News

March 17, 2008

Karl Watkin The First Out The Door As US Subsidies Begin To Bite At D1 Oils And Layoffs Loom

By Rue Swabey

There is more trouble brewing in the biofuels industry. Aim-traded D1 Oils, which plants and refines jatropha for use as a biodiesel feedstock, has just announced a downsizing of its refinery business. It’s also likely to seek up to £30 million in fresh capital as its cash position is likely to fall to £1 million by year-end.

On 7th March D1 Oils announced that it has started a consultation process with employees at its downstream refining plants in Middlesborough and Bromborough in order to "manage the business proactively in a difficult market". As the primary reason for the sudden interest in managing things “proactively”, the company cited unfair competition from heavily subsidised US biodiesel imports. Around 35 jobs are likely to be affected. A number of options are being considered but if nothing comes to...