BP will retain an interest in D1’s planting activities through an extension and amendment of the existing option and relationship agreement (originally signed in 2007) between BP and D1 and the parties have agreed to maintain an ongoing dialogue in relation to the potential supply of crude Jatropha oil (CJO) to BP.
In return for an immediate cash payment to BP of £500,000 (US$816,000), D1 will take ownership of all of BP’s shares in D1-BP Fuel Crops, thereby assuming all of the assets & liabilities, as well as agreeing to take responsibility for any third-party claims against the BP group related to the business and operations of the Joint Venture.
D1 has also agreed to pay BP, by way of deferred consideration, £30 for every tonne of the first 20,000 tonnes of CJO, up to maximum of £600,000, produced by the D1 group and sold to third parties. To the extent not already paid, the £600,000 deferred consideration is payable by D1 at the latest by 31 December 2014.
As of 31 May 2009 D1-BP Fuel Crops had interests in approximately 220,000 hectares of Jatropha in Africa, India and South East Asia, which currently represent approximately 25% of the estimated total global planting of Jatropha curcas.
Completion of the acquisition of BP’s shares in the Joint Venture will also bring to an end the exclusive supply relationship between D1’s plant science business and the Joint Venture, thereby enabling D1 to market its plant science and planting technology and expertise to third-party operators of Jatropha projects.