25th May 2006 10:08
D1 Oils Plc25 May 2006 RNS Release Annual General Meeting 25 May 2006 D1 Oils plc (D1), the UK-based global producer of biodiesel, today will hold itsAnnual General Meeting. Opening the meeting, Chairman Karl Watkin will make the following statement: During 2005, the first full year of D1's operation as a public company, we madegood progress in establishing the foundations on which to build our globalbiodiesel business. We achieved our key planting and refining targets and learntmuch about where and how to prioritise our activities. Since the year end, ourmanagement, led by a new Chief Executive, reaffirmed our intention to be aglobal leader in biodiesel and we are now striving to take advantage of thegrowing international push for renewable fuels. Our strategy is firmly set ondelivering value from earth to engine through our three core activities ofagronomy, refining and trading. In agronomy, we are pioneering the science, planting and production of inediblevegetable oils to significantly enhance crop yields. We announced in our mostrecent quarterly update on 26 April, that, as of 31 March 2006, we have plantedor obtained the rights to offtake from a total of 42,100 hectares of jatrophaplanting worldwide. We anticipate further planting under existing arrangementseach year, and we continue to enter into further planting that will delivergreater value. We expect the bulk of this planting to be focused on low capitalintensive contract farming and seed purchase and oil supply agreements. Our refining business has delivered a practical, modular biodiesel refinery, theD1 20, which is now arousing significant interest worldwide and I am delightedto announce today that : • The first D120 is now producing biodiesel on Teesside and production is being increased to full capacity of 8,000 tonnes a year • Units 2 and 3 have been delivered and a fourth will be delivered to the site today for commissioning • The first four units will be in full production by the end of September 2006, creating an interim capacity of 32,000 tonnes per annum • We will deploy to Middlesbrough the five additional units we have committed to produce by the end of this year, creating an installed interim capacity of 72,000 tonnes per annum by year end • During 2007 we intend to deploy integrated combinations of D1 20 units in the UK, adding approximately 150,000 tonnes of new capacity. Although this process is at an early stage, we intend our total UK biodiesel production capacity to exceed 220,000 tonnes by the end of 2007 • With an operating capacity of this scale, we will be in a position to meet a major proportion of the growing demand for biodiesel created by the introduction of the UK's Renewable Transport Fuel Obligation (RTFO) • Our target is to refine a minimum of 150,000 tonnes of biodiesel in calendar year 2007 • Our analysis indicates that our combination refineries can produce biodiesel on terms which are competitive with larger plants. In addition our refineries can be ordered, installed and made operational in a significantly shorter time frame, and at lower risk and lower cost than larger plants, enabling refinery operators to generate revenue more quickly • The market is recognising the performance and flexibility of the modular D1 20. We expect therefore to build on the success of the recently announced Australia-New Zealand franchise in other areas soon • D1 has created 10,000 new jobs in areas designated as suffering from rural poverty, making a very real difference to the economies of developing countries We are exploring a number of options to put in place a trading business whichwill source, transport and trade the commodities necessary to support ouragronomy and refining operations. The operational management of the business has been considerably strengthenedunder Elliott's stewardship, and the Board believes the business to be firmlyset to deliver its earth to engine global strategy. Contacts: D1 Oils: Graham Prince, Head of Corporate CommunicationsTel: +44 (0) 1642 755580Mobile: +44 (0) 7973 323840 Brunswick Group:Gill Ackers, PartnerTel: +44 (0) 20 7404 5959 Notes to Editors D1 Oils plc is a UK-based global producer of biodiesel. We are building a globalsupply chain and network that is sustainable and delivers value from"earth-to-engine". Our operations cover agronomy, refining and trading. We arepioneering the science, planting and production of inedible vegetable oils; wedesign, build, own, operate and market biodiesel refineries; and we source,transport and trade seeds and seedlings, seedcake, crude vegetable oils andbiodiesel. Our vision is to be the world's leading biodiesel business. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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