The main activity of Biofuels is the large scale production and exploitation of biodiesel and glycerine following the construction and commissioning of the initial plant.

Biodiesel is produced from vegetable oils and, as an environmentally friendly product, can make a significant contribution towards reducing green house gases and meeting Kyoto targets.



RNS's from BFC can be viewed at:

http://www.uk-wire.com/cgi-bin/index?search_type=3&words=bfc&go.x=17&go.y=8

http://www.biofuelscorp.com/

Well, gallick, I was brought up in a nursery and then later did physics A level - a combination of the two must have stuck. Philosophically renewable energy is a) good per se and b) involves growing green things which is i) nice and ii) helps the CO2 problem.

Am still a bit puzzled how an organic material (made of C, H, O) can produce LESS CO2 when it has also produced less residual nasties. I would have thought less residuals meant more was efficiently oxidised into H2) and CO2 - i.e. more proportionately CO2. Maybe the thermal conversion (from chemical ennergy to heat energy) is more efficient, so uses less overall than mineral diesel.

I particularly like DOO - you all must look at the recent RNS progress - India, Africa, Madagascar, China. It's SP is starting to bubble too, but may be a slightly slower burn (sic) than BFC.

>> stockdog

I have no answers to that one, and I did Physics and Chemistry A levels - although that seems a different world ago!

Will check out DOO.

regards
gk

Looks like some more ethanol has been fuel-injected into the SP again today.

>> stockdog - I like the look of the DOO chart. I will have to do some background reading. Do they have a website?

rgrds
gk

Wow, I liked the look of this one 6 months ago, shame I didnt have any spare cash at the time. Well done you guys who are in though, its going great guns...

gallick - www.d1plc.com does the trick.

Interesting question, can BFC use Jatropha beans in its plant on Teesside - could be cheaper rawstack than palm oil - given both have to be transported from tropical regions??

Food for thought!

Let me know yours.

New high posted today.

Thanks for that stockdog.

I see the goverment are giving 20% tax relief on Biofuels

>>davem

That is a substantial part of the reason for why this stock is going ballistic.

rgrds
gk

Tipped as one of the blue sky portfolio in Shares magazine this week. I will try to get hold of the article.

rgrds
gk

Gist of the article is that the government have introduced a 20p per litre tax discount in the UK for biodiesel. This subsidy is worth over 50 mill per year to Biofuels. Profits could be greater than expected as palm oil prices have fallen.

The current year to March 2005 sees losses widening to around 4 million. In the next 2 years profits should increase to 6 million and 10 million respectively. This gives an untaxed PE of 7.6 next year dropping to 5 in 2007 which one fund manager (not named) describes as dirt cheap.

rgrds
gk

Are the 6m and 10m profit forecasts made on the basis of 20p per litre duty discount?

So if the windfall 50m is not included in the forecasts, then we are looking at 56m and 60m for the first two years.

I can't see this company going into business with the expectation of making a loss of 44m and then 40m in the first two years!

The 50 mill figure does I agree need further explanation. Surely it depends on production levels, input costs etc. Will dig deeper.

Price rising again.

rgrds

Anyone who has a position with both these biodiesel co's -

Watch out for the DOO (D1 Oils) intellectual property dispute over 725,000 payment to SIF ex partner.

See RNS today.

Hence sharp drop in SP. However, full amount was provided in listing prospectus and now DOO claim not payable in full. So what's at risk should be no more than legal fees. Both parties trying to resolve via mediation in first instance.

Interesting that new technology can incite such ardour - cf SEO's cc.

Palm oil price is 23% below what it was one year ago (FT).

Anyone know how price of palm oil compares with jotropha bean oil?

>>SD

I don't think they carry jotropha bean oil in the FT!

rgrds
gk

I understand it can stain terribly!

I see DOO is up 26% since I mentioned it here on 29th Jan (post 47) and has been racing away on no news (except oddly enough for SEO fans a positive report on court case costs). As a sister stock to BFC she is starting to show her colours.

Compare BFC almost level with that date after today's sharp drop. Do you imagine people are swapping out of BFC into DOO - or is this just the sort of question that started a handbag fight on the SEO thread?

As I'm equally in both, I look forward to great success over the next few years - they haven't even produced a drop of the ould foire wahter yet.

SD

Sorry to be boring, everyone, but isn't this a beautiful RNS! I know this is a BFC board, but it seems most appropriate to mention DOO here as well. Needless to say SP up another 28.5p today.

Hope I've persuaded some of you to join the merry throng on eaerlier posts.

SD

RNS Number:6411I
D1 Oils Plc
16 February 2005





D1 OILS IN DEAL WITH SAUDIS OVER BIODIESEL

A British company is helping one of the world's biggest oil producers, Saudi
Arabia, to develop renewable biodiesel in Saudi Arabia. D1 Oils plc ("D1 Oils"),
a low cost producer of biodiesel, is creating D1 Oils Arabia Limited with
Jazeera For Modern Technology. D1 Oils Arabia will be a 50/50 joint venture and
will manage the plantation of jatropha trees which D1 Oils uses as feedstock to
produce renewable biodiesel. D1 Oils Arabia will also install refineries in
Saudi Arabia and expand the D1 Oils brand throughout Saudi Arabia and into other
Gulf area countries.

Main components to the joint venture establishing D1 Oils Arabia include:

* Jatropha will be grown on former desert land therefore converting the
desert into usable agricultural land in the long term reversing
desertification.

* Plantations of jatropha for biodiesel in Saudi Arabia will use waste
water (ie: treated sewerage water) exclusively.

* Jazeera will contribute 5000 hectares of land to be owned by the joint
venture for a pilot plantation, with access to an additional 100,000
hectares on successful completion.

* D1 Oils will provide the technical knowledge for the establishment and
ongoing maintenance of the jatropha plantations and the D120 biodiesel
refineries.

* Jazeera will provide working capital and access to non-recourse credit
facilities, up to an agreed amount for the purchase of required equipment
and other operational needs.

* D1 Oils Arabia will be the exclusive representative in the Kingdom of
Saudi Arabia for the products and services offered by D1 Oils.

The formation of D1 Oils Arabia is expected not only to provide Saudi based
customers with innovative alternative renewable fuel solutions, but also help
stem desertification and reclaim land by the planting of jatropha on
marginalized land. As jatropha is a non-edible crop, D1 Oils is able to irrigate
the plantations with waste water that otherwise would have been difficult to
dispose of.

D1 Oils Arabia combines D1 Oils' know how and technology in the growing of
jatropha and the development of its biodiesel refineries, with Jazeera's
expertise in developing and marketing new technologies and its ability to ensure
supply chain efficiency.

The commissioning of the first D1 20 refinery in Saudi Arabia is expected as
soon as the plantations come on stream, which is projected to be in the second
half of 2006. More refineries will be necessary as the jatropha production
increases.

Sheikh Soued Al Blaihed, Chairman of Jazeera For Modern Technology, said:

"Jazeera is excited to be partnering with D1 Oils, who we see as the global
leader in the development of alternative fuels and biodiesel production
today, and we look forward to working with them to establish new renewable fuel
solutions and helping reduce carbon emissions. This venture will develop new
industries in Saudi Arabia which will in turn provide sources of new jobs and
environmentally directed applications."

Karl Watkin, Chairman of D1 Oils, stated:

"We are pleased to announce the establishment of D1 Oils Arabia on the day the
Kyoto agreement comes into effect. This venture creates a great step change in
the recognition of the D1 brand on the global stage. Helping to deliver a
renewable energy solution to the world's most recognised petroleum based economy
is a huge achievement for our business."

Philip Wood, Chief Executive Officer of D1 Oils, commented:

"This joint venture with a well experienced partner in Saudi Arabia represents a
strong endorsement of our technology and of jatropha as our feedstock of choice.
It is a perfect example of the marketing strategies we have begun to implement
during the past year. The structure significantly reduces our capital
requirement for entering this market and enables us to accelerate our plan to
make D1 the solid and trusted brand for biodiesel."

Enquiries

Karl Watkin D1 Oils plc 020 7321 3885
Philip Wood D1 Oils plc 020 7321 3885
Kevin Byram/ Brunswick 020 7404 5959
Gill Ackers

Notes to editors:

D1 Oils plc is the owner of technical, marketing, logistical and other
intellectual property related to the establishment, development and harvesting
of jatropha plantations, the extraction of oil from the harvested seed and the
production of bio diesel and other valuable by-products from the vegetable oil.








This information is provided by RNS
The company news service from the London Stock Exchange

END