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D1 Oils Plc (NEOS)

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Tuesday 22 November, 2005

D1 Oils Plc

Statement re D1 Oils

D1 Oils Plc
22 November 2005

                                                                22 November 2005

               D1 Oils Signs Indian Jatropha Oil Supply Agreement

D1 Oils plc (D1), the UK-based global producer of biodiesel from renewable
energy crops, has signed an agreement with PManek Biofarms Pvt (PManek) for the
supply of crude jatropha oil (CJO) for biodiesel feedstock. PManek is a producer
of essential oils based in the Indian state of Gujarat.

Under the agreement, PManek will supply D1 with CJO to be harvested from 40,000
hectares of jatropha curcas. PManek has specialist farming expertise in the
Gujarat region, large landholdings, a local network of banking contacts and
experience in the production, storage, transport and export of essential oil

Planting will be undertaken by PManek in the region of Jamnagar in western
Gujarat, and is expected to begin in the middle of 2006 following the end of the
southwest monsoon. D1 will provide PManek with jatropha seed and technical
agronomy support to facilitate planting and training of farmers.

D1 has identified jatropha as its primary biodiesel feedstock because it does
not require arable land. Jatropha seeds are crushed to produce vegetable oil for
refining into biodiesel. The relatively dry climate and soil of Gujarat is
assessed to be ideal for jatropha planting, and mature yields from the 40,000
hectares planted could yield in excess of 100,000 tonnes of biodiesel.

India is expected to be a key location for the production and consumption of
biodiesel from jatropha. D1's Product Development Centre in Coimbatore, India,
is at the forefront of global research into the agronomy of jatropha and the
development of jatropha as a biodiesel feedstock. The largest component of D1's
increased two year planting target of 267,000 hectares will take place in India.

The agreement with PManek is one of several third party oil supply agreements D1
aims to put in place to supplement the contract farming programme being
undertaken through its joint venture, D1 Mohan Bio Oils.

Philip Wood, Chief Executive Officer of D1, said: 'Our agreement with PManek
takes D1 for the first time into North West India, an area ideally suited for
the growing of jatropha. Securing long term supplies of jatropha oil is
essential to our strategy of building a global biodiesel supply chain, and we
are investing heavily in agronomy over the next three years to deliver a new
strain of high yielding jatropha that will be the global benchmark for biodiesel
feedstock. We are confident that our strategy of combining D1's expertise in
jatropha agronomy with local planting expertise of the calibre possessed by
PManek will be successful in delivering on our long term goal of becoming a
leading global supplier of biodiesel and biodiesel feedstock.'

Pabubha V. Manek, Chairman of PManek said: 'We are pleased to associate with D1
Oils, the leaders in jatropha agronomy in India. Working with D1 will give us
access to the most advanced jatropha crop science available, which will directly
benefit the farmers. We are confident that our association will work well and
deliver exceptional success for both the farmers and our two companies.'


D1 Oils:
Graham Prince, Head of Corporate Communications
Tel: +44 (0) 20 7321 3892
Mobile: +44 (0) 7973 323840

Brunswick Group:
Helen Barnes, Associate Partner
Tel: +44 (0) 20 7404 5959

D1 Oils India
Steve Douty
Regional Director
Tel: +44 (0)20 7321 3885

Notes to Editors:

D1 Oils plc is a UK-based global producer of biodiesel from renewable energy
crops. It 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 jatropha and other
vegetable oils.

PManek BioFarms Pvt Limited was incorporated in the year 2003 with a vision to
enable farmers to increase their living standards through the cultivation and
production of essential oils. PManek's current range of products includes aloe
vera, citronella oil, lemongrass oil and palmarosa oil.

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

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