-to-book ratio (P/B) is also a reliable indication of how much investors are willing to spend on each dollar of company assets. In the process of the P/B ratio, the share price of a stock is divided by its net assets; any intangibles, such as goodwill, are not taken into account. It is a crucial factor of the price-to-book ratio, due to it indicating the actual payment for tangible assets and not the more difficult valuation, of intangibles. Accordingly, the P/B could be considered a comparatively, conservative metric.
Free cash flow and capital structure
Free cash flow measures the cash a company generates which is available to its debt and equity investors, after allowing for reinvestment in working capital and capital expenditure. High and rising free cash flow therefore tend to make a company more attractive to investors.
The debt-to-equity ratio is an indicator of capital structure. A high proportion of debt, reflected in a high debt-to-equity ratio, tends to make a company's earnings, free cash flow, and ultimately the returns to its investors, more risky or volatile. Investors compare a company's debt-to-equity ratio with those of other companies in the same industry, and examine trends in debt-to-equity ratios and free cash flow.
EBITDA
A popular valuation metric is Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA), with application for example to valuing unlisted companies and mergers and acquisitions.
For an attractive investment, for example a company competing in a high growth industry, an investor might expect a significant acquisition premium above book value or current market value, which values the company at several times the most recent EBITDA. A private equity fund for example may buy a target company for a multiple of its historical or forecasted EBITDA, perhaps as much as 6 or 8 times.
In certain cases, an EBITDA may be sacrificed by a company, in order for the pursuance of future growth; a strategy frequently used by corporate giants, such as, Amazon, Google and Microsoft, among others. This is a business decision that can impact negatively on buyout offers, founded on EBITDA and can be the cause of many negotiations, failing. It may be recognized as a valuation breach, with many investors maintaining that sellers are too demanding, while buyers are regarded as failing to realize the long-term potential of, expenditure or acquisitions.
Capital gains taxes
The amount to pay in taxes for long term investments, investments that span over a year long term, and short term investments such as those that are below a year are different. The long term investments range from Zero to twenty percent for capital gains and they are regulated by what tax bracket you are in for income taxes. For the zero to fifteen percent income tax bracket you could qualify for the zero percent long-term capital gains rate. The next bracket is the fifteen to twenty percent income tax bracket where you are set at fifteen percent capital gains tax for long term investments. The next bracket is between twenty and 39.6 percent and that leads to a twenty percent capital gains tax however with these numbers you should add 3.8 percent for the health care surtax. The short term capital gains tax is also related to your total taxable income and is taxed at the same rate as your income and ranges from ten to 39.6 percent.
Types of financial investment
Types of financial investments include:
•    Alternative investments
•    Traditional investments
An alternative investment is an investment in asset classes other than stocks, bonds, and cash. The term is a relatively loose one and includes tangible assets such as precious metals, art, wine, antiques, coins, or stamps and some financial assets such as real estate, commodities, private equity, distressed securities, hedge funds, carbon credits, venture capital, film production  and financial derivatives. Investments in real estate and forestry  are also often termed alternative despite the ancient use of such real assets to enhance and preserve wealth. Alternative investments are to be contrasted with traditional investments.

Research

There is a wide variety of literature on alternative investments; however, this term has been used broadly and can also refer to financial alternatives such as derivatives or other alternatives such as energy. It is difficult to find research on the investment characteristics of tangible alternatives such as art or wine due primarily to a lack of good quality data. The Goizueta Business School at Emory University has established the Emory Center for Alternative Investments to provide research and a forum for discussion regarding private equity, hedge fund, and venture capital investments.
As with any investment, it’s important to do your homework, but in the case of many alternative investments, some specialist knowledge on the specific asset is often needed. Therefore it’s important that would-be investors have a reputable broker or investment company on their side with demonstrable success in their asset class arena, which are happy to work with you to identify your ideal investment solutions.
How to access alternative investments
In recent years, the growth of alternative finance has opened up new avenues to investing in alternatives. These include the following:
Equity crowdfunding
Most people will recognise this form of alternative finance from the popular shows Dragons' Den (UK) and Shark Tank (US). Equity crowdfunding platforms allow 'the crowd' to review early-stage investment opportunities presented by entrepreneurs and take an equity stake in the business. Platforms differ greatly in the types of opportunities they will offer up to investors, how much due diligence is performed, degree of investor protections available, minimum investment size and so on. Equity crowdfunding platforms have seen a significant amount of success in the UK and, with the passing of JOBS Act Title III in early 2016, are now picking up steam in the US.
Investor-led crowd funding
The investor-led model was introduced by UK-based crowdfunding platform SyndicateRoom and makes it necessary for any startup seeking funding to first be vetted by an experienced investor that is also investing a significant amount (25% or more) of the target round. This approach has received largely positive feedback in the UK.
SEIS and EIS funds
Only available in the UK, SEIS funds and EIS funds present a tax-efficient way of investing in early-stage ventures. These work much like venture capital funds, with the added bonus of receiving government tax incentives for investing and loss relief protection should the companies invested in fail. Such funds help to diversify investor exposure by investing into multiple early ventures. Fees are normally charged by the management team for participating in the fund, and these can end up totalling anywhere between 15% and 40% of the fund value over the course of its life.
Private equity
Private equity consists of large-scale private investments into unlisted companies in return for equity. Private funds are typically formed by combining funds from institutional investors such as high-net-worth individuals, insurance companies, pension funds etc. Funds are used alongside borrowed money and the money of the private equity firm itself to invest in businesses they believe to have high growth potential. In Europe, venture capital, buy-ins and buy-outs are considered private equity.
Investors
The Merrill Lynch/Cap Gemini Ernst & Young World Wealth Report 2003, based on 2002 data, showed high-net-worth individuals, as defined in the report, to have 10% of their financial assets in alternative investments. For the purposes of the report, alternative investments included "structured products, luxury valuables and collectibles, hedge funds, managed futures, and precious metals". By 2007, this had reduced to 9%. No recommendations were made in either report about the amount of money investors should place in alternative investments.
Characteristics
Alternative investments are sometimes used as a way of reducing overall investment risk through diversification.
Some of the characteristics of alternative investments may include:
•    Low correlation with traditional financial investments such as stocks and bonds
•    It may be difficult to determine the current market value of the asset
•    Alternative investments may be relatively illiquid (see "Liquid alts")
•    Costs of purchase and sale may be relatively high
•    There may be limited historical risk and return data
•    A high degree of investment analysis may be required before buying
Liquid alts
Liquid alternatives ("alts") are alternative investments that provide daily liquidity. Liquid alternative investments should produce returns uncorrelated to GDP growth must have protection against systemic market risk and should be too small to create new systemic risks for the market. Hedge funds may be included in this category; however, traditional hedge funds may have liquidity limitations, and the term is usually used for registered mutual funds which use hedge fund strategies such as long-short equity equity investments.
United States
Liquid alternatives became popular in the late 2000s, growing from $124 billion in assets under management 2010 to $310 billion in 2014. However, in 2015 only $85 million was added, with 31 closed funds and a high-profile underperformance by the largest long-short equity fund at the time, Marketfield Fund. In 2014 there were an estimated 298 liquid alternative funds with strategies such as long-short equity funds; event driven, relative value, tactical trading (including managed futures), and multi-strategy. This number does not include option income funds, tactical shorting and leveraged indexed funds.
There has been expressed skepticism over the complexity of liquid alts and the lack of able portfolio managers.
In finance, the notion of traditional investments refers to putting money into well-known assets (such as bonds, cash, real estate, and equity shares) with the expectation of capital appreciation, dividends, and interest earnings. Traditional investments are to be contrasted with alternative investments.
Bonds
Here the investor purchases debt issued by companies or governments which promises to pay an annual return until the debt is repaid. The value of the investment changes as the level of general interest rates fluctuates, causing the bond to become more or less valuable.
Cash
In cash investing, money is typically invested in short-term, low-risk investment vehicles like certificates of deposit, money market funds, and high yield bank accounts.
Real estate
Real estate investing
In real estate, money is used to purchase property for the purpose of holding, reselling or leasing for income and there is an element of capital risk.
Residential real estate
Investment in residential real estate is the most common form of real estate investment measured by number of participants because it includes property purchased as a primary residence. In many cases the buyer does not have the full purchase price for a property and must borrow additional money from a bank, finance company or private lender.
Commercial real estate

Commercial real estate consists of apartments, office buildings, retail space, hotels, warehouses, and other commercial properties. Investors may purchase commercial property outright, with the help of a loan, or collectively through a real estate fund.
Real estate investment trusts
Investment in real estate investment trusts (REITs) is like investing in a pool of real estate that the company manages.
Stocks and shares
This involves purchasing a share in the equity of a company in the hope that the share price will increase. Purchasing a share in the company is the same as owning part of the company. Stock investing can come in the form of buying individual stocks, mutual funds, index funds and exchange traded funds (ETFs).

BIO INVESTMENT

Jatropha curcas

Scientific classification

Kingdom:    Plantae

(unranked):    Angiosperms

(unranked):    Eudicots
(unranked):    Rosids
Order:    Malpighiales
Family:    Euphorbiaceae

Genus:    Jatropha
Species:    J. curcas

Jatropha curcas

Jatropha curcas is a species of flowering plant in the spurge family, Euphorbiaceae, that is native to the American tropics, most likely Mexico and Central America. It is cultivated in tropical and subtropical regions around the world, becoming naturalized in some areas. The specific epithet, "curcas", was first used by Portuguese doctor Garcia de Orta more than 400 years ago and is of uncertain origin. Common names include Barbados nut, purging nut, physic nut, or JCL (abbreviation of Jatropha curcas Linnaeus).
J. curcas is a poisonous, semi-evergreen shrub or small tree, reaching a height of 6 m (20 ft). It is resistant to a high degree of aridity, allowing it to be grown in deserts.
The seeds contain 27-40% oil (average: 34.4%) that can be processed to produce a high-quality biodiesel fuel, usable in a standard diesel engine. The seeds are also a source of the highly poisonous toxalbumin curcin or jatrophin.

Botanical features

PLANTATION

•    Leaves: The leaves have significant variability in their morphology. In general, the leaves are green to pale green, alternate to subopposite, and three- to five-lobed with a spiral phyllotaxis.
•    Flowers: male and female flowers are produced on the same inflorescence, averaging 20 male flowers to each female flower, or 10 male flowers to each female flower. The petiole length ranges from 6.1–23.1 mm. The inflorescence can be formed in the leaf axil. Plants are monoecious and also presents hermaphroditic flowers occasionally.
•    Fruits : fruits are produced in winter, or there may be several crops during the year if soil moisture is good and temperatures are sufficiently high. Most fruit production is concentrated from midsummer to late fall with variations in production peaks where some plants have two or three harvests and some produce continuously through the season.
•    Seeds: the seeds are mature when the capsule changes from green to yellow. The seeds contain around 20% saturated fatty acids and 80% unsaturated fatty acids, and they yield 25%–40% oil by weight. In addition, the seeds contain other chemical compounds, such as saccharose, raffinose, stachyose, glucose, fructose, galactose, and protein. The oil is largely made up of oleic and linoleic acids. Furthermore, the plant also contains curcasin, arachidic, myristic, palmitic, and stearic acids and curcin.[1]
•    Genome: the whole genome was sequenced by Kazusa DNA Research Institute, Chiba Japan in October 2010.

Jatropha curcas seeds

Cultivation is uncomplicated. Jatropha curcas grows in tropical and subtropical regions. The plant can grow in wastelands and grows on almost any terrain, even on gravelly, sandy and saline soils. It can thrive in poor and stony soils, although new research suggests that the plant's ability to adapt to these poor soils is not as extensive as had been previously stated. Complete germination is achieved within 9 days. Adding manure during the germination has negative effects during that phase, but is favorable if applied after germination is achieved. It can be propagated by cuttings, which yields faster results than multiplication by seeds.
The flowers only develop terminally (at the end of a stem), so a good ramification (plants presenting many branches) produces the greatest amount of fruits. The plants are self-compatible.[10] Another productivity factor is the ratio between female and male flowers within an inflorescence, more female flowers mean more fruits.[11] Jatropha curcas thrives on a mere 250 mm (10 in) of rain a year, and only during its first two years does it need to be watered in the closing days of the dry season. Ploughing and planting are not needed regularly, as this shrub has a life expectancy of approximately forty years. The use of pesticides is not necessary, due to the pesticidal and fungicidal properties of the plant. It is used in rural Bengal for dhobi itch (a common fungal infection of the skin).
While Jatropha curcas starts yielding from 9-12 months time, the best yields are obtained only after 2–3 years time. The seed production is around 3.5 tons per hectare (seed production ranges from about 0.4 t/ha in the first year to over 5 t/ha after 3 years). If planted in hedges, the reported productivity of Jatropha is from 0.8 to 1.0 kg of seed per meter of live fence.

Propagation

Jatropha curcas has limited natural vegetative propagation and is usually propagated by seed. Propagation through seed (sexual propagation) leads to a lot of genetic variability in terms of growth, biomass, seed yield and oil content. Low seed viability and the recalcitrant nature of oil seeds also limit seed propagation. However, clonal techniques can help in overcoming these problems that hinder mass propagation of this tree-borne oilseed species. Vegetative propagation has been achieved by stem cuttings, grafting, budding as well as by air layering techniques. The investigation leads to the recommendation that cuttings should be taken preferably from juvenile plants and treated with 200 micro gram per litre of IBA (rooting hormone) to ensure the highest level of rooting in stem cuttings. These vegetative methods have potential for commercial propagation of these plants.
propagation of Jatropha curcas by stem cutting
•   
propagation of Jatropha curcas by grafting
•   
propagation of Jatropha curcas by Air layering
•    Jatropha Crude Oil.
Processing
Seed extraction is made simple with the use of the Universal Nut Sheller, an appropriate technology designed by the Full Belly Project.
Oil content varies from 28% to 30% and 80% extraction, one hectare of plantation will give 400 to 600 litres of oil if the soil is average.
The oily seeds are processed into oil, which may be used directly ("Straight Vegetable Oil") to fuel combustion engines or may be subjected to transesterification to produce biodiesel. Jatropha oil is not suitable for human consumption, as it induces strong vomiting and diarrhea.
A colourant can also be derived from the seed

Uses

Biofuel

When jatropha seeds are crushed, the resulting jatropha oil can be processed to produce a high-quality biofuel or biodiesel that can be used in a standard diesel car or further processed into jet fuel, while the residue (press cake) can also be used as biomass feedstock to power electricity plants, used as fertilizer (it contains nitrogen, phosphorus and potassium), or as animal fodder. The cake can also be used as feed in digesters and gasifiers to produce biogas.

There are several forms of biofuel, often manufactured using sedimentation, centrifugation, and filtration. The fats and oils are turned into esters while separating the glycerin. At the end of the process, the glycerin settles and the biofuel floats. The process through which the glycerin is separated from the biodiesel is known as transesterification. Glycerin is another by-product from Jatropha oil processing that can add value to the crop. Transesterification is a simple chemical reaction that neutralizes the free fatty acids present in any fatty substances in Jatropha. A chemical exchange takes place between the alkoxy groups of an ester compound by an alcohol. Usually, methanol and ethanol are used for the purpose. The reaction occurs by the presence of a catalyst, usually sodium hydroxide (NaOH) or caustic soda and potassium hydroxide (KOH), which forms fatty esters (e.g., methyl or ethyl esters), commonly known as biodiesel. It takes approximately 10% of methyl alcohol by weight of the fatty substance to start the transesterification process.
Estimates of Jatropha seed yield vary widely, due to a lack of research data, the genetic diversity of the crop, the range of environments in which it is grown, and Jatropha's perennial life cycle. Seed yields under cultivation can range from 1,500 to 2,000 kilograms per hectare, corresponding to extractable oil yields of 540 to 680 litres per hectare (58 to 73 US gallons per acre). In 2009 Time magazine cited the potential for as much as 1,600 gallons of diesel fuel per acre per year. The plant may yield more than four times as much fuel per hectare as soybean, and more than ten times that of maize (corn), but at the same time it requires five times as much water per unit of energy produced as does corn (see below). A hectare of jatropha has been claimed to produce 1,892 litres of fuel. However, as it has not yet been domesticated or improved by plant breeders, yields are variable.
Jatropha can also be intercropped with other cash crops such as coffee, sugar, fruits and vegetables.
In 2007 Goldman Sachs cited Jatropha curcas as one of the best candidates for future biodiesel production. However, despite its abundance and use as an oil and reclamation plant, none of the Jatropha species has been properly domesticated and, as a result, its productivity is variable, and the long-term impact of its large-scale use on soil quality and the environment is unknown.
In 2008 researchers at Daimler Chrysler Research explored the use of jatropha oil for automotive use, concluding that although jatropha oil as fuel "has not yet reached optimal quality, ... it already fulfills the EU norm for biodiesel quality". Archer Daniels Midland Company, Bayer CropScience and Daimler AG have a joint project to develop jatropha as a biofuel. Three Mercedes cars powered by Jatropha diesel have already put some 30,000 kilometres behind them. The project is supported by DaimlerChrysler and by the German Association for Investment and Development (Deutschen Investitions- und Entwicklungsgesellschaft, DEG).
Jet fuel

Aviation fuels may be more widely replaced by biofuels such as jatropha oil than fuels for other forms of transportation. There are fewer planes than cars or trucks and far fewer jet fueling stations to convert than gas stations.
On December 30, 2008, Air New Zealand flew the first successful test flight from Auckland with a Boeing 747 running one of its four Rolls-Royce engines on a 50:50 blend of jatropha oil and jet A-1 fuel.[25][26] In the same press release, Air New Zealand announced plans to use the new fuel for 10% of its needs by 2013. At the time of this test, jatropha oil was much cheaper than crude oil, costing an estimated $43 a barrel or about one-third of the June 4, 2008 closing price of $122.30 for a barrel of crude oil.
On January 7, 2009 Continental Airlines successfully completed a test flight from Houston, Texas using a 50/50 mixture of algae/jatropha-oil-derived biofuel and Jet A in one of the two CFM56 engines of a Boeing 737-800 Next Generation jet. The two-hour test flight could mark another promising step for the airline industry to find cheaper and more environmentally friendly alternatives to fossil fuel.
On April 1, 2011 Interjet completed the first Mexican aviation biofuels test flight on an Airbus A320. The fuel was a 70:30 traditional jet fuel biojet blend produced from Jatropha oil provided by three Mexican producers, Global Energías Renovables (a wholly owned subsidiary of U.S.-based Global Clean Energy Holdings), Bencafser S.A. and Energy JH S.A. Honeywell's UOP processed the oil into Bio-SPK (Synthetic Paraffinic Kerosene). Global Energías Renovables operates the largest Jatropha farm in the Americas.
On October 28, 2011 Air China completed the first successful demonstration flight by a Chinese airline that used jatropha-based biofuel. The mixture was a 50:50 mix of conventional jet fuel blended with jatropha oil from China National Petroleum Corp. The 747-400 powered one of its four engines on the fuel mixture during the 1-hour flight around Beijing airport.

According to a 2013 study published by the European Geosciences Union, the jatropha tree may have applications in the absorption of carbon dioxide, whose sequestration is regarded by some as important in combating climate change. This small tree is very resistant to aridity so it can be planted in hot and dry land in soil unsuitable for food production. The plant does need water to grow though, so coastal areas where desalinated seawater can be made available are ideal.
Use in developing world

Currently the oil from Jatropha curcas seeds is used for making biodiesel fuel in Philippines, Pakistan and in Brazil, where it grows naturally and in plantations in the southeast, north, and northeast of Brazil. Likewise, jatropha oil is being promoted as an easily grown biofuel crop in hundreds of projects throughout India and other developing countries.] Large plantings and nurseries have been undertaken in India by many research institutions, and by women's self-help groups who use a system of microcredit to ease poverty among semiliterate Indian women. The railway line between Mumbai and Delhi is planted with jatropha and the train itself runs on 15-20% biodiesel. In Africa, cultivation of jatropha is being promoted and it is grown successfully in countries such as Mali.] In the Gran Chaco of Paraguay, where a native variety (Jatropha matacensis) also grows, studies have shown the suitability of Jatropha cultivation and agro producers are starting to consider planting in the region.
Burma

Burma is also actively pursuing the use of jatropha oil. On 15 December 2005, then-head of state, Senior General Than Shwe, said “the States and Divisions concerned are to put 50,000 acres (200 km²) under the physic nut plants [Jatropha] each within three years totalling 700,000 acres (2,800 km²) during the period”. On the occasion of Burma’s Peasant Day 2006, Than Shwe described in his a message that “For energy sector which is an essential role in transforming industrial agriculture system, the Government is encouraging for cultivation of physic nut plants nationwide and the technical know how that can refine physic nuts to biodiesel has also identified.” He would like to urge peasants to cultivate physic nut plants on a commercial scale with major aims for emergence of industrial agriculture system, for fulfilling rural electricity supply and energy needs, for supporting rural areas development and import substitute economy. (2005 from MRTV)
In 2006, the chief research officer at state-run Myanma Oil and Gas Enterprise said Burma hoped to completely replace the country's oil imports of 40,000 barrels a day with home-brewed, jatropha-derived biofuel. Other government officials declared Burma would soon start exporting jatropha oil. Despite the military's efforts, the jatropha campaign apparently has largely flopped in its goal of making Burma self-sufficient in fuel. (2006 from MyawaddyTV)
Z.G.S. Bioenergy has started Jatropha Plantation Projects in Northern Shan State, the company has begun planting Jatropha plants during late June 2007 and will start producing seeds by 2010. (20 July 2007 from New Light of Myanmar)
Controversies

As of 2011 skepticism about the "miracle" properties of Jatropha has been voiced. For example: "The idea that jatropha can be grown on marginal land is a red herring", according to Harry Stourton, business development director of UK-based Sun Biofuels, which cultivates Jatropha in Mozambique and Tanzania. "It does grow on marginal land, but if you use marginal land you'll get marginal yields," he said.
An August 2010 article warned about the actual utility and potential dangers of reliance on Jatropha in Kenya. Major concerns included its invasiveness, which could disrupt local biodiversity, as well as damage to water catchment areas.
Jatropha curcas is lauded as being sustainable, and that its production would not compete with food production, but the jatropha plant needs water like every other crop to grow. This could create competition for water between the jatropha and other edible food crops. In fact, jatropha requires five times more water per unit of energy than sugarcane and corn.
Other uses
•    Flowers
The species is listed as a honey plant. Hydrogen cyanide is present.
•    Nuts
Can be construed for home cooking fuel in briquette form replacing charcoalized timber as in Haiti.
They can be burned like candlenuts when strung on grass. HCN is present.
Used as a contraceptive in South Sudan.
•    Seeds

BIO WASTE

Interest exists in producing animal feed from the bio-waste once the oil is expressed, as in the case with Haiti, where Jatropha curcas grows prolifically and animal feed is in very short supply.
Similarly, Metsiyen in the Haitian culture dates back as a medicinal crop - thus the name "metsiyen"/"medsiyen". Some suggest it "calms the stomach".
Some mention of Metsiyen being used to ward off evil spirits in past Haitian culture where voodoo has been losing adherents for Christian faith.
Also used as a contraceptive in South Sudan.
The oil has been used for illumination, soap, candles, the adulteration of olive oil, and making Turkey red oil. Turkey red oil, also called sulphonated (or sulfated) castor oil, is the only oil that completely disperses in water. It is made by adding sulfuric acid to pure Jatropha oil. It was the first synthetic detergent after ordinary soap, as this allows easy use for making bath oil products. It is used in formulating lubricants, softeners, and dyeing assistants.

The seeds in the zone around Misantla, Veracruz are very appreciated by the population as food once they have been boiled and roasted. It is unclear if this is due to the existence of a non-toxic variety of Jatropha in Mexico and Central America, or if the seeds become edible once processed by cooking.
It is also similarly reported that Jatropha seeds are edible once the embryo has been removed. Again it may be so because of these seeds coming from a local non-toxic variety. HCN is present.
•    Roots
Their ashes are used as a salt substitute. HCN and rotenone are present.
•    Bark
Used as a fish poison. HCN is present in it.  According to Igbinosa and colleagues (2009), a demonstration of potential broad spectrum antimicrobial activity of J. curcas bark extract was found.
•    Latex
Strongly inhibits the watermelon mosaic virus.
•    Sap
It stains linen. Sometimes used for marking or similar activity.
•    Shrub
The shrubs are mostly used for erosion control.

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PALM OIL BUSINESS

Palm oil

Palm oil block showing the lighter color that results from boiling
Palm oil (also known as dendê oil, from Portuguese) is an edible vegetable oil derived from the mesocarp (reddish pulp) of the fruit of the oil palms, primarily the African oil palm Elaeis guineensis, and to a lesser extent from the American oil palm Elaeis oleifera and the maripa palm Attalea maripa.
Palm oil is naturally reddish in color because of a high beta-carotene content. It is not to be confused with palm kernel oil derived from the kernel of the same fruit, or coconut oil derived from the kernel of the coconut palm (Cocos nucifera). The differences are in color (raw palm kernel oil lacks carotenoids and is not red), and in saturated fat content: palm mesocarp oil is 41% saturated, while palm kernel oil and coconut oil are 81% and 86% saturated fats, respectively.
Along with coconut oil, palm oil is one of the few highly saturated vegetable fats and is semi-solid at room temperature. Like most plant-based products, palm oil contains very little cholesterol.
Palm oil is a common cooking ingredient in the tropical belt of Africa, Southeast Asia and parts of Brazil. Its use in the commercial food industry in other parts of the world is widespread because of its lower cost and the high oxidative stability (saturation) of the refined product when used for frying.
The use of palm oil in food products has attracted the concern of environmental activist groups; the high oil yield of the trees has encouraged wider cultivation, leading to the clearing of forests in parts of Indonesia and Malaysia in order to make space for oil-palm monoculture. This has resulted in significant acreage losses of the natural habitat of the orangutan, of which both species are endangered; one species in particular, the Sumatran orangutan, has been listed as critically endangered. In 2004, an industry group called the Roundtable on Sustainable Palm Oil (RSPO) was formed to work with the palm oil industry to address these concerns. Additionally, in 1992, in response to concerns about deforestation, the Malaysian Government pledged to limit the expansion of palm oil plantations by retaining a minimum of half the nation's land as forest cover. These commitments have not been met.
History

Oil palms (Elaeis guineensis).
Human use of oil palms may date as far back as 5,000 years; in the late 1800s, archaeologists discovered a substance that they concluded was originally palm oil in a tomb at Abydos dating back to 3,000 BCE.  It is believed that Arab traders brought the oil palm to Egypt. Some argue that it is not possible that Arab traders could have brought the oil palm to ancient Egypt, as the Arabs did not settle in Africa until the 8th century CE. It is more likely that the oil palm was brought to Ancient Egypt (Kemet) by its founding peoples who migrated from other regions of the African continent.
Palm oil from Elaeis guineensiss has long been recognized in West and Central African countries, and is widely used as a cooking oil. European merchants trading with West Africa occasionally purchased palm oil for use as a cooking oil in Europe.
Palm oil became a highly sought-after commodity by British traders, for use as an industrial lubricant for machinery during Britain's Industrial Revolution.
Palm oil formed the basis of soap products, such as Lever Brothers' (now Unilever) "Sunlight" soap, and the American Palmolive brand.[16]
By around 1870, palm oil constituted the primary export of some West African countries such as Ghana and Nigeria although this was overtaken by cocoa in the 1880s.
Composition
Fatty acids
Palm oil, like all fats, is composed of fatty acids, esterified with glycerol. Palm oil has an especially high concentration of saturated fat, specifically, of the 16-carbon saturated fatty acid palmitic acid, to which it gives its name. Monounsaturated oleic acid is also a major constituent of palm oil. Unrefined palm oil is a large natural source of tocotrienol, part of the vitamin E family.[17]
The approximate concentration of fatty acids in palm oil is:
Fatty acid content of palm oil
Type of fatty acid            pct   
Myristic saturated C14
      1.0%
Palmitic saturated C16
      43.5%
Stearic saturated C18
      4.3%
Oleic monounsaturated C18
      36.6%
Linoleic polyunsaturated C18
      9.1%
Other/Unknown          5.5%
black: Saturated; grey: Monounsaturated; blue: Polyunsaturated
Carotenes
When unrefined or when processed into red palm oil, it is naturally rich in carotenes, which give it its characteristic dark red color. Like tomatoes, carrots and many other fruits and vegetables but unlike most oils, palm oil naturally contains the nutrients alpha-carotene, beta-carotene and lycopene. Palm oil contains other carotenes including tocopherols and tocotrienols (members of the vitamin E family), CoQ10, phytosterols, and glycolipids.
Processing and use
Many processed foods either contain palm oil or various ingredients derived from it.
Refining
: Cooking oil refinement
After milling, various palm oil products are made using refining processes. First is fractionation, with crystallization and separation processes to obtain solid (stearin), and liquid (olein) fractions. Then melting and degumming removes impurities. Then the oil is filtered and bleached. Physical refining removes smells and coloration to produce "refined, bleached and deodorized palm oil" (RBDPO) and free sheer fatty acids, which are used in the manufacture of soaps, washing powder and other products. RBDPO is the basic palm oil product sold on the world's commodity markets. Many companies fractionate it further to produce palm olein for cooking oil, or process it into other products.
Red palm oil
Since the mid-1990s, red palm oil has been cold-pressed and bottled for use as cooking oil, and blended into mayonnaise and salad oil.[22]
Butter and trans fat substitute
The highly saturated nature of palm oil renders it solid at room temperature in temperate regions, making it a cheap substitute for butter or trans fats in uses where solid fat is desirable, such as the making of pastry dough and baked goods. A recent rise in the use of palm oil in the food industry has partly come from changed labelling requirements that have caused a switch away from using trans fats.[23] Palm oil has been found to be a reasonable replacement for trans fats;[24] however, a small study conducted in 2009 found that palm oil may not be a good substitute for trans fats for individuals with already-elevated LDL levels. The USDA agricultural research service states that palm oil is not a healthy substitute for trans fats.
Biomass and bioenergy
Palm oil is used to produce both methyl ester and hydrodeoxygenated biodiesel. Palm oil methyl ester is created through a process called transesterification. Palm oil biodiesel is often blended with other fuels to create palm oil biodiesel blends. Palm oil biodiesel meets the European EN 14214 standard for biodiesels. Hydrodeoxygenated biodiesel is produced by direct hydrogenolysis of the fat into alkanes and propane. The world's largest palm oil biodiesel plant is the Finnish-operated Neste Oil biodiesel plant in Singapore, which opened in 2011 and produces hydrodeoxygenated NEXBTL biodiesel.
The organic waste matter that is produced when processing oil palm, including oil palm shells and oil palm fruit bunches, can also be used to produce energy. This waste material can be converted into pellets that can be used as a biofuel. Additionally, palm oil that has been used to fry foods can be converted into methyl esters for biodiesel. The used cooking oil is chemically treated to create a biodiesel similar to petroleum diesel.
In wound care
Although palm oil is applied to wounds for its supposed antimicrobial effects, research does not confirm its effectiveness.
Production
In 2012, the annual revenue received by Indonesia and Malaysia together, the top two producers of palm oil, was $40 billion. Between 1962 and 1982 global exports of palm oil increased from around half a million to 2.4 million tonnes annually and in 2008 world production of palm oil and palm kernel oil amounted to 48 million tonnes. According to FAO forecasts by 2020 the global demand for palm oil will double, and triple by 2050.

A map of world palm oil output, 2013.
Indonesia
Palm oil production in Indonesia
Indonesia is the largest producer of palm oil, surpassing Malaysia in 2006, producing more than 20.9 million tonnes. Indonesia expects to double production by the end of 2030. At the end of 2010, 60 percent of the output was exported in the form of crude palm oil. FAO data show production increased by over 400% between 1994 and 2004, to over 8.66 million metric tonnes.
Malaysia
Palm oil production in Malaysia

A palm oil plantation in Malaysia.
In 2012, Malaysia, the world's second largest producer of palm oil, produced 18.79 million tonnes of crude palm oil on roughly 5,000,000 hectares (19,000 sq mi) of land. Though Indonesia produces more palm oil, Malaysia is the world's largest exporter of palm oil having exported 18 million tonnes of palm oil products in 2011. China, Pakistan, the European Union, India and the United States are the primary importers of Malaysian palm oil products.

A palm oil plantation in Indonesia.
Nigeria
As of 2011, Nigeria was the third-largest producer, with approximately 2.3 million hectares (5.7×106 acres) under cultivation. Until 1934, Nigeria had been the world's largest producer. Both small- and large-scale producers participated in the industry.
Thailand
In 2013, Thailand produced 2.0 million tonnes of crude palm oil on roughly 626 thousand hectares.{{FAOStat}} Thailand expects to produce 11 million tonnes of fresh palm nuts in 2016, down from more than 12 million in 2015, the shortfall due to Thailand's drought.
Colombia
In the 1960s, about 18,000 hectares (69 sq mi) were planted with palm. Colombia has now become the largest palm oil producer in the Americas, and 35% of its product is exported as biofuel. In 2006, the Colombian plantation owners' association, Fedepalma, reported that oil palm cultivation was expanding to 1,000,000 hectares (3,900 sq mi). This expansion is being funded, in part, by the United States Agency for International Development to resettle disarmed paramilitary members on arable land, and by the Colombian government, which proposes to expand land use for exportable cash crops to 7,000,000 hectares (27,000 sq mi) by 2020, including oil palms. Fedepalma states that its members are following sustainable guidelines.
Some Afro-Colombians claim that some of these new plantations have been expropriated from them after they had been driven away through poverty and civil war, while armed guards intimidate the remaining people to further depopulate the land, with coca production and trafficking following in their wake.
Other countries

A satellite image showing deforestation in Malaysian Borneo to allow the plantation of oil palm.
Benin
Palm is native to the wetlands of western Africa, and south Benin already hosts many palm plantations. Its 'Agricultural Revival Programme' has identified many thousands of hectares of land as suitable for new oil palm export plantations. In spite of the economic benefits, Non-governmental organisations (NGOs), such as Nature Tropicale, claim biofuels will compete with domestic food production in some existing prime agricultural sites. Other areas comprise peat land, whose drainage would have a deleterious environmental impact. They are also concerned genetically modified plants will be introduced into the region, jeopardizing the current premium paid for their non-GM crops.
Cameroon
Cameroon had a production project underway initiated by Herakles Farms in the US.
 However, the project was halted under the pressure of civil society organizations in Cameroon. Before the project was halted, Herakles left the Roundtable on Sustainable Palm Oil early in negotiations. The project has been controversial due to opposition from villagers and the location of the project in a sensitive region for biodiversity.
Kenya
Kenya's domestic production of edible oils covers about a third of its annual demand, estimated at around 380,000 metric tonnes. The rest is imported at a cost of around US$140 million a year, making edible oil the country's second most important import after petroleum. Since 1993 a new hybrid variety of cold-tolerant, high-yielding oil palm has been promoted by the Food and Agriculture Organization of the United Nations in western Kenya. As well as alleviating the country's deficit of edible oils while providing an important cash crop, it is claimed to have environmental benefits in the region, because it does not compete against food crops or native vegetation and it provides stabilisation for the soil.
Ghana
Ghana has a lot of palm nut species, which may become an important contributor to the agriculture of the region. Although Ghana has multiple palm species, ranging from local palm nuts to other species locally called agric, it was only marketed locally and to neighboring countries. Production is now expanding as major investment funds are purchasing plantations, because Ghana is considered a major growth area for palm oil.
Markets
   
According to the Hamburg-based Oil World trade journal, in 2008 global production of oils and fats stood at 160 million tonnes. Palm oil and palm kernel oil were jointly the largest contributor, accounting for 48 million tonnes, or 30% of the total output. Soybean oil came in second with 37 million tonnes (23%). About 38% of the oils and fats produced in the world were shipped across oceans. Of the 60.3 million tonnes of oils and fats exported around the world, palm oil and palm kernel oil made up close to 60%; Malaysia, with 45% of the market share, dominated the palm oil trade.
Food label regulations
Previously, palm oil could be listed as "vegetable fat" or "vegetable oil" on food labels in the European Union (EU). From December 2014, food packaging in the EU is no longer allowed to use the generic terms "vegetable fat" or "vegetable oil" in the ingredients list. Food producers are required to list the specific type of vegetable fat used, including palm oil. Vegetable oils and fats can be grouped together in the ingredients list under the term "vegetable oils" or "vegetable fats" but this must be followed by the type of vegetable origin (e.g. palm, sunflower or rapeseed) and the phrase "in varying proportions".
Supply Chain Institutions
The Roundtable on Sustainable Palm Oil (RSPO) was established in 2004 following concerns raised by non-governmental organizations about environmental impacts that results from palm oil production. The organization has established international standards for sustainable palm oil production. Products containing Certified Sustainable Palm Oil (CSPO) can carry the RSPO trademark. Members of the RSPO include palm oil producers, environmental groups and manufacturers who use palm oil in their products.
The RSPO is applying different types of programmes to supply palm oil to producers.
•    Book & Claim - no guarantee that the end product contains certified sustainable Palm Oil, supports RSPO certified growers and farmers
•    Identity Preserved - the end user is able to trace the palm oil back to a specific single mill and its supply base (plantations)
•    Segregated - this option guarantees that the end product contains certified palm oil
•    Mass Balance - the refinery is only allowed to sell the same amount of Mass Balance palm oil as the amount of certified sustainable palm oil purchased

GreenPalm is one of the retailers executing the Book & Claim supply chain and trading programme. It guarantees that the palm oil producer is certified by the RSPO. Through GreenPalm the producer can certify a specified amount with the GreenPalm logo. The buyer of the oil is allowed to use the RSPO and the GreenPalm label for sustainable palm oil on his products.
Nutrition and health
Palm oil is also an important source of calories and a food staple in poor communities. However its overall health impacts, particularly in relation to cardiovascular disease, are controversial and subject to ongoing research.
Much of the palm oil that is consumed as food is cooking oil, to some degree oxidized rather than in the fresh state, and this oxidation appears to be responsible for the health risk associated with consuming palm oil.
Cardiovascular disease
Several studies have linked palm oil to higher risks of cardiovascular disease including a 2005 study conducted in Costa Rica which indicated that replacing palm oil in cooking with polyunsaturated non-hydrogenated oils could reduce the risk of heart attacks, and a 2011 analysis of 23 countries which showed that for each kilogram of palm oil added to the diet annually there was an increase in ischemic heart disease deaths (68 deaths per 100,000 increase) though the increase was much smaller in high-income countries.
Palmitic acid
According to studies reported on by the Center for Science in the Public Interest (CSPI), excessive intake of palmitic acid, which makes up 44 percent of palm oil, increases blood cholesterol levels and may contribute to heart disease. The CSPI also reported that the World Health Organization and the US National Heart, Lung and Blood Institute have encouraged consumers to limit the consumption of palmitic acid and foods high in saturated fat. According to the World Health Organization, evidence is convincing that consumption of palmitic acid increases risk of developing cardiovascular diseases, placing it in the same evidence category as trans fatty acids.
However, a 1993 study published by the United Nations University Press found that consumption of palmitic acid appeared to have no impact on cholesterol levels when daily intake is below 400 mg per day.
Comparison to trans fats
In response to negative reports on palm oil many food manufacturers transitioned to using hydrogenated vegetable oils in their products, which have also come under scrutiny for the impact these oils have on health. A 2006 study supported by the National Institutes of Health and the USDA Agricultural Research Service concluded that palm oil is not a safe substitute for partially hydrogenated fats (trans fats) in the food industry, because palm oil results in adverse changes in the blood concentrations of LDL cholesterol and apolipoprotein B just as trans fat does. However, according to two reports published in 2010 by the Journal of the American College of Nutrition palm oil is again an accepted replacement for hydrogenated vegetable oils and a natural replacement for partially hydrogenated vegetable oils, which are a significant source of trans fats.
Comparison with animal saturated fat
Not all saturated fats have equally cholesterolemic effects. Studies have indicated that consumption of palm olein (which is more unsaturated) reduces blood cholesterol when compared to sources of saturated fats like coconut oil, dairy and animal fats.
Acrolein
A 2009 study tested the emission rates of acrolein, a toxic and malodorous breakdown product from glycerol, from the deep-frying of potatoes in red palm, olive, and polyunsaturated sunflower oils. The study found higher acrolein emission rates from the polyunsaturated sunflower oil (the scientists characterized red palm oil as "mono-unsaturated") and lower rates from both palm and olive oils. The World Health Organization established a tolerable oral acrolein intake of 7.5 mg/day per kilogram of body weight. Although acrolein occurs in French fries, the levels are only a few micrograms per kilogram. A 2011 study concluded a health risk from acrolein in food is unlikely.
Social and environmental impacts
 Social and environmental impact of palm oil
Social

In Borneo, Indonesia, the forest (F), is being replaced by oil palm plantations (G). These changes are irreversible for all practical purposes (H).
The palm oil industry has had both positive and negative impacts on workers, indigenous peoples and residents of palm oil-producing communities. Palm oil production provides employment opportunities, and has been shown to improve infrastructure, social services and reduce poverty. However, in some cases, oil palm plantations have developed lands without consultation or compensation of the indigenous people occupying the land, resulting in social conflict. The use of illegal immigrants in Malaysia has also raised concerns about working conditions within the palm oil industry.
Some social initiatives use palm oil cultivation as part of poverty alleviation strategies. Examples include the UN Food and Agriculture Organisation's hybrid oil palm project in Western Kenya, which improves incomes and diets of local populations, and Malaysia's Federal Land Development Authority and Federal Land Consolidation and Rehabilitation Authority, which both support rural development.
Food vs. fuel
 Food vs. fuel
The use of palm oil in the production of biodiesel has led to concerns that the need for fuel is being placed ahead of the need for food, leading to malnourishment in developing nations. This is known as the food versus fuel debate. According to a 2008 report published in the Renewable and Sustainable Energy Reviews, palm oil was determined to be a sustainable source of both food and biofuel. The production of palm oil biodiesel does not pose a threat to edible palm oil supplies. According to a 2009 study published in the Environmental Science and Policy journal, palm oil biodiesel might increase the demand for palm oil in the future, resulting in the expansion of palm oil production, and therefore an increased supply of food.
Environmental
2015 Southeast Asian haze
Palm oil cultivation has been criticized for impacts on the natural environment, including deforestation, loss of natural habitats, which has threatened critically endangered species such as the orangutan and Sumatran tiger, and increased greenhouse gas emissions. Many palm oil plantations are built on top of existing peat bogs, and clearing the land for palm oil cultivation contributes to rising greenhouse gas emissions.
Efforts to portray palm oil cultivation as sustainable have been made by organizations including the Roundtable on Sustainable Palm Oil, an industry group, and the Malaysian government, which has committed to preserve 50 percent of its total land area as forest. According to research conducted by the Tropical Peat Research Laboratory, a group studying palm oil cultivation in support of the industry, oil palm plantations act as carbon sinks, converting carbon dioxide into oxygen and, according to Malaysia's Second National Communication to the United Nations Framework Convention on Climate Change, the plantations contribute to Malaysia's status as a net carbon sink.
Environmental groups such as Greenpeace and Friends of the Earth oppose the use of palm oil biofuels, claiming that the deforestation caused by oil palm plantations is more damaging for the climate than the benefits gained by switching to biofuel and utilizing the palms as carbon sinks.
Roundtable On Sustainable Palm Oil (RSPO)

The Roundtable on Sustainable Palm Oil (RSPO) was created in 2004 following concerns raised by non-governmental organizations about environmental impacts related to palm oil production. The organization has established international standards for sustainable palm oil production. Products containing Certified Sustainable Palm Oil (CSPO) can carry the RSPO trademark. Members of the RSPO include palm oil producers, environmental groups and manufacturers who use palm oil in their products.
Palm oil growers who produce Certified Sustainable Palm Oil have been critical of the organization because, though they have met RSPO standards and assumed the costs associated with certification, the market demand for certified palm oil remains low. Low market demand has been attributed to the higher cost of Certified Sustainable Palm Oil, leading palm oil buyers to purchase cheaper non-certified palm oil. Palm oil is mostly fungible. In 2011, 12% of palm oil produced was certified "sustainable", though only half of that had the RSPO label. Even with such a low proportion being certified, Greenpeace has argued that confectioners are avoiding responsibilities on sustainable palm oil, because it says that RSPO standards fall short of protecting rain forests and reducing greenhouse gases.