The project aims to see the Jatropha tree, which originates from Latin America and was imported into Madagascar early in the 20th century, used for five percent of diesel consumption by 2008, the D1 Oils Madagascar firm and its partners have said.

About 1,500 farmers will be involved in planting to begin in three regions of Madagascar in early December across more than 1,630 hectares (4,030 acres).

But much more is planned.

"We intend to plant, in collaboration with farmers' associations, 5,000 hectares of Jatropha by 2007, and 15,000 in 2008," said Sally Ross, director of D1 Oils Madagascar, which is behind the scheme in the large Indian Ocean island.

Since the price of a litre of Jatropha fuel is expected to be about the same as a litre of ordinary diesel oil in Madagascar, the main point of the project is environmental.

Jatropha fuel emits water vapour rather than carbon dioxide.

"This cultivation represents many advantages for the Madagascan farmer and for the country," said Jean-Robert Estime, director of the Business and Market Expansion programme, backed by US funding and a partner in the project.

"Firstly, this plant is very hardy, needs very little care, adapts to poor soils and is perfect for reforestation," Estime said.

"Then, the sale of the oil will provide an additional revenue to farmers estimated at a million ariary (400 euros, 470 dollars) per farmer per year," he added.

Madagascar is one of the world's poorest countries, with about 61 percent of the population living on less than one dollar a day.

Currently, Madagascar uses about 200 million litres of diesel a year, but Jatropha could provide five percent of that by 2008, according to estimates by D1. The country could even export in the medium term, Ross said.

The Jatropha tree has large leaves, can grow to five metres (10 feet) tall and is able to thrive in any environment, equally well by the seashore as on a high plateau.

"We provide the young plants to the farmers who harvest the seeds and grind them, extracting the oil that we buy from them. Then we refine the oil to transform it into green fuel," Ross said.

However, untreated, the oil can clog up diesel engines, so the project aims to set up four refineries in Madagascar over the coming five years, with the enthusiastic backing of the government.

"We're really interested in the project as an alternative energy source," said Herivelo Ramialiarisoa, energy director at the ministry of power and mines.

D1 Oils Madagascar plans to invest 250,000 dollars (212,000 euros) in the project in 2005 and a total of 12 million dollars (about 10 million euros) over a four-year period.

"We have two fears: that the amount of resources coming in from farmers will be insufficient for fuel needs and that diesel might be put straight into motors without being refined, which would wreck them," the energy director said.

D1 is running similar projects in South Africa, Burkina Faso, Malawi, Ghana, Swaziland and Zambia in Africa, as well as in India and the Philippines, but bio-diesel fuel production has yet to start. Firms in Australia and Japan have shown interest in joining the project, according to reports.

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