UK-based co plans refinery in Chennai

NEW DELHI: The UK-based green fuel company D1 Oil is planning to set up a refinery in Chennai for processing crude bio-diesel. The company, producing bio-diesel from renewable energy crops, has decided to cultivate jatropha in 20,000 hectares of land in the north-eastern region.

“India is going to be a key location for the production and consumption of bio-diesel from jatropha and comprises the largest component of our current planting programme,” D1 CEO Elliott Mannis said.

The cost of the refinery will be dependent on the site. If the refinery is established on an existing petrochemical site with tanks and power and other facilities, the cost will be lower compared to a green-field project, he said.

The company plans to commence commercial sale of bio-diesel by ’07 end, when the first lot of fruit is ready. It would be done through the proposed Chennai refinery. The company may also invest in more than one refinery at a later stage.

Before the refinery is set up, D1 may start procuring oil seeds and establish a rapport with farmers.