Uncertain times for biofuel company

Jun 5 2009 by Chris Knox, The Journal

THE future for renewable energy company D1 Oils looks uncertain after its joint venture with BP to plant biofuel crop jatropha around the world failed to attract a third investor.

The AIM-listed firm, which last year announced the closure of its refineries on Teesside and Merseyside with the loss of 90 jobs, has been concentrating on the research and planting of Jatropha curcas to produce biodiesel.

The company, founded by North East entrepreneur Karl Watkin, has now ceased refinery operations to concentrate on the project, which has planted 544,000 acres in areas including India and South Asia.

But the firm has now said funding for the D1-BP fuel crops is “uncertain”, with BP confirming that the planting venture has failed to attract a third investor to take it worldwide.

The statement said: “The outcome of this fundraising process is uncertain, and the Board of D1 Oils anticipates that the joint venture will therefore be written off in D1’s preliminary results for the year ended December 31, 2008.”

Both companies are talking about the future of their partnership, which could result in restructuring of the joint venture, with the possibility of BP taking a share in D1’s commercial development arm D1 Oils Plant Science Ltd, which owns the intellectual property for its jatropha activities, or increasing its share in D1-BP Fuel Crops beyond 50% or pulling out altogether.