Bedford Biofuels expects its first downstream agreement to be one of many, as demand of a biofuel alternative for use in jet engines increases, in part due to the EU Emissions Trading Scheme coming into effect in 2012.

Bedford has signed a downstream agreement with Asia-headquartered SWIFT3. Based out of Bangkok, the air cargo company flies routes through China into both the US and Europe.

Blue Peterson, pictured at right, CEO of SWIFT3, is from California but specializes in starting airlines in Asia and the Far East (Air Asia and Indigo Air). He is convinced that the future of aviation will be a mix of fuels as evidenced by his signing of a Letter of Intent (LOI) with Bedford Biofuels. Peterson is now awaiting the fuel production that will result from Bedford developing out its 160,000 hectares of land under lease in Kenya.

“SWIFT3 is intrigued with the ability of Bedford Biofuels to provide the airline with fuel for its daily operations,” said Peterson. “Not only is the fuel more efficient and cleaner, but it keeps personnel in Africa gainfully employed. This can only be good for business and, as such, SWIFT3 is wholeheartedly involved.”

David McClure, CEO of Bedford, said forward thinkers like Peterson are currently securing supply and locking in prices for biodiesel. These entrepreneurs will be ahead of the inevitable rush for supplies that are already well below the world demand for alternative energy.

“Bedford aims to be a major player in the Jatropha world and downstream agreements are key to that process,” said McClure. “We are working on relationships now that will shape our business in the future. Partners like SWIFT3 who will publicly buy into the future of biofuel are moving this industry forward.”

Bedford Biofuels has entered into long-term lease contracts on 160,000 hectares of land in Kenya, where it grows biofuel feedstock Jatropha curcas. Jatropha is a drought resistant, oilseed bearing tropical tree. When pressed, Jatropha nuts produce 35% -40% oil, and lifecycle green house gas emissions from Jatropha jet fuel are up to 84% lower than traditional jet fuel emissions.

SWIFT3 has three B747F’s to handle initial routes tying the production hub of Shanghai to the distribution network of Luxembourg on one route and Chicago on another route. Additional routes will be opened into Africa and South America with operations starting early summer.

The company’s customers include some of the largest airfreight forwarders in Shanghai and Hong Kong with additional charters on an ad-hoc basis. It provides global services with operations in Asia, the Far East, Europe, North and South America, Africa and the Middle East. These are multiyear contracts with significant expansion potential to add routes on a quarterly basis.