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).

not the greatest of figures and forecasts are they!

LOOKS LIKE IT MAY DRIFT BACK TO 130-140P

maybe, though would rather NRK did!

good to se some positive action here today, though for no obvious reason (as yet) .... sp has at last broken back above the important 200 dma ...... as well-posted, i like this company as i think it one of the few biofuel companies that has a genuine future .....

I think D1 has proved itself to be an extremely volatile share cynic so reading into the graph may not provide as much insight as you and so many others hope.

i have held these for quite a while and expect to continue to do so ..... yes the share is reasonably though not especially volatile, but a break above 200 dma is often of some significance especially if with some impetus

Hi Guys....forgot to post on here last week....Ins topping up as per rns x 2 of yesterday........ML and Blackrock....also rumours that somone wants to buy 29.9% of the company.....keep watching......good day again today with strong finish...looks like they are still topping up....fingers crossed the sp gets going again :O)

That's very interesting Barefoot - thanks. Could explain the recent positive movement!

sounds like "rumour rumour" to me rather than anything of substance ...... more critical in the immediate is whether or not sp can now break through 200p which also coinsides with 50 dma .... do not be surprised if it pauses for breath first.

Hi Cynic, it did break through 200p on 04Oct - up to 209 - but then sank back again. It's up to 200-201 again now so we seem to be heading in that direction. Still a long way from the heady heights of 280p in July, though. Rumours do tend to shift the sp - "buy on the rumour, sell on the fact" is one strategy that can work.

certainly a fair comment which is especially true of the flakey E&P outfits ..... DOO looks to have at least a reasonably secure future having devised a sensible and sustainable source of base oil from which to work, albeit that there is still a fair way to go before that really comes on stream in meaningful volume .... assuredly the JV with BP is a considerable comfort.

Watching L2 today someones definitely accumulating...;o)

DOO is dropping to 180p now.

It's dropping horribly - I'm not holding this currently but will again some time.

Today I noticed that both Black Rock and Merril Lynch have been steadily increasing their holding. Would they do this if it was going down the pan??

its just d1 volatlilty . Will end the day up

Wow...gone down further to 172p within minutes.

minimal volume

Too bad this is not feasible in China.


Biofuel not feasible as alternative auto fuel in China cars - expert
AFX

BEIJING (XFN-ASIA) - The processing of gasoline and diesel from crops is not a realistic alternative for China's growing fleet of cars, said Professor Ni Weidou, an energy expert at Beijing University.

At a seminar at Tsinghua University, Ni said that 50 mln tons of grain - a tenth of China's total output - would be required in order to produce only 10 mln tons of gasoline.

'China has only 7 pct of the world's arable land to feed 21 pct of the world's population, and it isn't realistic to develop biofuel on such a wide scale,' he said.

He said that China has to figure out a way of processing vehicle fuel from coal.

'Everyone says that we have to change our energy structure, but it isn't that we like coal, but we just have no choice,' Ni said. 'We have to change the structure but there's no way to do it.'

'There are only two countries that depend primarily on coal, China and India. Why do they happen to be the two most populous countries?' he said.

The number of cars on China's roads has risen rapidly in recent years, from just five per 1,000 people in 1991 to 39 last year, according to Dai Yande of the National Development and Reform Commission's Energy Research Institute.

david.stanway@xinhuafinance.com

DOO not reliant on grain crops though but jatropha which can grow in areas where grain does not prosper- so in short a bit bemused by Mr Ni Wiedu statement unless i miss something. (by the way not a holder as yet but thinking about it- got burned too often by "green" issues")

A recent report in New scientist suggest that the rate of Co2 output into the atmosphere is 35% higher than the worst IPCC estimates.

A recent article in the FT suggested a number of funds were to be created which concentrated on "near" technologies designed to tackle climate change.

As robinhood and others have pointed out D1 's ace in the hole is the Jatropha tree that dosn't compete with food stocks and can be grown in less fertile land. Combined with the work being done with KeyGene they appear to be able to extract more than double the yield of oil.

The recent JV with BP is also a positive development and there general ability to hit targets is impresseive especially in such a new immature industry.

In a recent interview available on the d1 website The Ceo indicates that they expect to start refining from their own stocks in 2008 (admittedley when isn't stated) but it isn't that far off.

The only -ve issue as far as I can see is cheap subsidised US imports. But given the EU's general anti US feeling I can't see the EU subsidy staying in place too long especially if it threatens the EU's industry in biofuels.


At 175p maybe this is a good time to at least stock up with a small holding ?

Which is incidentally what I have done .