D1 Oils Plc
16 February 2005
D1 OILS IN DEAL WITH SAUDIS OVER BIODIESEL
A British company is helping one of the world's biggest oil producers, Saudi
Arabia, to develop renewable biodiesel in Saudi Arabia. D1 Oils plc ('D1 Oils'),
a low cost producer of biodiesel, is creating D1 Oils Arabia Limited with
Jazeera For Modern Technology. D1 Oils Arabia will be a 50/50 joint venture and
will manage the plantation of jatropha trees which D1 Oils uses as feedstock to
produce renewable biodiesel. D1 Oils Arabia will also install refineries in
Saudi Arabia and expand the D1 Oils brand throughout Saudi Arabia and into other
Gulf area countries.
Main components to the joint venture establishing D1 Oils Arabia include:
• Jatropha will be grown on former desert land therefore converting the
desert into usable agricultural land in the long term reversing
• Plantations of jatropha for biodiesel in Saudi Arabia will use waste
water (ie: treated sewerage water) exclusively.
• Jazeera will contribute 5000 hectares of land to be owned by the joint
venture for a pilot plantation, with access to an additional 100,000
hectares on successful completion.
• D1 Oils will provide the technical knowledge for the establishment and
ongoing maintenance of the jatropha plantations and the D120 biodiesel
• Jazeera will provide working capital and access to non-recourse credit
facilities, up to an agreed amount for the purchase of required equipment
and other operational needs.
• D1 Oils Arabia will be the exclusive representative in the Kingdom of
Saudi Arabia for the products and services offered by D1 Oils.
The formation of D1 Oils Arabia is expected not only to provide Saudi based
customers with innovative alternative renewable fuel solutions, but also help
stem desertification and reclaim land by the planting of jatropha on
marginalized land. As jatropha is a non-edible crop, D1 Oils is able to irrigate
the plantations with waste water that otherwise would have been difficult to
D1 Oils Arabia combines D1 Oils' know how and technology in the growing of
jatropha and the development of its biodiesel refineries, with Jazeera's
expertise in developing and marketing new technologies and its ability to ensure
supply chain efficiency.
The commissioning of the first D1 20 refinery in Saudi Arabia is expected as
soon as the plantations come on stream, which is projected to be in the second
half of 2006. More refineries will be necessary as the jatropha production
Sheikh Soued Al Blaihed, Chairman of Jazeera For Modern Technology, said:
'Jazeera is excited to be partnering with D1 Oils, who we see as the global
leader in the development of alternative fuels and biodiesel production
today, and we look forward to working with them to establish new renewable fuel
solutions and helping reduce carbon emissions. This venture will develop new
industries in Saudi Arabia which will in turn provide sources of new jobs and
environmentally directed applications.'
Karl Watkin, Chairman of D1 Oils, stated:
'We are pleased to announce the establishment of D1 Oils Arabia on the day the
Kyoto agreement comes into effect. This venture creates a great step change in
the recognition of the D1 brand on the global stage. Helping to deliver a
renewable energy solution to the world's most recognised petroleum based economy
is a huge achievement for our business.'
Philip Wood, Chief Executive Officer of D1 Oils, commented:
'This joint venture with a well experienced partner in Saudi Arabia represents a
strong endorsement of our technology and of jatropha as our feedstock of choice.
It is a perfect example of the marketing strategies we have begun to implement
during the past year. The structure significantly reduces our capital
requirement for entering this market and enables us to accelerate our plan to
make D1 the solid and trusted brand for biodiesel.'
Karl Watkin D1 Oils plc 020 7321 3885
Philip Wood D1 Oils plc 020 7321 3885
Kevin Byram/ Brunswick 020 7404 5959
Notes to editors:
D1 Oils plc is the owner of technical, marketing, logistical and other
intellectual property related to the establishment, development and harvesting
of jatropha plantations, the extraction of oil from the harvested seed and the
production of bio diesel and other valuable by-products from the vegetable oil.
This information is provided by RNS
The company news service from the London Stock Exchange