D1 Oils Plc
22 February 2005
22 February 2005
Rolls-Royce funds new D1 refinery
D1 Oils plc ('D1') today announced it has agreed terms with Rolls-Royce to
finance a D1 20 refinery. The new refinery, to be located in Durban, South
Africa, will support D1's activities in South Africa and represents a
fundamental step in establishing the D1 brand and operation in Africa.
The D1 20 refinery is expected to be built and fully operational by third
quarter of 2005. It is able to produce eight million litres of biodiesel per
annum from crude vegetable oil.
Under the offset financing arrangement, Rolls-Royce will provide a US$1million
loan over four years to D1 at preferential rates of interest. D1 believes that
further offset arrangements are an attractive method of expanding its portfolio
of refineries. It is currently estimated that there are several billion dollars
of unfulfilled offset credits worldwide.
D1 Chairman Karl E Watkin MBE said, 'This agreement, which we believe will be
the first of many, is a creative way of securing additional non-equity funding
to develop our business worldwide. We are delighted to conclude our first offset
financing deal with Rolls-Royce who is the first major corporation to understand
CEO Philip Wood said, 'This is the culmination of more than two years hard work
by the D1 team in partnership with Rolls-Royce. It is a key component of our
plan to commence refining operations in South Africa in 2005 and develop an
indigenous supply of feedstock. The whole project, when on stream, will assist
the South African Government meet its commitment to the Kyoto Protocol.'
Philip Wood D1 Oils plc 020 7321 3885
Peter Campbell 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
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