UK biodiesel firm D1 Oils in possible takeover talks

06 July 2006 12:58  [Source: ICIS news]

LONDON (ICIS news)--Start-up UK biodiesel firm D1 Oils said on Thursday it was in talks with a number of companies over a possible takeover.

The biodiesel maker, which plans to produce the blendstock from crude jatropha oil, has attracted wide interest.

Shares in the firm rose in value by 7% on Tuesday and 10% on Wednesday to reach 304 pence following speculation that an oil major was interested in the firm.

D1's board said it had been in preliminary discussions with a number of parties and said those talks may or may not lead to an acquisition of the company.

D1 Oils operates four biodiesel units at a refinery in Middlesbrough, UK, with a total capacity of 32,000 tonnes/year. These can refine a variety of vegetable oils including rapeseed, soya, palm olein and jatropha.

By the year end the company exempts to increase biodiesel production capacity to 72,000 tonnes/year a move that will require vegetable oil shipments of 6000 tonnes a month.

In advance of the availability of crude jatropha oil,  D1 Oil’s primary feedstock, the plants are producing biodiesel from food grade vegetable oils.  The hedge plant jatropha is found in the Caribbean, Africa, and North America.

By: Mark Watts
+44 20 8652 3214

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