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INEOS ENTERPRISES 10 YEAR AGR
INEOS ENTERPRISES 10 YEAR AGR.
About this update from Tooru Plc
[{"type":"text","content":"\n RNS Number : 0942K Viridas PLC 15 December 2008 \n \nVIRIDAS AND INEOS ENTERPRISES SIGN TEN YEAR JATROPHA AGREEMENT\nViridas is pleased to announce that the strategic partnership with INEOS Enterprises announced on 17 April 2008 has led to the signing of a Ten Year Jatropha Oil Supply & Development Agreement [the Agreement]. The Agreement between Viridas Enterprises Brazil Limited [Viridas], a wholly-owned subsidiary of Viridas plc, and INEOS Enterprises covers the supply of jatropha oil to be produced by Viridas from its plantations in Brazil. INEOS Enterprises will use the jatropha oil as a raw material in its biodiesel production processes.\nUnder the Agreement INEOS Enterprises will purchase up to 60,000 tonnes per annum of jatropha oil, once commercial levels of production have been reached. The price is based on an agreed formula and with Viridas having the right to sell the jatropha oil in the market in certain circumstances, once obligations to INEOS Enterprises have been met. Under the agreement, INEOS Enterprises may exercise a break clause 2 years after commencement of commercial levels of production.\nThe Agreement with INEOS Enterprises underpins Viridas's plans for the implementation of a fully mechanised, industry scale, crude jatropha oil production business in Brazil, as outlined in the Chairman's Statement in June.\nViridas is now reviewing options to finance the initial stage of its plan to purchase, plant out and manage 30,000 hectares of jatropha crop in Brazil, with a view to commercial levels of production of jatropha oil coming on stream in 2013.\nStanley Wootliff, Chairman of Viridas plc, commented:-\n'We are delighted with the outcome of the partnership entered into with INEOS in April, which has proved invaluable to us in gaining a thorough understanding of the requirements of potential customers in the European market for jatropha oil. Signature of the Agreement now will enable us to develop our strategy in the knowledge that we have a credible development partner and have secured the sale of our anticipated output of jatropha oil during the critical initial phases of production.\nDr Harry Deans, CEO of INEOS Enterprises, comments:-\n'Moving from development phase to supply agreement with Viridas is a further step in our long term strategy to secure sustainable, low carbon feeds...