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).

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

Spoke too soon

D1 Oils Plc
29 June 2007


29 June 2007



The presentation slides for the conference call to be hosted by D1 Oils Chief
Executive Officer Elliott Mannis at 09.30am today are now available on the D1
Oils website (

http://www.d1plc.com

).


Further details of the BP call options are included in the slides. The strike
prices of the options are as follows: of the enlarged share capital, 4% at 210
pence per share; 4% at 230 pence per share; 4% at 265 pence per share; and 4% at
300 pence per share.


Dial-in details:


Participant dial-in: +44 (0) 1452 541 076
Pin: 5897646


A replay facility will be also available on

http://www.d1plc.com

. An audio-only
replay facility will also be available on:


Dial-in: +44 (0) 1452 55 00 00
Pin: 5897646 #



Contacts:


D1 Oils +44 (0) 7973 323840
Graham Prince, Head of Corporate Communications

Brunswick +44 (0) 20 7404 5959
Kevin Byram / Mark Antelme




This information is

in my not all humble opinion, DOO has now become a solid and important player in the biofuel sector, as i told you would happen ages ago ...... hard to know what sp will do in the short term, but certainly the industry will now sit up and take notice and, quite probably make DOO a t/o target within say the next 12/18 months .... the obivous preadtor would of course be BP

cynic

Did you buy into COH...could go to the high 40's next week...takeover rumour in the today's press.

no ..... will look at COH on back of your tip, but it's not a company or sector for which I have any great affinity

Something that confuses me about doo is whether they will sow the seed in marginal ground or use highly productive ground. I know they say that jatropha will establish in either but what are comparable yields. This seems to be the ethical crux of the industry

I seem to remember from previous press releases that most of their planting was taking place on what you call 'Marginal land', not i assume land known to be at higher risk to natural disaster than usual - which is what I was taught as being 'Marginal'.

I think the other major point that you're missing is that D1's fuel doesnt actually use a food crop, like ethanol is in the USA and Brazil, and so is ethcially sound on that basis. (Although it could be argued that Jathropa could be planted over food crops, but then again if its profitable the farmers can buy food elsewhere).

I think they have tested it in semi arid environments and it has proved its ability to survive with relative ease, so it could, using the information i can remember, be planted on land unsuitable to food crops.

Hope that answers something/

as i understand it, they already have large plantations already established in mrginal land in both india and saudi

GDP ..... non-food crop is exactly the point i have been making here for weeks and weeks ..... glad you are on board, or at least assume you are

Taken from advfn

GREAT COVERAGE IN TODAYS FT, GUARDIAN,TIMES,EXPRESS,INDEPENDANT AND DAILY MAIL ALL VERY POSITIVE WHICH AGAIN BODES WELL FOR NEXT WEEK. BELOW FT COMMENT


BP invests 56m in biodiesel crops
By Ed Crooksand Andrew Jack

Published: June 30 2007 03:00 | Last updated: June 30 2007 03:00

BP has made its second biofuels investment of the week, committing at least 56m to a joint venture with D1 Oils, the Aim-listed biodiesel producer.

The two companies are to set up a joint venture that will take over and develop D1's plantations of jatropha, a crop that can be grownon land not suitable forfood production. D1's shares rose 7.6 per cent yesterday to their highest level in almost a year, as investors welcomed a deal that put BP's vastly greater financial strength and global reach behind D1's product.

Elliott Mannis, chief executive of D1, said: "This is a transforming event for D1 . . . It is a huge validation of our business model."

Unlike some rival biodiesel producers - which buy vegetable oil on the open market and refine it into fuel - D1 aims to be a fully integrated business, planting and harvesting the oil-producing jatropha crop to provide it with feedstock.

The strategy appears to have paid off, as rising prices for rape seed, soya and other vegetable oils have heightened concerns over the viability of biodiesel companies.

This was highlighted this week as Biofuels Corporation, which has opened one of Europe's biggest biodiesel plants on Teesside, said shareholders faced a choice of a restructuring under which Barclayswould take over the business, or insolvency.

Under its deal with D1,BP will provide working capital for the joint venture through an initial 32m investment, while D1 will include its 172,000 hectares of plantations in India, Southern Africa and South East Asia.

The plan is to invest 80m over five years to accelerate the planting of jatropha. D1 had planned to add an extra 600,000 hectares to its plantations by 2011; the joint venture will add an extra 1m hectares, meaning that in four years' time the joint venture should have 1.2m hectares planted.

The appeal of jatropha, which grows in tropical and sub-tropical areas, is that it can be planted on wasteland and marginal land.

Philip New, BP president of biofuels, said: "In the field of biodiesel, clearly our view is jatropha is the key feedstock."

D1 has also granted BP an option to subscribe for new shares representing up to 16 per cent of its share capital at an average price of 251p a share, to raise up to 30m. D1's shares rose 18p to 259p yesterday.

However, Mr New said investors should notexpect a full bid for D1from BP.

The move also followsthis week's announcementof BP's investment, with Associated British Foods and DuPont, in a 200m project including a plant to produce ethanol from wheat and research into biobutanol, a more advanced biofuel.

anissut - 30 Jun'07 - 09:43 - 8432 of 8441

Great stuff. I think we will see some serious buying come Monday morning.

bonsoir - 30 Jun'07 - 10:14 - 8433 of 8441

FAB

fillyourboot - 30 Jun'07 - 10:22 - 8434 of 8441

LOCAL NEWCASTLE 'PAPER THE JOURNAL SAYS THAT SHARES SHOT UP 30% YESTERDAY DO THEY KNOW SOMETHING WE DON'T !!!! SEE NOTE AT BOTTOM FROM EVOLUTION SECURITIES EXTREMELY GOOD NEWS FORECASTING 25 MILLION BARRELS

SEE POST 8427 FOR FT COMMENT

BP invests in North green fuel producerJun 30 2007
By Iain Laing, The Journal

Alternative fuels producer D1 Oils has signed an 80m joint venture agreement with global oil giant BP to plant crops to turn into biodiesel.

The Middlesbrough company's shares shot up 30% yesterday after unveiling the deal to speed up production of jatropha, a fuel crop which can be easily grown on soil too poor for other useful plants.

It is huge vote of confidence in D1. Although the Teesside business is giving half of the planting programme to BP, together they will plant a million hectares over five years instead of the 600,000 planned.

D1, which has already planted more than 172,000 hectares in more than 20 countries, largely in Asia and Africa, will keep the science which transforms the plants into fuel.

BP will put in an initial 31.75m, and the companies will split the remaining investment in the 80m plan. D1 said it would sell some of the biodiesel, BP was likely to sell some and some would also be sold to third parties.

Under the deal, BP also has an option to buy new D1 shares, representing about a sixth of the enlarged company, at an average price of 251p.

D1 chief executive Elliott Mannis 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."

BP was one of a number of companies rumoured to be talking to D1 with a view to a possible takeover last July. But D1 never named any suitor and abandoned talks five months later, although leaving the way open for an oil company to take a large stake.


Firms like BP and other large petroleum companies are keen to secure a supply of biofuel to meet UK government regulations that 5% of automotive fuel must be made up of biofuels by 2010.


But biofuels are becoming controversial because they have put up food prices as farmers swap from producing food crops to biofuels that are often subsidised.


D1 said it hopes to raise production to 2.7 tonnes of oil per hectare from 1.7 tonnes when trees mature after five or six years.


Evolution Securities analysts said in a note that the D1 plantations should produce around 3 billion litres of crude jatropha oil per year when mature, which equalled 25 million barrels. They plan to raise forecasts as "D1 has now moved decisively to become an upstream producer".


Iain Conn, chief executive of BP's refining and marketing business, said: "This joint venture is a further milestone in our strategy to develop real avenues to contribute to global energy supplies in ways that are sustainable and progressive."

Evolution Securities analysts said in a note that the D1 plantations should produce around 3 billion litres of crude jatropha oil per year when mature, which equalled 25 million barrels. They plan to raise forecasts as "D1 has now moved decisively to become an upstream producer".