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D1 Oils Plc (NEOS)

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Thursday 14 April, 2005

D1 Oils Plc

Major new business developm't

D1 Oils Plc
14 April 2005

14 April 2005

State Bank of India funds jatropha cultivation

D1 Oils plc ('D1 Oils'), the low cost global producer of biodiesel, today
announced a significant boost to its  renewable fuel programme in India as  D1
Mohan Bio Oils Limited, ('D1 Mohan'), its 50:50 joint venture, signed a 
Memorandum of Understanding ('MOU)') with the State Bank of India ('SBI') to
provide Rupees 1.3 billion (approximately  £15 million) to local farmers in
Tamil Nadu to plant up to 40,000 hectares of jatropha. The harvested seeds will
have  an anticipated yield of between 100,000 and 120,000 tonnes of crude
jatropha oil per annum (assuming the full 40,000  hectares are planted).  The
costs of servicing the loans will be deducted from the price paid by D1 Mohan
for the seeds.

D1 Mohan is a joint venture between D1 Oils and Mohan Breweries & Distilleries
Limited in India.  In January this year,  D1 Mohan announced it would aim to
plant up to 100,000 hectares of jatropha across India in 2005.  The financing 
arrangements are a key component of this plan. D1 Oils has the option to export
25% of the crude oil to its  international customers, with the bulk of the crude
oil being retained for domestic bio diesel production.  The use of  bank finance
to provide farmers with the ability to purchase seedlings and planting materials
enables the business in  India to expand more rapidly and conserve working

P Chaudhuri, Chief General Manager of SBI, said, 'Small farmers and landless
labourers will benefit as we shall finance  the cultivation. They shall find a
ready market for their produce from D1 Mohan.  The loans will be realised from
the  sale of the crop.'

M. Nandagopal, Managing Director of D1 Mohan, remarked, 'We believe the creation
of a sustainable, renewable energy  programme in India with all of the
associated economic and environmental advantages is important and this agreement
is  a very good step in the right direction.'

Philip Wood, CEO of D1 Oils, commented, 'This is a further endorsement of our
jatropha programme.  Obtaining external  finance for the farmers is an important
step for D1 Mohan towards achieving its objective of a rapid, large scale 
implementation of this programme in India.'


Philip Wood                      D1 Oils plc                020 7321 3885
Kevin Byram/James Crampton       Brunswick                  020 7404 5959
David Cunningham                 Bell Lawrie White          0141 314 8105

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 biodiesel and other valuable by-products from the vegetable oil.

                      This information is provided by RNS
            The company news service from the London Stock Exchange