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).

Goldmann Sachs has a Buy Note out on DOO to 280p.....;0)

Goldmann Sachs has a Buy Note out on DOO to 280p.....;0)

200 mda tracking upwards....;0)

very bleak day today but for no obvious reason at all

thats DOO's speciality

i didnt realise it was that big !! that screws over my portfolio dearly - BUT then doo rebounds the next day and the people that made it loose 20% in the first place can buy back low and make a nice profit when the sp returns to a reasonabl;e value.

Today's much-publicised Stern Report should promote a lot of focus and interest on alternative fuel companies such as DOO ...... (my own view!) is that this the best bet between BFC (looks to have too many financial troubles for comfort) and GTL (right idea; wrong country; expensive to produce).

There's plenty in quite recent earlier posts to show why I think this company has an excellent future, but (of course!) make up your own minds.



Footnote
Some of the alleged proposals in the Stern Report sound totally nuts to me.

VAT on European flights, reads like just another juicy source of revenue for the government and nothing whatever to do with "green issues". Is the intent really to stifle intra-European business (both biz and leisure) and seemingly make it better "value" to fly further afield for holidays?

Packaging (back in your boxes you SEO fans!) .... Why target the consumer so heavily? How about tackling the producers of the proposterous packaging that comes with (say) computers? Huge cardboard boxes and a trailer-load of polystyrene; ever tried getting rid of it? Or silly and simple wasteful things, like over-sized tubs on yoghurt - 1/4 inch of unnecessary lip at the base to make the product content look larger.

Yes i agree but they have to comprimise and please a lot of different groups with different views.
I think Symphony are well placed, as is DOO and GTL.
Don't agree that GTL are in the wrong market.

D1 Oils Plc
05 October 2006


5th October, 2006

D1 Oils Concludes First Major Offtake Deal for Biodiesel

D1 Oils plc (D1), the UK-based global producer of biodiesel, has concluded its
first major UK offtake contract for biodiesel. The contract covers the sale of
approximately 24,000 tonnes of biodiesel over a twelve month period to
Petroplus Refining Teesside Limited, a division of Petroplus, the UK's largest
independent refiner of crude oil and distributor of petroleum products.
Petroplus has a leading position in the UK commercial diesel market and is a
major supplier of biodiesel through its Bio-plus branded fuel.

This contract accounts for approximately three quarters of the first commercial
product from D1's newly commissioned D1 20 refineries now operating in
Middlesbrough. D1 currently has 32,000 tonnes of operating refining capacity in
Middlesbrough and expects to expand UK production capacity to 320,000 tonnes by
the end of 2007 and 420,000 tonnes by the end of 2008. The first deliveries to
Petroplus are expected to take place before the end of the year.

Elliott Mannis, D1's Chief Executive Officer, stated:

'We are proud to announce our first major UK offtake contract for biodiesel and
to welcome Petroplus as our first major client. All four of our Middlesbrough
refineries are now in beneficial operation and producing biodiesel for sale. We
are delighted that our commercial product will be supplied to the market under
one of the UK's established biodiesel brands. We aim to conclude further
agreements in due course to sell out the balance of production of the Teesside
site, which we have brought to full commercial operation in less than six
months.'

Stephen Thomason, Marketing Director of Petroplus Refining Teesside Ltd stated:

'Petroplus is very pleased to have concluded an offtake agreement with a local
biodiesel manufacturer in the North East. We are looking forward to a
successful working relationship with D1 Oils plc.'

How could D1 Oils mislead the public for more than 3 weeks on such miscalculations!
Reducing its capacity from 320,000 tonnes (as above) to only 100,000 tonnes by the end of 2007



OFFICIAL CORRECTION D1 Oils targets 100,000 tonnes refining capacity in 2007
AFX

(Company correcting time period for Middlesbrough capacity target to 2007 from 2006. Recasting lead.)

LONDON (AFX) - UK biodiesel producer D1 Oils PLC said it intends to deploy a further six D1 20 units to increase biodiesel production capacity at its Middlesbrough refinery to around 100,000 tonnes during 2007 from 32,000 tonnes at present.

The news accompanied an announcement that D1 Oils today is hosting a site visit for investors and analysts to demonstrate progress in agronomy and refining.

The company said investors and analysts will visit the Netherlands where D1 is carrying out its jatropha crop science programme, and will be given a tour of the Middlesborough site.

newsdesk@afxnews.com

that's nuts! mistake is fine (sort of), but not to realise for a month is close to gross negligence

This boils down to bad management

Elliott Mannis, D1's Chief Executive Officer didn't say he is pleased with 100,000 tonnes by the end of 2007

From todays FT......


*D1 Oils, a rival biodiesel producer to Biofuels, looks good value to Evolution who said its 300p price target appeared conservative and reiterated a "buy" recommendation after a company visit. D1's crop science programme is developing higher yielding crops of the jatropha seed. D1 Oils dipped 0.6 per cent to 194p.

Copyright The Financial Times Limited 2006

Thoroughly agree, especially as BFC would still appear to be in severe financial straits ..... doubled my own modest holding in DOO just the other day and may even buy a few more

3 Sounds good, nice article in shares mag yesterday but again they say 320,000 tonnes by 2007 from 32,000.

Evolution say they visited the plant the other day so they must be happy with whats been said...ive emailed the company about the discrepancy...if i hear anything ill let yoo know.....

Does no one proof read the news they release from D1, its very poor and sends the out entirely the wrong message.
Also, in my experience, when analysts state 'BUY' or reiterate their recommendation the S.P. tends to react positviely, but not for D1!

I rang the company last week and they said they had asked the FSA to investigate the sp movements...it would appear someone wants to keep the sp below 220p.....

0ooo - no wonder the S.P is so erratic