D1 Oils Plc
19 January 2005
19th January 2005
D1 Oils growing in Madagascar
D1 Oils plc, the UK based low cost producer of biodiesel, today announces it is
expanding in Madagascar. The Company has identified approximately 17,000
hectares of existing Jatropha plantations and has made arrangements to access
the output from the plantations. The arrangements have been made in
collaboration with business-to-business aid agency BAMEX (Business and Market
Expansion) of Madagascar. The trees are currently being used as supports for
growing vanilla and are already yielding seeds.
The first crop of Jatropha oil bearing seeds is expected to be available from
mid 2005 and harvesting is planned to commence at that time. Estimation of
outputs cannot be guaranteed to be the same as detailed in the Prospectus, due
to variations in the density of trees per Hectare. The Directors believe that
seed yields will be consistent with the age of the trees being harvested.
The area under cultivation in Madagascar is additional to the 37,000 hectares of
plantations in Africa, India and The Philippines as outlined by D1 Oils in its
Prospectus at the time of flotation in October 2004. It is also in addition to
approximately 6,000,000 hectares of land available to the Company under option
to contract. The expansion further advances the company's objective to become
the world's leading low cost producer of biodiesel and feedstock for biodiesel.
Adam Simcock, Chief Executive of D1 Africa, said: 'We are delighted to be
working with BAMEX in Madagascar and to be able to provide additional income for
the local vanilla farmers'.
Philip Wood, Chief Executive of D1 Oils plc, commented: 'The number of new
opportunities D1 Oils is engaged in reflects our increasing global profile. This
partnership, which increases our cultivation capacity announced at flotation by
nearly 50%, demonstrates the commitment and adaptability of our management team
and its ability to source additional supplies of indigenous oil which will
deliver revenue ahead of the first harvests from our new plantations. The
plantations in Madagascar are already yielding seeds which materially reduce the
working capital we would otherwise need to develop this source of supply '.
Philip Wood 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 (DOO.L) 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 valuable by-products.
D1 Oils plc successfully floated on the Alternative Investment Market in October
2004. Since the Group was founded in 2002, D1 Oils has established operations
and strategic and commercial relationships in 4 regions - Europe, Africa, Asia
Pacific and India. Alongside the 17,000 hectares secured in Madagascar, D1 Oils
also has 37,000 hectares to cultivate and produce Jatropha oil for refining into
biodiesel, as well as options on an additional 5 million hectares in India and
approximately 1 million in Burkina Faso.
D1 Oils has acquired all rights to the design and manufacture of a modular
mobile biodiesel refinery with the capacity of processing 8 million litres of
biodiesel from crude vegetable oil per annum.
Business and Market Expansion (BAMEX)
Business and Market Expansion (BAMEX) is an aid agency funded by USAid. Their
role is to put international private sector businesses together with local
business partners in order to facilitate technology transfer into Madagascar and
This information is provided by RNS
The company news service from the London Stock Exchange