D1 Oils Plc
01 August 2006
D1 Oils Q2 2006 Planting and Refining Update
1 August, 2006
D1 Oils plc (D1), the UK-based global producer of biodiesel, announces its
quarterly agronomy and refining update for the second quarter ended 30 June
Up to 30 June 2006 D1 has planted or obtained the rights to offtake from
plantings of a total of 68,210 hectares of jatropha worldwide. This represents
an increase of 26,110 hectares on the total planting of 42,100 hectares up to 31
March, as announced on 26 April, and exceeds internal targets.
The bulk of the increase in planting for the quarter is accounted for by
operations in South East Asia, primarily in Indonesia. Our global planting
programme is determined by the changes in the seasons, and the beginning of
summer in the Indian subcontinent and autumn in Southern Africa determines that
only limited planting is possible in the second quarter of the calendar year.
Planting will recommence in India and Southern Africa in the third quarter.
Weather conditions in South East Asia are suitable for planting throughout the
The cumulative position at 30 June is summarised in the table below:
Managed Contract Seed purchase and Total
plantations farming oil supply agreements
India - 10,505 16,118 26,623
Southern 5,155 - 2,000 7,155
South - 26,693 7,739 34,432
Total 5,155 37,198 25,857 68,210
Managed plantations are those farms where the land and labour is directly
controlled by D1. In contract farming individual farmers purchase seed and
seedlings from and enter into offtake agreements with D1. Trees are planted on
the farmers' own land. Seed purchase and oil supply agreements represent offtake
contracts over existing jatropha planting.
Our refinery programme is on track with the first four D1 20 production units
now in place at our new refinery centre in Middlesbrough. We expect all four
units to be in production by the end of September 2006, creating an interim
capacity of 32,000 tonnes per annum. The first unit has now been run at 100% of
flow sheet while successfully producing biodiesel from soya oil.
The D1 20 has a capacity of 8,000 tonnes per annum and has been successfully
tested on a range of feedstocks including rapeseed, soya, palm olein and
Following the adoption of the Fuel Tax Bill 2006 in Australia, effective 1 July
2006, fuel tax arrangements have been rationalised in relation to mineral diesel
and biodiesel. Following these amendments, credits have been provided to mineral
diesel for off road use, power generation and consumption in large trucks. In
response to these amendments we are reviewing with our local partners the
business plan for D1 Australia Limited, to which an exclusive refinery franchise
for the Australian and New Zealand markets was granted in May 2006.
The first shipment of 2,000 tonnes of soya vegetable oil for refining into
biodiesel was delivered to the Middlesbrough refinery site from the wharf on the
River Tees in June. We expect inbound tanker shipments to rise to 6,000 tonnes
per month by the time the refinery site reaches 72,000 tonnes of capacity.
Elliott Mannis, Chief Executive Officer of D1 Oils, commented: 'This is an
excellent result, with planting up over 60%. It exceeds expectations for a
quarter in which seasonal weather patterns limit continuous planting to South
East Asia. Given that the next quarter will see both continued planting in South
East Asia and a resumption of planting in India and Southern Africa, the
progress is very promising. Although we are reviewing our refinery franchise
business in Australia in response to changes in the tax regime, our UK refinery
deployment programme is proceeding well and we are excited at the prospect of
having the first refinery cluster in full production by the end of September.'
Graham Prince, Head of Corporate Communications
Tel: +44 (0) 1642 755580
Mobile: +44 (0) 7973 323840
Tel: +44 (0) 20 7404 5959
Notes to Editors
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.
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