D1 Oils Plc
19 November 2004
19 November 2004
D1 Oils update: successful trials in India and plans to expand in Asia
Following a meeting near London of all D1 Oils personnel, D1 Oils plc, the UK
based low cost producer of biodiesel, today announces that one of its associates
has recently completed its first successful trials of planting, growing media
and tree propagation in Tamil Nadu, India. It has also signed a head of terms
agreement with Chinese Chuan Technology Company Ltd, Chengdu to form D1 Oils
In Tamil Nadu, jatropha trees owned by Aavin Dairies grown on 300 hectares using
D1 Oils proprietary fertiliser have reached oil bearing stage within a year of
planting, more than six months ahead of expectation. The first harvests of
oil-bearing seeds are expected within 12 weeks. As a result D1 Oils should be
able to reduce materially the cost of planting out its land options and pass
these benefits on to other partners in the D1 Oils supply chain worldwide.
Additionally, D1 Oils has been granted a licence to export jatropha seeds by the
Indian Government. It has already announced an agreement with an Indian research
facility for the delivery of up to 50 tonnes of quality tested planting seeds.
The export licence will now enable D1 Oils to implement its planting schedule in
other territories using these specially developed seeds and its proprietary
Separately, in China, D1 Oils intends to enter into a joint venture with Chinese
Chuan Technology Company Ltd, Chengdu. D1 Oils will own 51% of the new joint
venture, which aims to develop a jatropha based biodiesel refining and feedstock
supply for the Chinese market. Under the agreement D1 Oils China will have the
rights to D1 Oils' proprietary planting, growing and refining technology, and
the ability to distribute blended biofuel in China under the D1 Oils brand.
D1 Oils China will include a refinery, currently under construction, able to
produce 20,000 tonnes of biodiesel per annum. The joint venture will have rights
over an estimated 200,000 tonnes of existing jatropha nuts and two million
hectares of land dedicated to future jatropha growth. D1 Oils will make no
immediate cash investment in the joint venture. Its partners will provide $5
million for initial working capital.
The refinery is expected to come into operation in 2005. Contractual agreements,
which will formalise the venture, are scheduled to be signed within sixty days.
The Company also announces that it has a number of other Memoranda of
Understanding signed in different regions of the world which are to be
contracted over the next few months, including a joint venture in Asia Pacific
which will deliver a third-party funded 100,000 tonne facility to process
various feedstocks including jatropha for that market. Further details of these
developments will be made at the appropriate time
Philip Wood, Chief Executive of D1 Oils plc, commented:
'It is particularly pleasing to be able to report early progress in executing on
our business plan. The successful results from India, once benchmarked and
detailed, should enable us to reduce projected costs, accelerate harvesting and
secure attractive yields furthering our drive to be the low cost provider of
biodiesel and related feedstocks.'
Karl Watkin, Chairman of D1 Oils plc, commented:
'These agreements mark a significant step in the evolution of D1 Oils plc, its
brand and supply chain. China and Asia Pacific represent large, exciting markets
for biodiesel backed by government initiatives in combating climate change and
dependence on foreign fuel. D1 Oils is delighted to be working with these
companies in catering for the growing demand in biodiesel.
These and other developments in the pipeline demonstrate the confidence in the
D1 brand worldwide and are major steps in the globalisation of D1 Oils. It is
significant that the joint ventures will utilise our proprietary technology
combined in some instances with refineries of larger capacity, and that the
strength of the D1 brand across the supply chain has been a major factor in the
decisions made by our partners.'
Karl Watkin D1 Oils plc 020 7321 3885
David Cunningham Bell Lawrie White 0141 314 8105
Kevin Byram Brunswick 020 7404 5959
Notes to editors
D1 Oils plc is the owner of technical, marketing, logistics and other
intellectual property, related to the establishment, development and harvesting
of Jatropha plantations and the extraction of oil from the harvested seeds and
the production of biodiesel from the oil, as well as other valuable products.
This information is provided by RNS
The company news service from the London Stock Exchange