Ensus aims build a number of large-scale plants in Europe which will produce the renewable fuel from wheat, the first will be in Teesside and construction of the plant is due to take place in spring next year.
The company, chaired by Sir Rob Margetts, has long-term contracts in place with Shell Trading to purchase all of the bioethanol produced at the plant and with Glencore for wheat supply.
As the European Union has set a target of 5.75% for the amount transport fuels to come from biofuels by 2010, Ensus feels it is well positioned to capitalise upon this.
Other announcements by the UK government aimed at cutting emissions may also play well for the company, particularly as currently Britain doesn’t produce any bioethanol.
Biofuels in the UK currently receive a 20 pence per fuel duty reduction compared with regular petrol and diesel.
Sir Rob said: “I am pleased to be involved with Ensus which is planning to be a front runner in the rapidly developing European biofuels sector.
“With the European Union’s policy targeting 5.75% of transport fuels to come from biofuels by 2010, Ensus is well-positioned in reaching this goal.”
Ensus is committed to underwrite over £150m in debt financing, subject to raising the equity required from institutional investors during the company’s investor showcase.
© Crimson Business Ltd. 2006
