BP announces biofuels deal
Published on : 29/06/2007
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BP has signed its second biofuels deal in the space of seven days - sealing a joint venture with D1 Oils, a UK-based alternative fuels company.
BT will invest £32 million of working capital into D1 Oils on the 50:50 venture - with D1 providing 1.9 per cent of its assets in return. BP has the option buy a further 16 per cent if it invests £30 million more.
The plan is to accelerate planting of jatropha, which grows in tropical and sub-tropical areas, on wasteland marginal sites. D1 will then provide BP with exclusive use of the jatropha seeds and seedlings and will receive a premium price in return.
"This joint venture is a further milestone in our strategy to develop real avenues to contribute to global energy supplies in ways that are sustainable and progressive,” Iain Conn, chief executive officer of BP’s refining and marketing business, said.
Elliott Mannis, chief executive officer of D1 Oils, commented: "This is a transforming event for D1. BP's decision to join us in this new venture is a significant endorsement of our strategy to develop jatropha as a global raw material for the production of sustainable biodiesel."
