UK Government Invests £100 Million to Revive Teesside Biorefinery

The Ensus UK biorefinery in Wilton, Teesside, which was the largest in Europe when it opened in 2010, has been forced to close due to the repercussions of Donald Trump’s trade policies. The facility, which converts millions of tonnes of wheat into bioethanol and produces high-protein animal feed and biogenic carbon dioxide, was mothballed last September. This closure was a direct consequence of a trade deal struck by Sir Keir Starmer’s Government with the United States, which reduced tariffs on US bioethanol imports from 19 percent to zero. The influx of cheaper US bioethanol has rendered the Ensus plant unable to compete, leading to its shutdown.

iNews

In response to the closure and the subsequent shortage of carbon dioxide supply in the UK, Business Secretary Peter Kyle announced a £100 million investment to reopen the Ensus plant. The facility employs approximately 100 people and supports an additional 3,000 jobs in the supply chain. Terry Waldron, a spokesperson for Ensus, noted that the UK is currently reliant on importing all of its CO2, highlighting the urgency of the situation.

iNews

Local reactions indicate a strong understanding of the plant's significance as critical infrastructure. Waldron expressed optimism that the plant could be operational again within "a few weeks." He also mentioned the potential for the UK to expand its ethanol offerings at petrol stations, moving towards blends containing 15% or even 20% ethanol, which could enhance environmental sustainability.

iNews

Grant Pearson, chairman of Ensus UK, emphasized that the investment would support not only the agricultural and fuel markets but also the development of greener chemicals and sustainable aviation fuels. Anna Turley, the Labour MP for Redcar, underscored the importance of the plant for local families and the economy, while Ben Houchen, the Conservative mayor for Tees Valley, criticized the government for not acting sooner to address the challenges faced by the chemicals sector.

iNews

Despite the positive developments, there is criticism regarding the timing and adequacy of government support. Houchen pointed out that the government should have recognized the urgency of the situation earlier, as the chemicals sector has been struggling due to the impact of cheap imports resulting from the US trade deal. He warned that the situation could lead to further job losses and closures in critical industries.

iNews

• “At the moment, Britain is having to import all of its CO2 and the Government has recognised that,” — Terry Waldron, Spokesperson for Ensus

iNews

• “ The Ensus UK plant will be reopened after Labour agreed to invest £100m Anna Turley, the MP for Redcar, said: “This isn’t just about our world-renowned site – this is about families, livelihoods, and the future of our local economy.” — Anna Turley, MP for Redcar

iNews

• “It shouldn’t take shortages facing us down the barrel of a gun for the Government to realise the urgency of the situation in the chemicals sector here in Teesside,” — Ben Houchen, Mayor of Tees Valley

iNews

The reopening of the Ensus plant represents a critical step in addressing both local economic needs and broader environmental goals, although the path forward remains fraught with challenges stemming from international trade dynamics.

iNews