Distributed Biofuels Production

Distributed Ledgers Technology (DLT) — essentially binary data stored in a large number of repositories, which can verify each other — has given birth to a very efficient medium of exchange, and spread so easily around the world like Bitcoin etc.

What if the same principles — distributed management — ​​were applied to real sectors such as fuel production? The result will be more or less the same, the production of highly efficient fuel — as the inefficient role will be automatically ‘eliminated’ from the system.

Look at the illustration below. If I manage a project on a remote island, for example, the option now is for my fuel to come from big islands. This becomes very expensive in logistics costs and the supply is easily disrupted when the wave season arrives. So I can build my own micro refinery at the project site and buy vegetable oil produced by local people through collectors, then process it into fuel for my own use. From here the need for fuel supply from big islands has been eliminated from my ecosystem.

When collectors are inefficient, taking margins more than the added value they provide, then I can buy directly from the farmers who plant the oil-producing trees that I need. In this case the trader’s function is eliminated. And so on, will leave players who are really efficient, the added value provided exceeds the cost of the role.

The opposite can also happen, if my project is not able to buy at a good price, my micro refinery is not efficient, collectors and farmers can sell it to other projects that are more efficient, which can buy farmers’ produce at a good price. As a result, the concept of distributed production will encourage all parties to be efficient so as not to be eliminated from the system.

Two things are the enabling factors of this concept, the existence of an efficient oil-producing commodity — for example tamanu or what we call NuOil, and the micro refinery technology that we have developed, God willing, both are ready.