D1 Oils, BP join hands to enhance bio-diesel production

New Delhi, June 29 (UNI) UK-based global biodiesel producer D1 Oils plc today entered into a global Joint Venture (JV) with British Petroleum (BP) for increasing cultivation of Jatropha to 100,000 hectares across the country by the year end.

Presently, D1 Oils has 45,000 hectares under cultivation in partnership with farmers across Tamil Nadu, Kerala, Madhya Pradesh and Chattisgarh along with the North-eastern states.

The expansion will concentrate on the North-eastern states as well as Tamil Nadu, Maharastra and Madhya Pradesh.

Under the scheme of agreement between D1 Oils and BP, it will be a 50:50 JV to undertake global planting of jatropha, with a target to plant one million hectares over four years.

The global funding of the programme envisages a working capital of 31.75 million pounds by BP through equity in the JV. The total JV global funding requirement is approximately 80 million pounds over five years.

Much of the investment in India will be made on the plantation and the supply chain.

''It is difficult to put a number on the amount of investment that we would make in India, but it will be a sizeable amount given the nature of the JV with BP,'' said D1 Oils Chief Executive Officer Samiran Das.

The revenue expected by this investment will depend on a number of issues like policy and support price from the government and the global scenario, said Mr Das.

The bio-diesel produced will be sold within the country and exported. However, Mr Das said there is an insignificant market in the country presently but will definitely increase since jatropha oil provides fuel security and the plant does not fight with the food crop.

Production of jatropha oil for refining into biodiesel is expected to begin in 2008.

D1 Oils Plant Science Ltd, D1's plant science business, will act as the exclusive supplier of selected, high yielding jatropha seeds and seedlings to the JV.

The strategy for the JV is planting 'Elite' seed in greater quantities than D1's stand alone plan.

Jatropha is an oilseed tree that grows in tropical and sub-tropical regions and produces high yields of inedible vegetable oil that can be used to produce high-quality biodiesel. The plant grows on a wide range of land types, including non-arable, marginal and waste land.

UNI