Dailyhunt
UK backs idled Ensus ethanol plant with GBP 100 million package to secure CO₂ supply

UK backs idled Ensus ethanol plant with GBP 100 million package to secure CO₂ supply

CropEnergies AG, the Germany-based renewable ethanol producer, has welcomed a GBP 100 million (approximately EUR 115 million) funding commitment from the United Kingdom government to keep its British subsidiary's mothballed biorefinery on standby and ready to restart, Ethanol Producer Magazine reported on April 29.

The beneficiary of the package is Ensus UK Ltd, a CropEnergies subsidiary based at Wilton, Teesside, in north-east England. The plant, which suspended operations in September 2025 due to economic pressures, is the last remaining major industrial biorefinery in the United Kingdom. The UK Department for Business and Trade (DBT) agreed the support package, which is aimed at maintaining a secure domestic supply of biogenic carbon dioxide (CO₂), renewable ethanol for fuel blending, and protein-rich animal feed.

Ensus produces up to 400 million litres of bioethanol annually from more than one million tonnes of animal feed-grade wheat, and has a CO₂ capture capacity of 250,000 tonnes per year. The CO₂ produced at the facility is critical to multiple sectors, including food and beverages, healthcare, the nuclear industry, and various industrial applications. The UK’s dependence on CO₂ imports has grown since disruptions to European fertiliser production, which is a primary source of industrial CO₂, and concerns were further heightened by supply chain pressures stemming from the Middle East conflict.

The closure of Associated British Foods’ Vivergo plant in Hull in August 2025 left Ensus as the sole large-scale domestic CO₂ producer. The UK-US Economic Prosperity Deal, which removed a 19 per cent import tariff on American ethanol and permitted duty-free imports of up to 1.4 million cubic metres per year, had significantly undermined the economics of domestic bioethanol production and contributed to both closures.

With the funding in place, CropEnergies said Ensus aims to resume full operations as soon as possible. Grant Pearson, chairman of Ensus UK, said the government agreement was excellent news for employees and the wider supply chain, adding that the support strengthened both the Teesside manufacturing economy and the country’s resilience in biogenic CO₂ supply.

The UK government is also examining regulatory changes intended to improve the long-term viability of the domestic renewable ethanol sector. These include a nationwide rollout of E15 petrol blends and the possible approval of agricultural biomass as a feedstock for sustainable aviation fuels (SAF).

Dr Fritz Georg von Graevenitz, chief executive of CropEnergies, said the anticipated introduction of E15 and agricultural-biomass-based SAF represented not only a positive signal for climate protection and energy security, but also a model that could inform similar policy action within the European Union. CropEnergies described the agreement as a strong statement of industrial policy by the UK government.

Ensus has operated on Teesside since 2010 and has been part of CropEnergies, a subsidiary of the German Südzucker Group, since 2013. Alongside ethanol and CO₂, the plant produces up to 350,000 tonnes of high-protein animal feed annually.

Dailyhunt
Disclaimer: This content has not been generated, created or edited by Dailyhunt. Publisher: ChiniMandi English