Wednesday, February 11, 2015

£250m Ensus plant at Wilton shuts down again amid reports of depressed market conditions


Wilton's bioethanol plant has again been shutdown amid reports of depressed market conditions.


The £250m Ensus facility is one of the largest in Europe and employs around 100 people.


Ensus’ parent company CropEnergies has refused to say why the plant has been taken offline - claiming it does not comment on “matters relating to production rates”.


But a recent financial update by the German-based firm said “sluggish” moves by policymakers to promote Europe green transport fuel - and a sharp fall in European bioethanol prices - was “taking its toll” on the industry.


The Teesside facility uses wheat to make bioethanol which is blended with transport fuel, dried animal feed and carbon dioxide for the drinks industry.


The shutdown is the latest to hit the plant, which has faced difficulties since it began operating in Febraury 2010.


Weeks after opening, a strong stench pouring from its giant stacks triggered complaints from residents nearby.


The odour problems cost millions to fix, and the plant reopened - but in May 2011 it was forced into further shutdown.


The closure was scheduled to only last four months but eventually went on for 15 months.


A further shutdown was carried out in April 2013, which lasted for six months and was due to “adverse market conditions.


CropEnergies claimed it “significantly increased” bioethanol production in the last three months of 2014, which it said was due to “better utilisation of the Wilton plant.”


But the report added: “Adverse market conditions are currently taking their toll on the European bioethanol industry.


“Bioethanol prices in Europe fell sharply compared with the previous year and are currently at a very low level.


“The fall in the oil price has also contributed to this.


“This price slump is due to the sluggish implementation of political objectives for reducing greenhouse gas emissions and lowering oil consumption in the European transport sector.


“This delay comes at a time when European capacities for the production of high-quality renewable alternatives to fossil fuel have been expanded in reliance upon political priorities.


“Owing to the low ethnanol prices, the earnings situation of European bioethanol producers has deteriorated significantly.”


Ensus was taken over by German-based CropEnergies in 2013.



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