Shares in D1 Oils (LON:DOO) shot up over 40 percent today as it revealed an exciting crude Jatropha oil (CJO) trial with German engineering firm Siemens (ETR:SIE).
In the trial Siemens will use D1’s CJO biodiesel to power turbines on a high speed ferry.
D1 highlighted that this is one of three potentially significant trials being conducted by three separate multi-national businesses. It has already supplied more than 70 tonnes of CJO for use in the trials.
The other trials involve a major ‘fast moving consumer goods’ (FMCG) business and a leading specialty chemicals business - the former will use CJO to generate power and the latter will convert CJO into other ‘bio-based’ products.
Crucially D1 said that the trials may lead to off-take deals for a large proportion of next season’s harvest and beyond, if they are successful.
"Demand for the CJO, both in India and globally, continues to significantly exceed supply,” said chief executive Martin Jarvis.
"We welcome the interest of these large, European multinationals looking to replace their existing oil requirements with CJO due to its sustainability credentials, attractive pricing and carbon reduction benefits versus mineral fuel oils."
By 14:00 on AIM, D1 shares were up nearly one penny each, about 42 percent, and they were changing hands at 3.06 pence a share.