Posted by Giles Clark, London
Friday, 29 June 2007
Following months of speculation D1 Oils and BP have announced plans to
establish a global joint venture, D1-BP Fuel Crops Limited, to develop
jatropha as a sustainable energy crop. Overall the joint venture has a
funding requirement of approximately $80 million over the next five
years. Initial contributions from the two copompanies break down to the
planting to date and planting business from D1 with BP putting in
working capital of $31.75 million through equity in the joint venture.
The new company plans to plant one million hectares of jatropha in the
next four years.
Under the terms of the Joint Venture Agreement signed today (29th June),
but subject to D1 shareholder approval, D1 and BP will work together
exclusively on the development of jatropha as a sustainable energy crop,
including the planting of trees, harvesting jatropha grain, oil
extraction and transport and logistics. Production of jatropha oil for
refining into biodiesel is expected to begin in 2008.
D1 Oils Plant Science Limited, D1's plant science business, will act as
the exclusive supplier of selected, high yielding jatropha seeds and
seedlings to the Joint Venture. The strategy for the Joint Venture sees
it planting Elite seed in greater quantities than D1's stand alone plan.
With the conclusion of this transaction D1 will comprise, in its
upstream business, its wholly owned plant science operations together
with the IP in plant science, in addition to 50 per cent. of a global
planting joint venture with BP. In its downstream operations, the
business will include, as it does now, its wholly owned interests in
refining and trading.
Commenting on the move Elliott Mannis, Chief Executive Officer of D1
Oils plc, said: "This is a transforming event for D1. BP's decision to
join us in this new venture is a significant endorsement of our strategy
to develop jatropha for the production of sustainable biodiesel. It
shows we have come a long way. BP's proven logistical, managerial and
financial support will enable a significant enhancement and acceleration
of the scope and pace of jatropha planting."
Philip New, Head of BP Biofuels, said: "As jatropha can be grown on land
of lesser agricultural value with lower irrigation requirements than
many plants, it is an excellent biodiesel feedstock. D1 Oils' progress
in identifying the most productive varieties of jatropha means that the
joint venture will have access to seeds which can substantially increase
jatropha oil production per hectare."
Jan -- this is very interesting. This is a publicly available article,
so it can be reposted.
Jerome Weingart and Associates
Consultancy Services for Sustainable Development
4001 9th St. N, Suite 1108
Arlington VA 22203 (USA)
866-888-5043 (global fax to my Internet account)
A member of the Global Village Energy Partnership
Check for earlier Pacific Biofuel posts: http://pacbiofuel.blogspot.com/