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).

certainly BP were the strongly rumoured party many months ago

Let's hope it doesn't do a pipex, media driven ramping!

I should think joining D1 is the easiest option for BP into Biofuels - saves setting up their own infastrucutre .
In a couple of years if the JV does develop then i presume BP would like to take D1 out with a bid.

hope that is not sour grapes falco! ...... DOO, imo, is in any case one of the better and more promising biofuel producers with or without the lnk with BP

Hello cynic I do have some sour grapes re pxc. as I am holding at a paper loss after being taken in by the recent surge of enthusiam, though a sale of voice and broadband to tiscali sounds fairly imminent. The situation with doo at the moment is in fact similar. Lots of press speculation re takeover or tie up, acknowledgement by management that a tie up is on the cards and bundles of optimism for next week. Tie-ups are evidently complex and BP sounds like it has done a major feasibility study into biofuels .The competitive advantage of Doo having a monopoly on production, processing and intellectual property puts them in a strong position but I have a twinge of caution because of the recent pxc experience.

PXC is much more complex than DOO ...... in any case, DOO's tie up with BHP has been on the cards for almost a year ...... even without it, for reasons that i have expounded several times, i think DOO is a much better proposition than either (say) GTL or BFC

they're tying up with BHP Biliton now>

senile dementia! .... sorry!

lol......could a Golden Cross happen tmrw.......i think maybe it could!!!!! ;O)

no, cos 200 dma is still falling ...... but not important in this instance

Tmrw should be interesting....;O)

why?

Womens Intuition....;O)

D1 Oils Re Joint Venture

RNS Number:2841Z
D1 Oils Plc
29 June 2007


29 June 2007


D1 Oils and BP to establish global Joint Venture to plant jatropha


D1 Oils plc, the UK-based global producer of biodiesel, plans to establish a
global Joint Venture with BP to create a world-leading business in Jatropha
curcas: D1-BP Fuel Crops Limited.


Jatropha is an oilseed tree that grows in tropical and sub-tropical regions and
produces high yields of inedible vegetable oil that can be used to produce
high-quality biodiesel. Jatropha can grow on a wide range of land types,
including non-arable, marginal and waste land. Jatropha does not compete with
food crops for good agricultural land or result in the destruction of
rainforest.



Highlights


* Establishment of a 50:50 Joint Venture to undertake global planting of
jatropha
* Target to plant one million hectares over four years
* Initial contribution of parties:

- D1 planting to date and planting business

- BP working capital of #31.75 million through equity in the
Joint Venture

* Total Joint Venture funding requirement of approximately #80 million
over five years
* Plant science remains 100 per cent. owned by D1
* D1 to grant BP an option to subscribe for new shares representing 16
per cent. of its enlarged share capital at an average price of 251 pence


*Major global business to plant jatropha as sustainable biodiesel
feedstock
* Endorsement by BP of D1's sustainable feedstock strategy
* Potential to produce low-cost, volume supplies of inedible oil for
biodiesel
* Use of marginal and waste land and land unsuitable for arable crops
* No competition with high biodiversity value rainforest
* Significant job creation and value to local communities


Under the terms of the Joint Venture Agreement signed today (subject to D1
shareholder approval), D1 and BP will work together exclusively on the
development of jatropha as a sustainable energy crop, including the planting of
trees, harvesting jatropha grain, oil extraction and transport and logistics.
Production of jatropha oil for refining into biodiesel is expected to begin in
2008.


D1 Oils Plant Science Limited, D1's plant science business, will act as the
exclusive supplier of selected, high yielding jatropha seeds and seedlings to
the Joint Venture. The strategy for the Joint Venture sees it planting Elite
seed in greater quantities than D1's stand alone plan.


With the conclusion of this transaction D1 will comprise, in its upstream
business, its wholly owned plant science operations together with the IP in
plant science, in addition to 50 per cent. of a global planting joint venture
with BP. In its downstream operations, the business will include, as it does
now, its wholly owned interests in refining and trading.



Commenting on the announcement, Lord Oxburgh of Liverpool, Chairman of D1 Oils
plc said:


"Biodiesel is a young industry, but is rapidly becoming an established part of
the global renewable energy landscape. It is crucial that we develop supplies of
alternative, inedible vegetable oils like jatropha that are not subject to the
same demand pressures as food oils and that are grown on non-essential land.
This partnership with BP strengthens D1's strategy of delivering commercial
volumes of jatropha oil at competitive prices, whilst truly supporting the
communities in which we operate."



Elliott Mannis, Chief Executive Officer of D1 Oils plc, said:


"This is a transforming event for D1. BP's decision to join us in this new
venture is a significant endorsement of our strategy to develop jatropha for the
production of sustainable biodiesel. It shows we have come a long way. BP's
proven logistical, managerial and financial support will enable a significant
enhancement and acceleration of the scope and pace of jatropha planting."



Philip New, Head of BP Biofuels, said:


"As jatropha can be grown on land of lesser agricultural value with lower
irrigation requirements than many plants, it is an excellent biodiesel
feedstock. D1 Oils' progress in identifying the most productive varieties of
jatropha means that the joint venture will have access to seeds which can
substantially increase jatropha oil production per hectare."

Told yoo today would e interesting!!!! ;O)

quite so! ...... have ben telling peeps to buy for ages instead of GTL and BFC, but as usual, few followers ..... their loss, literally and metaphorically!

.

Price was up 16% earlier but down to 5% now.

fine by me ...... don't think i would have sold earlier even if i had been on line ...... would now expect some consolidation as share has been outperforming for a little while now

Buy on the rumour and sell on the fact! BP has options to buy at 251 which I guess gives a fair value