D1 Oils Plc
14 June 2006
14 June, 2006
D1 Oils Concludes Jatropha Oil Supply Agreement in India
Signs Memoranda of Understanding for Indian Seed Purchase Agreements
Land Allocation for Planting Increased in Zambia
D1 Oils plc (D1), the UK-based global producer of biodiesel, has signed an oil
supply agreement covering 14,000 hectares of Jatropha curcas, its primary
feedstock, in northern India. D1 has also signed Memoranda of Understanding
(MOU) for seed purchase agreements from an additional 35,000 hectares of
planting in central India. In Africa, D1 has been allocated over 155,000
hectares of new land for jatropha planting in Zambia.
Under an oil supply agreement concluded between D1 and the Rural Power Marketing
Company Pvt. Ltd. (RPMC), an established agri-business consultancy, RPMC will
develop jatropha plantations of 10,000 hectares of jatropha in Uttar Pradesh and
4000 hectares in Himachal Pradesh in 2006. Over the next three years RPMC
intends to increase planting to 100,000 hectares in Uttar Pradesh and 50,000
hectares in Himachal Pradesh. The planting will be carried out through a
combination of RPMC managed plantations and contract farming. The crude jatropha
oil (CJO) produced will be supplied by RPMC to D1 for the production of
biodiesel. D1 will provide RPMC with jatropha seed and technical agronomy
support to facilitate planting and training of farmers.
D1's Indian joint venture, D1 Mohan Bio Oils, has also signed MOUs for seed
purchase agreements with two Non-Governmental Organisations (NGOs) working in
rural development in Madya Pradesh:
• Saraswati Mahila Samiti Namli intends to plant about 15,000 hectares of
land with jatropha during 2006-07 and increase planting to 30,000 hectares
in subsequent years.
• Global Heaven Social Society intends to plant an initial 20,000 hectares
of land with jatropha during 2006-07 and to increase planting to 40,000
hectares in subsequent years.
The NGOs will procure jatropha seed from planting and deliver it to D1 regional
procurement centres where the seeds will be crushed for production of CJO.
D1 has been allocated 155,300 hectares of new land in Zambia for planting of
jatropha. The bulk of the land has been allocated to D1 Zambia Limited (D1
Zambia) by tribal communities with the support of the Zambian Government and is
intended for planting over the next five years. The new allocations bring the
total land available for jatropha planting in Zambia by D1 to over 174,200
hectares. The new planting is to be undertaken on a contract farming basis in
partnership with the tribal communities. D1 will provide technical advice and
seeds for planting and enter into offtake agreements with farmers to purchase
the harvested seed.
D1 Zambia is already undertaking jatropha planting in Zambia on a land
allocation of 15,000 hectares in the Northern Province in a Public Private
Partnership (PPP) initiative with the Kachumu Community Development Network
Trust, and on 3,300 hectares in the Eastern and Central provinces in a joint
venture with Stancom and Alliance 1 Tobacco. D1 Zambia is also operating a
managed plantation of 600 hectares in the Southern Province with the Zambian
Ministry of Agriculture. D1 Zambia is a member of the Zambian Government's Task
Force Committee on Renewable Energy to develop a policy on biodiesel
incorporating regulations and standards for the country.
Elliott Mannis, D1's Chief Executive Officer, said:
'These announcements demonstrate our ability to roll out our agronomy operations
and expand jatropha planting globally through a mix of contract farming and oil
and seed supply agreements. The rural communities in the regions covered by both
the Indian agreements and the Zambian planting allocations stand to benefit
significantly from the increase in rural employment and income generation that
we are facilitating through the planting of jatropha as an energy crop. The
agreement with RPMC in particular offers us access to planting in Uttar Pradesh
in northern India, an area with considerable scope for jatropha. We will look to
develop the Indian agreements into solid working relationships that can be
expanded to cover seed crushing, the production of crude jatropha oil and
byproducts and ultimately refining of biodiesel.'
He added, 'The extent of the new land allocations in Zambia further demonstrates
the depth of support we are receiving from the Zambian Government and Tribal
Communities. We intend to push ahead with planting on this land over the next
five years to build a sustainable jatropha-based biodiesel industry in Zambia.'
Graham Prince, Communications Director
Mobile: +44 (0) 7973 323840
Tel: +44 (0) 20 7404 5959
Notes to Editors
D1 Oils plc
D1 Oils plc is a UK-based global producer of biodiesel. We are building a global
supply chain and network that is sustainable and delivers value from
'earth-to-engine'. Our operations cover agronomy, refining and trading. We are
pioneering the science, planting and production of inedible vegetable oils; we
design, build, own, operate and market biodiesel refineries; and we source,
transport and trade seeds and seedlings, seedcake, crude vegetable oils and
biodiesel. Our vision is to be the world's leading biodiesel business.
Rural Power Marketing Company
Rural Power Marketing Company Pvt. Ltd. (RPMC) is a team of agribusiness
consultants promoting biodiesel and its byproducts. RPMC has been operating in
this field for over five years under the name of Amba Agri Clinic and Agri
Business Center, providing farmers and consumers with agro-farming solutions
available through its collaborations.
Saraswati Mahila Samiti Namli
Saraswati Mahila Samiti Namli is an NGO working in Western Madhya Pradesh (MP)
on rural development projects including the creation of self help groups (SHGs),
women & child development, social development and environmental awareness.
Having worked over many years in MP, the organisation has developed a strong
network among the farmers and local authorities.
Global Heaven Social Society
Global Heaven Social Society is constituted by young energetic group in eastern
MP in rural development programmes including education, watershed management,
and environmental awareness and has developed a strong network among farmers and
This information is provided by RNS
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