16th Feb 2005 07:00
D1 Oils Plc16 February 2005 D1 OILS IN DEAL WITH SAUDIS OVER BIODIESEL A British company is helping one of the world's biggest oil producers, SaudiArabia, to develop renewable biodiesel in Saudi Arabia. D1 Oils plc ("D1 Oils"),a low cost producer of biodiesel, is creating D1 Oils Arabia Limited withJazeera For Modern Technology. D1 Oils Arabia will be a 50/50 joint venture andwill manage the plantation of jatropha trees which D1 Oils uses as feedstock toproduce renewable biodiesel. D1 Oils Arabia will also install refineries inSaudi Arabia and expand the D1 Oils brand throughout Saudi Arabia and into otherGulf 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 basedcustomers with innovative alternative renewable fuel solutions, but also helpstem desertification and reclaim land by the planting of jatropha onmarginalized land. As jatropha is a non-edible crop, D1 Oils is able to irrigatethe plantations with waste water that otherwise would have been difficult todispose of. D1 Oils Arabia combines D1 Oils' know how and technology in the growing ofjatropha and the development of its biodiesel refineries, with Jazeera'sexpertise in developing and marketing new technologies and its ability to ensuresupply chain efficiency. The commissioning of the first D1 20 refinery in Saudi Arabia is expected assoon as the plantations come on stream, which is projected to be in the secondhalf of 2006. More refineries will be necessary as the jatropha productionincreases. 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 globalleader in the development of alternative fuels and biodiesel productiontoday, and we look forward to working with them to establish new renewable fuelsolutions and helping reduce carbon emissions. This venture will develop newindustries in Saudi Arabia which will in turn provide sources of new jobs andenvironmentally directed applications." Karl Watkin, Chairman of D1 Oils, stated: "We are pleased to announce the establishment of D1 Oils Arabia on the day theKyoto agreement comes into effect. This venture creates a great step change inthe recognition of the D1 brand on the global stage. Helping to deliver arenewable energy solution to the world's most recognised petroleum based economyis 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 astrong 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 implementduring the past year. The structure significantly reduces our capitalrequirement for entering this market and enables us to accelerate our plan tomake D1 the solid and trusted brand for biodiesel." Enquiries Karl Watkin D1 Oils plc 020 7321 3885Philip Wood D1 Oils plc 020 7321 3885Kevin Byram/ Brunswick 020 7404 5959Gill Ackers Notes to editors: D1 Oils plc is the owner of technical, marketing, logistical and otherintellectual property related to the establishment, development and harvestingof jatropha plantations, the extraction of oil from the harvested seed and theproduction 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 ExchangeRelated Shares:
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