[PBN] D1 Oil director resigns amid heated debate on sustainability, yields

Source:

http://biofuelsdigest.com/blog2/2008/03/11/d1-oils-founder-resigns-after-share-debacle-says-media-analysts-unable-to-distinguish-sustainable-and-unsustainable-fuels/

D1 Oils founder resigns after share debacle; says media, analysts unable
to distinguish sustainable and unsustainable fuels

In England, the founder of jatropha pioneer D1 Oils announced his
resignation as a director after news of a new capital raise caused
shares of the company to plunge 40 percent. Karl Watkin said that the
media and analysts were unable to distinguish between sustainable fuels
and unsustainable fuels, and were lumping D1 unfairly with companies
with unsustainable practices.

Friends of the Earth told the UK's Guardian newspaper that D1 was
unrealistic about jatropha, and it was this that caused the share
meltdown. The advocacy group said the jatropha was poisonous, grown in
an unsustainable manner and were realizing smaller yields than initially
projected.

D1 Oils said that it would raise up to $60 million in an additional sale
of shares, to fund ongoing cash needs as it builds up its jatropha-based
biodiesel production capacity. The company said that competition from
subsidized US biodiesel had hit the company's trading margins, resulting
in the recent run-down in the share price as well as generating the need
for new cash. The company reported a loss of $20 million in its most
recent reporting period.

In February, the CEO of D1 Oil told the Reuters Global Agriculture and
Biofuel Summit that the company can produce jatropha biodiesel
profitably as long as the price of oil exceeds $65 per barrel. The
company is planting 50,000 hectares of jatropha, in a joint venture with
BP, in Africa, India and Southeast Asia, and the seedlings are expected
to be fully mature in 5-6 years. With a projected yield of 650 gallons
per hectare, the company will have developed more than 32 Mgy in
jatropha capacity by 2012.

D1 Oil is planting 50,000 hectares of jatropha, in a joint venture with
BP, in Africa, India and Southeast Asia. D1's CEO said that the company
can produce jatropha biodiesel profitably as long as the price of oil
exceeds $65 per barrel, and will have developed more than 32 Mgy in
jatropha capacity by 2012.
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