D1 Oils plc, the UK based low cost producer of biodiesel, today announces it is expanding in Madagascar. The Company has identified approximately 17,000 hectares of existing Jatropha plantations and has made arrangements to access the output from the plantations.
D1 Oils growing in Madagascar
D1 Oils plc, the UK based low cost producer of biodiesel, today announces it is expanding in Madagascar. The Company has identified approximately 17,000 hectares of existing Jatropha plantations and has made arrangements to access the output from the plantations. The arrangements have been made in collaboration with business-to-business aid agency BAMEX (Business and Market Expansion) of Madagascar. The trees are currently being used as supports for growing vanilla and are already yielding seeds.
The first crop of Jatropha oil bearing seeds is expected to be available from mid 2005 and harvesting is planned to commence at that time. Estimation of outputs cannot be guaranteed to be the same as detailed in the Prospectus, due to variations in the density of trees per Hectare. The Directors believe that seed yields will be consistent with the age of the trees being harvested.
The area under cultivation in Madagascar is additional to the 37,000 hectares of plantations in Africa, India and The Philippines as outlined by D1 Oils in its Prospectus at the time of flotation in October 2004. It is also in addition to approximately 6,000,000 hectares of land available to the Company under option to contract. The expansion further advances the company's objective to become the world's leading low cost producer of biodiesel and feedstock for biodiesel.
Adam Simcock, Chief Executive of D1 Africa, said: "We are delighted to be working with BAMEX in Madagascar and to be able to provide additional income for the local vanilla farmers."
Philip Wood, Chief Executive of D1 Oils plc, commented: "The number of new opportunities D1 Oils is engaged in reflects our increasing global profile. This partnership, which increases our cultivation capacity announced at flotation by nearly 50%, demonstrates the commitment and adaptability of our management team and its ability to source additional supplies of indigenous oil which will deliver revenue ahead of the first harvests from our new plantations. The plantations in Madagascar are already yielding seeds which materially reduce the working capital we would otherwise need to develop this source of supply."
Notes to editors
D1 Oils plc (DOO.L) is the owner of technical, marketing, logistics and other intellectual property, related to the establishment, development and harvesting of Jatropha plantations and the extraction of oil from the harvested seeds and the production of biodiesel from the oil, as well as valuable by-products.
D1 Oils plc successfully floated on the Alternative Investment Market in October 2004. Since the Group was founded in 2002, D1 Oils has established operations and strategic and commercial relationships in 4 regions - Europe, Africa, Asia Pacific and India. Alongside the 17,000 hectares secured in Madagascar, D1 Oils also has 37,000 hectares to cultivate and produce Jatropha oil for refining into biodiesel, as well as options on an additional 5 million hectares in India and approximately 1 million in Burkina Faso.
D1 Oils has acquired all rights to the design and manufacture of a modular mobile biodiesel refinery with the capacity of processing 8 million litres of biodiesel from crude vegetable oil per annum.
Business and Market Expansion (BAMEX)
Business and Market Expansion (BAMEX) is an aid agency funded by USAid. Their role is to put international private sector businesses together with local business partners in order to facilitate technology transfer into Madagascar and create employment.