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).

Karl Watkin sold 250,000 shares in the biodiesel producer at 268p each in July...smart founder who knows what would happened.

was going to happen, or even knew what was going to happen, or predicted what has happened by selling, never 'what would happened'.

just picked this up from cnnfn.com, but as is obvious, it is an article published in Fortune magazine ....... sorry it's a bit long, but worth reading

BP's answer to food-based ethanol
The oil giant believes an inedible plant called jatropha can ease global fuel demands. It could boost incomes in Africa and other impoverished regions too.
By Carolyn Whelan, Fortune
September 7 2007: 6:02 AM EDT


(Fortune Magazine) -- Can a poisonous plant become a biodiesel hero and help African economies in the process?

BP (Charts) thinks so. It believes jatropha - an inedible plant used for hedges that was spread around the world centuries ago by Portuguese sailors - can dent global fuel demands without using up foodstuffs such as corn, soy and sugar cane, plus boost incomes in Africa and other impoverished regions.

In June the oil giant signed a $160 million deal with British biodiesel producer Dl Oils, creating a joint venture that aims to become the world's largest producer of jatropha oil by 2011. The new company expects to have nearly three million acres under cultivation within four years and process roughly two million tons annually - or 18% of Europe's expected biodiesel demand.

"The deal with Dl is all about developing a biofuels business," says BP spokeswoman Wendy Silcock. Half of the 12 countries targeted for bulk plantings are in Africa.

Because it can grow year-round in arid soil and is inedible, jatropha won't innate food prices or take up valuable cropland. Africa is considered ideal because of its proximity to European markets and low land and labor costs. "Jatropha is low input," says Steve Douty, executive director of Dl Oils. "It survives where others don't. It also grows best 25 degrees south or north of the equator. A big chunk of Africa is in that band."

In addition, Jatropha oil can be produced commercially within three years of planting, compared with seven years for palm oil; plus, it is a living fence that keeps cattle in and sand out and can survive for 50 years. Best of all, jatropha seeds generate up to 40% of their weight in oil with ample fertilizer and water, and 30% even in scrubland - far more than soybeans' 18%.

Jatropha sap has long been used in Latin American medicines for its antibacterial qualities. The seed is used for fertilizer in Africa because it is rich in soil nutrients, and the oil is used for French soaps. But pressing oil from its seeds for energy is recent, and current production is negligible. Today jatropha accounts for less than 1% of biodiesel fuel.

High oil prices and the rising cost of food oils make jatropha attractive - as does a looming European mandate requiring that 10% of all transport fuel be biofuel by 2020. Global biodiesel output needs to grow more than ninefold to meet that demand.

Jatropha is becoming popular elsewhere as well. Energy-starved India led research into jatropha and is believed to have nearly 250,000 acres under cultivation. China reportedly has 100 times that. And in July, SE-Energy Technology announced it will build the largest U.S. biodiesel plant, using primarily jatropha, in Chesapeake, Va.

Even private equity is getting in on the act, says Turi Munthe, a London investor who is raising funds for a 124,000-acre jatropha plantation in Ghana. "Africa is the place for it."

on the back of the above, i nealy topped up .... sure glad i didn't sa sp has suddenly dropped about 149, though when calmness returns, i may well take advantage.

shorted SOLA instead!

unfortunately java does not work on any computers i attempt to access, but if i read correct D1 are at 149 ?! great value that i will try and buy.

Am currently in Chile and visited an avacado farm a few days ago, the owner knew a ot about renewable fuels and when i mentioned jathropa immediately asked me about D1. He was very knowledgable and appered to be doing very well, he suggested that buying D1 would be a very wise idea. Which may not mean much to many but this farm was very remote, although huge, and this man firmly believed in D1s idea, even commenting on the deal with BP.

DOO closed at 182 ... totally nuts!

such a joke this company with its volatility

it's not the company that's a joke, as that has a good future as far as can seen ..... the problem lies in the general scariness of the markets and the need or desire for peeps to raise cash.

and they need to sell something!!!

http://www.nytimes.com/2007/09/09/world/africa/09biofuel.html?_r=1&hp&oref=slogin

You're right...DOO hasn't come up with much good news lately

still gradually dropping...160p next support level.

the extreme weakness is very puzzling especially with very low volume - just 202k today .... shall dwell on topping up tomorrow

half year results due at end of September, based on date of full year figs

back in on the recent weakness

certainly long term i find it hard to believe that that can be a wrong move, and really ougfht to apply short term too

All the biofuel industry are not the 'in' thing now, very out of favour in fact. GTL, RVA and not to mention BFC which has gone to the dogs.

learn to differentiate between methods ..... RVA i do not know; GTL uses maize = foodstocks; BFC just got it all wrong.

DOO, however, uses jatropha which is both non-foodstock and grows happily in semi-desert and similar. It is that that that sets it apart + the fact that it now has some strong financing through its JV with BP + crude continues to rise.

anyway, i reckoned 175 was a good price so have topped up

yes certainly D1 is being recognised as the leader, future, or whatever you would like to call it in this sector. And i believe that will show in the sp through the short and long term.

D1 Oils H1 pretax loss widens on higher opg costs; names new FD UPDATE - AFX


LONDON (Thomson Financial) - D1 Oils PLC's first-half pretax loss widened on higher operating costs, but it said its strategy of focusing on sustainable, low-cost, long-term supplies of inedible feedstocks is on track despite a challenging biodiesel industry in the Europe.

The company also said it has appointed Christopher Tawney as its new finance director with immediate effect.

The UK-based global producer of biodiesel posted a pretax loss of 10.35 mln stg for the six months to June 30 against a restated loss of 4.79 mln last year. Revenue rose to 4.13 mln stg from 32,000 stg a year ago, while operating costs increased to 9.99 mln stg from 4.73 mln.

The first-half turnover reflects sales of 8,588 tonnes of biodiesel generated from its D1 20 biodiesel refineries together with product sold directly and not requiring further processes.

The company said the biofuel sector remains immature and faces several short-term challenges. High prices for edible vegetable oils mean refining profitably in Europe without significant subsidies will be difficult, it added.

However, D1 Oils said it continues to believe the medium- to long-term outlook for the industry is very promising.

The company said its refining and trading activities have been impacted by the ongoing challenges of high feedstock prices exacerbated by subsidised biodiesel imports from the US.

D1 Oils said there has been no improvement in the overall level of feedstock prices, despite running its refineries below capacity and managing stocks of vegetable oil previously purchased at lower prices.

Following the acquisition of its Bromborough site, the company began the conversion of the existing facilities to create 100,000 tonnes of initial biodiesel refining capacity.

The company has slowed the timetable for commissioning the first 50,000 tonnes of this capacity under current market conditions.

It also plans to extend the timetable for the completion of the remaining 50,000 tonnes of capacity from the end of 2007 to the first half of 2008, bringing expected total UK capacity at that time to 142,000 tonnes.

At 9.44 am, its shares had fallen 5 pct to 169.548 pence.

TFN.newsdesk@thomson.com