[Biodiesel News] D1 Oils to buy major site for biodiesel production, distribution ...

D1 Oils to buy major site for biodiesel production, distribution ...
Life Style Extra - UK
LONDON (AFX) - D1 Oils Plc said it is buying a major site at Bromborough in North West England for 3 mln stg for conversion to biodiesel production, storage ...

D1 Oils to buy major site for biodiesel production, distribution on Merseyside

LONDON (AFX) - D1 Oils Plc said it is buying a major site at Bromborough in North West England for 3 mln stg for conversion to biodiesel production, storage and distribution.

D1 said it expects initial capacity of 100,000 tonnes from conversion of the 47-acre site to biodiesel production in 2007, at an estimated capital cost that would be lower than full construction. The group plans to increase refinery capacity by a further 100,000 tonnes in 2008.

Refining operations are anticipated to commence in 2007

D1 expects total UK biodiesel production capacity to reach 420,000 tonnes by end-2008.

D1's intended strategy is to invest up to 8 mln stg in the site during 2007 to convert the site to biodiesel production and provide working capital. D1 is currently reviewing a number of potential funding options for this planned investment.

Production from the site should deliver a contribution to both group revenues and earnings in 2007, D1 added.

It is intended that the first phase of operations at the new site will create around 45 new jobs.

Chief executive Elliott Mannis said: 'Refining is a major part of D1's strategy alongside agronomy and trading, and this transaction has the potential to make us the UK's largest biodiesel refiner within two years.'

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Posted by Vince to Biodiesel News at 9/14/2006 05:24:00 AM