D1 Oils closes the London Markets
29 October 2004
D1 Oils will produce biodiesel and supply crude vegetable oil used in the production of biodiesel. Biodiesel is a renewable fuel which can be used as an alternative to conventional diesel and petrol. It is created by blending vegetable-based oils with petroleum diesel. Biodiesel is a "green fuel" which can reduce carbon emissions by up to 80 per cent compared with conventional fossil fuels.
D1 Oils’ objective is to become a global sustainable, low cost producer of biodiesel and supplier of crude vegetable oil and to achieve and maintain low production costs and consistent, high volume, quality output. The Group’s strategy is to control and manage its operations on a regional basis by securing plantation rights and establishing refinery operations using its own refinery technology. The Company’s approach is to exploit the growing global demand for biodiesel utilising an alternative, high yielding, vegetable oil source. The Jatropha tree has been selected as the Group’s primary energy crop due to the main benefits of its high productivity, durability and longevity.
To date, the Group has established operations and strategic and commercial relationships in four regions: Europe (Teesside and London, UK), Africa (Johannesburg, South Africa), Asia Pacific (Manila, The Philippines) and India (New Delhi).
At the placing price of 160p, the company has an estimated market capitalisation of £34.5 million and has raised £13million of capital. Funds raised from the float will be used to fund the planting of Jatropha, fund capital expenditure related to the manufacture and installation of its modular refineries and provide working capital.
Bell Lawrie White is adviser and broker for the offer. Climate Change Capital provided specialist advice.
