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D1 Oils Plc (NEOS)

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Wednesday 02 May, 2007

D1 Oils Plc

Q1 Business Update

D1 Oils Plc
02 May 2007


Press Release

                        D1 Oils Q1 2007 Business Update


2 May, 2007

D1 Oils plc (D1), the UK-based global producer of biodiesel, today announces its
quarterly business update for the first quarter ended 31 March 2007.


Agronomy


Planting

Up to 31 March 2007, D1 has planted or obtained rights to offtake from a total
of 156,741 hectares of jatropha worldwide. This represents an increase of over
10,000 hectares on the total of 145,625 hectares as at 16 March 2007, as
announced in our preliminary results on 28 March 2007. The increase in planting
over the last two weeks of the quarter is accounted for predominantly by
planting in Africa, with planting under contract farming arrangements in Zambia
continuing to make particularly good progress.


The cumulative position at 31 March 2007 is summarised in the table below:

                      Managed    Contract    Seed purchase and oil     Total
                  plantations     farming     supply agreements       hectares
                                                                      
India    South              -       7,984              -                 7,984
         North East         -       8,300          2,000                10,300
         Rest               -       5,093         22,924                28,017
                            -      21,377         24,924                46,301                         
Africa   Swaziland      1,227           -          8,017                 9,244
         Zambia         2,411      20,760              -                23,171
         Rest               -           -          8,629                 8,629
                        3,638      20,760         16,646                41,044
South    China              -           -         28,000                28,000
East     Indonesia          -      31,640              -                31,640
Asia     Rest               -       4,780          4,976                 9,756
                            -      36,420         32,976                69,396
Total                   3,638      78,557         74,546               156,741



The level of investment costs and security of future oil supply from planting
are proportional to the degree of direct involvement by D1 and its partners.
Managed plantations are those farms where land and labour is controlled by D1,
either through its subsidiaries or joint venture partners. Under contract
farming, the farmer plants his own trees on his own land. D1 and its partners
assist with the provision of seedlings and the arrangement of bank finance for
planting, and offer a buyback of harvested seeds with an offtake agreement. We
provide support and advice during cultivation, and monitor the condition of the
crops. Seed and oil supply agreements are arms-length supply contracts with
third parties whereby D1, either directly or through joint venture partners, has
offtake arrangements in place over future output from jatropha plantations which
the third party is developing. D1 has limited involvement in this planting and
relies on third parties to measure and manage the crop effectively.


Plant science

Our plant science programme has gathered a sufficiently wide range of jatropha
material to support the first ever commercial breeding and product placement
trials for this crop. We have now collected more than 200 accessions of jatropha
from three different continents and over twenty countries. Using field and
laboratory data from this material, we have established a breeding process and
global trials network to identify which individual jatropha cultivars are best
adapted to the different cultivation zones. The first commercial outcome of the
plant science programme is our 'E1' elite seed material, selected for higher
yield and good biodiesel profile. We expect this seed will deliver oil yields of
2.7 tonnes per hectare under properly managed conditions when the trees attain
maturity. E1 seed multiplication is continuing in all three regions. We expect
to be able to plant 50,000 hectares with this material in 2008.


Refining and trading

We delivered our fifth D1 20 refinery unit to our Teesside site on 23 April.
This is the first of our upgraded D1 20 units and has an enhanced capacity of
10,000 tonnes per year. The commissioning of the unit will increase the
production capacity of our Teesside site to 42,000 tonnes.


Work on the first phase of operations at our Bromborough site to convert the
existing facilities for production of biodiesel continues on track. The
Environment Agency has now confirmed that biodiesel processing can be undertaken
within our existing permit.


Elliott Mannis, Chief Executive Officer of D1 Oils, commented:


'We made strong progress in planting in this first quarter, with a cumulative
total of over 156,000 hectares planted by 31 March. We are very pleased with the
progress in Zambia, where operations are now gaining momentum. Our plant science
programme continues to develop very promisingly. The delivery of our fifth D1 20
refinery to Teesside and the expansion of capacity at Bromborough reaffirm our
commitment to expand prudently our UK refining capacity in advance of the
implementation of the UK RTFO in April 2008.'


Contacts:


D1 Oils:

Graham Prince, Head of Corporate Communications
Tel:                                                 +44 (0) 1642 755580
Mobile:                                              +44 (0) 7973 323840



Brunswick Group:

Mark Antelme
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.



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