The operators of a bioethanol plant in Hull which employs 150 workers says it will 'closely monitor the market' before considering reopening the plant. Vivergo, which is owned by Associated British Foods, said it had stopped operating the plant because of uncertainty around biofuels policy and future demand for the fuel.
Vivergo says that it will retain its workforce at the £350m plant for the time being. The main feedstock for the plant is UK grown wheat.
Since 2012 road fuel in the UK has been blended with around 4.75 per cent biofuel. The DfT's Transport Energy Task Force, which was convened by the LowCVP in 2015, recommended lifting the blend level and introducing E10 — which would mix petrol with 10 per cent bioethanol.
Earlier this year, the Government announced that it supports an increase to 9.75 per cent biofuels by 2020. (
LowCVP story link)
The Financial Times reports that the UK’s bioethanol sector comprises two big plants — Vivergo in Hull with 420m litres a year capacity and the 400m-litre capacity Ensus on Teesside. Both also produce animal feed and carbon dioxide for the food and drink industry. ABF also owns an 80m-litre plant in East Anglia.
Ethanol prices have dropped because of oversupply across the EU due to high sugar prices and the slower than expected introduction of the fuels. Between January and October this year they fell from €591 per cubic metre to €461.
Earlier this year, In support of the Government’s decision to increase the Renewable Transport Fuel Obligation, the LowCVP today published a report entitled ‘Successfully Deploying E10 Petrol’. The LowCVP is re-convening its group to continue the work to encourage lower carbon renewable and sustainable fuels (including E10) into the UK market as soon as possible.
The expert group convened under the auspices of the LowCVP concluded that the introduction of petrol with a 10% bioethanol content (E10) would be one of the most cost-effective means of rapidly reducing carbon emissions from road transport currently available to the UK.
The expert group said that it would also make an important contribution to the UK’s efforts to reduce CO2 from road transport by displacing 10% of fossil petrol with renewable bioethanol in transport by 2020. However, its introduction needs to be thoroughly and carefully planned to ensure effective market transition.
For more details see this page.