HUGE PROSPECT ON D1 OILS

D1 was originally established in 2002 to focus on the development of a portable refinery technology to produce biodiesel for the UK transport industry. During this period, it was concluded that the high cost of rape seed oil, the main feedstock for biodiesel production in Europe, renders its use commercially unattractive. As a result, D1 explored the economics, suitability and yields of a variety of specific energy crops. During 2003, jatropha curcas was identified as its feedstock of choice and the focus turned to securing output from jatropha plantations.

Jatropha was selected as D1's primary energy crop due to it's high productivity, durability and longevity. Jatropha trees can be grown on marginalised land and are durable to the elements. Furthermore, jatropha can grow in areas of minimal rainfall, although it grows better in areas of higher annual rainfall. Jatropha trees produce nuts, which contain oil, for an average of thirty years and generally have their first harvest within two years of planting. Biodiesel refined from jatropha oil complies with EN 14214, the current European standard for biodiesel. Biodiesel meeting EN 14121 specification is an approved blend when mixed with petroleum diesel.

D1 is now commercialising its D1 20 refinery able to produce eight million litres of biodiesel per annum and will utilise jatropha oil as its main feedstock. D1 believes it can maintain low production costs and produce consistent, high volume quality output through sourcing existing feedstock supplies, cultivating new yields of jatropha on existing plantations and setting up D1 20 refineries regionally. D1 is working with highly regarded agronomy and biotechnology research and development facilities in India and South East Asia and is participating in the establishment of nurseries in a variety of locations in the Asia Pacific region. These nurseries will test imported jatropha seeds against indigenous varieties to determine which will grow best under a region's climatic conditions. In addition, D1 has recently acquired the rights to a proprietary growing media which targets the specific nutritional requirements of jatropha.

The global market demand for biodiesel is growing. International energy and environmental policies have helped to create a demand for biodiesel which is estimated to reach at least 10.5 billion litres by 2010 in the European Union alone. Based on current capacity, feedstock availability and positioning in the market, the global production of biodiesel is expected to reach approximately
3 billion litres by 2010, less than one third of the projected demand in the European Union.

D1 Oils aims to become a global, sustainable, low cost producer of biodiesel and supplier of crude vegetable oil used in the production of biodiesel. To reach this objective, D1 will manage its operations regionally, securing plantation rights and establishing refinery operations in each region, thus controlling aspects of the supply chain from seed selection through to the sale of biodiesel to end customers.

To this end, D1 has established four regional operations:
UK (Teesside and London) South Africa (Johannesburg) Asia Pacific (Manila, the Philippines) and India (New Delhi).

Thanks, got it, let us see what happens

do you feel my analysis had any validity?

Im not so sure, its quite a broad article and Investment could be in any number of 'Green' companies - I m not sure that DOO would be top of the list but we'll see .

my rationalisation (not true logic!) was linked to the mention of BP in the article and their actual or potential JV with DOO and the fact that DOO have already established jatopha plantations in Saudi and, less importantly, India.

it therefore struck me that fund money might well be directed at them .... "top of the list" would be irrelevant

good news about the planting in Swaizland -

D1 to Acquire Major Site for Biodiesel Production and Distribution on Merseyside

Highlights

Major site at Bromborough in North West England to be acquired for
conversion to biodiesel production, storage and distribution
Expected initial capacity of 100,000 tonnes from conversion of the site
to biodiesel production in 2007 at an estimated capital cost that would be
lower than full construction
Strategy to increase refinery capacity by a further 100,000 tonnes in
2008
Refining operations anticipated to commence in 2007 subject to obtaining
necessary consents
Purchase consideration of 3m
D1's total UK biodiesel production capacity anticipated to reach 420,000
tonnes by end 2008

Looks positive - 27th update on results too should be interesting.

Planted or obtained rights to approximately 110,000 hectares of
jatropha: an increase of 68,000 hectares since March 2006
Crop science programme on track to deliver elite jatropha seed for 2008
planting: targeting 50% yield improvement
Acquisition of Bromborough site for conversion to biodiesel refining:
refinery capacity targets increased to 320,000 tonnes (2007) and 420,000
tonnes (2008)
Financing package to fund the roll-out of D1 20 refinery assets being
finalised
Lord Oxburgh joins as Non-Executive Director; to become Chairman in 2007

Any reaction?!

I feel these results are all in line, if not a little better than expected... I picked up 3000 shares at 199p the other day, hope these shares can get back up to the 235p mark soon.... I am a big fan of the company, shame the shares performance has not been better. A much stronger alternative to Biofuels BFC, look how they are doing!

have just re-read my post 181 ..... still hold that view

with the increased focus on green initiatives and forthcoming eu legislation for biofuels usage these have to be a good investment.
Bid rumour of july seems to have come to nothing to date however will that all change as they prove themselves as a reliable company? wouldn't be surprised if directors bought more soon.

Sort it out D1!!!
The SP s going through the floor

chart's not great i must confess ...... 200 dma shown, but i like tthe stock and the sector so as sp drops am becoming increasingly interested in adding these to the portfolio .... current sp weakness is almost certainly just a reflection of the prevailing weakness in crude.

problems at biofuels probably not helping either

do you reckon D1 could snap up bfc s plant if it goes on the cheap from the bankers?

IMO, as DOO has taken one look at BFC and walked away within a few days, i cannot see why they would want to look again ..... prob feel it better to wait for the receiver!

Good RNS yesterday ...hasnt been mentioned....deal tp supply Petroplus.......

Dont give up on the bid rumour...they must still be in talks as interims said they were at an advanced stage......and if they had failed it would surely be beneficial for the company to announce as it has done nothing for the sp.....check out the CWP chart just before the JV was announced with BP...the sp lost 2 in the 8 weeks up to announcement...jmho;0)

The deal is certainly a positive sign - hopefully the first of many. It should deliver revenues soon and also get D1 a reputation in the market as a reliable supplier which could lead to a few clients of BFC moving to DOO.
I think its only a matter of time until this one gets moving, especially at these prices.

Petroplus was at one stage a customer of BFC but "walked" after bfc encountered delays in production. Assume they have now opted for a more reliable supplier