14th Jun 2006 08:56
D1 Oils Plc14 June 2006 14 June, 2006 D1 Oils Concludes Jatropha Oil Supply Agreement in India Signs Memoranda of Understanding for Indian Seed Purchase Agreements Land Allocation for Planting Increased in Zambia D1 Oils plc (D1), the UK-based global producer of biodiesel, has signed an oilsupply agreement covering 14,000 hectares of Jatropha curcas, its primaryfeedstock, in northern India. D1 has also signed Memoranda of Understanding(MOU) for seed purchase agreements from an additional 35,000 hectares ofplanting in central India. In Africa, D1 has been allocated over 155,000hectares of new land for jatropha planting in Zambia. India Under an oil supply agreement concluded between D1 and the Rural Power MarketingCompany Pvt. Ltd. (RPMC), an established agri-business consultancy, RPMC willdevelop jatropha plantations of 10,000 hectares of jatropha in Uttar Pradesh and4000 hectares in Himachal Pradesh in 2006. Over the next three years RPMCintends to increase planting to 100,000 hectares in Uttar Pradesh and 50,000hectares in Himachal Pradesh. The planting will be carried out through acombination of RPMC managed plantations and contract farming. The crude jatrophaoil (CJO) produced will be supplied by RPMC to D1 for the production ofbiodiesel. D1 will provide RPMC with jatropha seed and technical agronomysupport to facilitate planting and training of farmers. D1's Indian joint venture, D1 Mohan Bio Oils, has also signed MOUs for seedpurchase agreements with two Non-Governmental Organisations (NGOs) working inrural development in Madya Pradesh: • Saraswati Mahila Samiti Namli intends to plant about 15,000 hectares of land with jatropha during 2006-07 and increase planting to 30,000 hectares in subsequent years. • Global Heaven Social Society intends to plant an initial 20,000 hectares of land with jatropha during 2006-07 and to increase planting to 40,000 hectares in subsequent years. The NGOs will procure jatropha seed from planting and deliver it to D1 regionalprocurement centres where the seeds will be crushed for production of CJO. Zambia D1 has been allocated 155,300 hectares of new land in Zambia for planting ofjatropha. The bulk of the land has been allocated to D1 Zambia Limited (D1Zambia) by tribal communities with the support of the Zambian Government and isintended for planting over the next five years. The new allocations bring thetotal land available for jatropha planting in Zambia by D1 to over 174,200hectares. The new planting is to be undertaken on a contract farming basis inpartnership with the tribal communities. D1 will provide technical advice andseeds for planting and enter into offtake agreements with farmers to purchasethe harvested seed. D1 Zambia is already undertaking jatropha planting in Zambia on a landallocation of 15,000 hectares in the Northern Province in a Public PrivatePartnership (PPP) initiative with the Kachumu Community Development NetworkTrust, and on 3,300 hectares in the Eastern and Central provinces in a jointventure with Stancom and Alliance 1 Tobacco. D1 Zambia is also operating amanaged plantation of 600 hectares in the Southern Province with the ZambianMinistry of Agriculture. D1 Zambia is a member of the Zambian Government's TaskForce Committee on Renewable Energy to develop a policy on biodieselincorporating regulations and standards for the country. Elliott Mannis, D1's Chief Executive Officer, said: "These announcements demonstrate our ability to roll out our agronomy operationsand expand jatropha planting globally through a mix of contract farming and oiland seed supply agreements. The rural communities in the regions covered by boththe Indian agreements and the Zambian planting allocations stand to benefitsignificantly from the increase in rural employment and income generation thatwe are facilitating through the planting of jatropha as an energy crop. Theagreement with RPMC in particular offers us access to planting in Uttar Pradeshin northern India, an area with considerable scope for jatropha. We will look todevelop the Indian agreements into solid working relationships that can beexpanded to cover seed crushing, the production of crude jatropha oil andbyproducts and ultimately refining of biodiesel." He added, "The extent of the new land allocations in Zambia further demonstratesthe depth of support we are receiving from the Zambian Government and TribalCommunities. We intend to push ahead with planting on this land over the nextfive years to build a sustainable jatropha-based biodiesel industry in Zambia." Contacts: D1 Oils:Graham Prince, Communications DirectorMobile: +44 (0) 7973 323840 Brunswick Group:Mark AntelmeTel: +44 (0) 20 7404 5959 Notes to Editors D1 Oils plc 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. Rural Power Marketing Company Rural Power Marketing Company Pvt. Ltd. (RPMC) is a team of agribusinessconsultants promoting biodiesel and its byproducts. RPMC has been operating inthis field for over five years under the name of Amba Agri Clinic and AgriBusiness Center, providing farmers and consumers with agro-farming solutionsavailable through its collaborations. Saraswati Mahila Samiti Namli Saraswati Mahila Samiti Namli is an NGO working in Western Madhya Pradesh (MP)on rural development projects including the creation of self help groups (SHGs),women & child development, social development and environmental awareness.Having worked over many years in MP, the organisation has developed a strongnetwork among the farmers and local authorities. Global Heaven Social Society Global Heaven Social Society is constituted by young energetic group in easternMP in rural development programmes including education, watershed management,and environmental awareness and has developed a strong network among farmers andcommunities. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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