INEOS ENTERPRISES 10 YEAR AGR

RNS Number : 0942K

Viridas PLC

15 December 2008

 



VIRIDAS AND INEOS ENTERPRISES SIGN TEN YEAR JATROPHA AGREEMENT

Viridas is pleased to announce that the strategic partnership with INEOS Enterprises announced on 17 April 2008 has led to the signing of a Ten Year Jatropha Oil Supply & Development Agreement [the Agreement]. The Agreement between Viridas Enterprises Brazil Limited [Viridas], a wholly-owned subsidiary of Viridas plc, and INEOS Enterprises covers the supply of jatropha oil to be produced by Viridas from its plantations in Brazil. INEOS Enterprises will use the jatropha oil as a raw material in its biodiesel production processes.

Under the Agreement INEOS Enterprises will purchase up to 60,000 tonnes per annum of jatropha oil, once commercial levels of production have been reached. The price is based on an agreed formula and with Viridas having the right to sell the jatropha oil in the market in certain circumstances, once obligations to INEOS Enterprises have been met. Under the agreement, INEOS Enterprises may exercise a break clause 2 years after commencement of commercial levels of production.

The Agreement with INEOS Enterprises underpins Viridas's plans for the implementation of a fully mechanised, industry scale, crude jatropha oil production business in Brazil, as outlined in the Chairman's Statement in June.

Viridas is now reviewing options to finance the initial stage of its plan to purchase, plant out and manage 30,000 hectares of jatropha crop in Brazil, with a view to commercial levels of production of jatropha oil coming on stream in 2013.

Stanley Wootliff, Chairman of Viridas plc, commented:-

'We are delighted with the outcome of the partnership entered into with INEOS in April, which has proved invaluable to us in gaining a thorough understanding of the requirements of potential customers in the European market for jatropha oil. Signature of the Agreement now will enable us to develop our strategy in the knowledge that we have a credible development partner and have secured the sale of our anticipated output of jatropha oil during the critical initial phases of production.

Dr Harry Deans, CEO of INEOS Enterprises, comments:-

'Moving from development phase to supply agreement with Viridas is a further step in our long term strategy to secure sustainable, low carbon feedstock for our biodiesel business. The expansion of our jatropha interests is a clear demonstration of ongoing commitment to our announced biodiesel strategy. We strongly believe that working with credible front end suppliers such as Viridas, who have the vision and ability to produce sustainable, low carbon feedstock, will help to establish biodiesel as the key alternative fuel for transport.'

For further information pleas contact:

Viridas plc: Stanley Wootliff- 0113 2350632

FinnCap: Matthew Robinson- 0207 600 1658

INEOS Enterprises: Craig Welsh- 01928 511 528

Editors Notes

About Viridas:

Since 2007, on its trial plantation in Minas Gerias, Viridas has been researching and developing agronomy techniques for the growing of jatropha on an industrial scale, for the production of Crude Jatropha OiL

Building on this experience Viridas aims to develop industrial scale jatropha plantations with both the agronomy and all aspects of production fully managed and controlled by Viridas on land which it owns or holds on long lease hold.

The Crude Jatropha Oil Viridas plans to produce is a sustainable, perennial non food vegetable oil from reforestation trees planted on idle land.

About INEOS Enterprises:

INEOS is the world's third largest chemicals company comprising 18 businesses each with a major chemical company heritage. The INEOS production network spans 70 manufacturing facilities in 14 countries throughout the world.

Part of the INEOS group of companies, INEOS Enterprises is a portfolio of eight leading businesses manufacturing chemical products in Northern Europe and Southeast Asia, with sales of these products to customers around the world. The Company is focused on developing needs of customers and rapid growth through investment in new products and manufacturing facilities or by acquisition. INEOS Enterprises has been manufacturing biodiesel in Europe since 1995 and has recently increased annual capacity to more than 250,000 tonnes.

 

END

 

 

AGRBRBDDIXBGGID