Mothballed Teeside carbon dioxide plant restarting operations
Production was halted last September amid a crisis in the UK bioethanol industry in the wake of a trade deal with the United States
Last updated 22 hours ago
The UK’s only large-scale carbon dioxide plant is being prepared for a restart of its operations after the Government agreed a £100 million financial support package amid fears of shortages linked to the Iran war.
Production at Ensus UK’s plant on Teesside, which made CO2 as a by-product of bioethanol manufacturing, was halted last September amid a crisis in the UK bioethanol industry in the wake of a trade deal with the United States.
Ensus UK has now signed an agreement with the Government to bring the mothballed plant back into operation for a three-month period.
The firm said the £100 million package has been agreed for the plant to remain on standby and ready to start up as required.
The facility at the Wilton International industrial site is the UK’s last remaining major industrial manufacturer of biogenic carbon dioxide, which is crucial in a wide range of sectors, including in the drinks and nuclear industries.
The Department for Business and Trade (DBT) said the Government has taken the decision to back the restart of activity at Ensus to “safeguard critical national infrastructure” given the potential impact of a shortage on essential UK sectors, including healthcare, nuclear and food and drink production.
The DBT said the UK risks CO2 shortages due to factors including disruptions to European fertiliser production and rising gas prices driven by the Iran conflict.
It said the plant will operate for a three-month period, which the department said will bolster domestic CO2 production significantly, providing more resilience to essential sectors.
The plant had been due to close permanently in the autumn but the Government intervened to keep it on standby, the DBT said.
Ensus UK chairman Grant Pearson said: “This agreement of support from the UK Government is excellent news for our employees and those in our extensive supply chain.
“It strengthens the broader Teesside manufacturing economy and the UK’s resilience in relation to biogenic CO2 supplies.
“These are vital to food and drinks companies, as well as being important to hospitals, abattoirs and the nuclear industry.”
Mr Pearson said: “We hope to have the plant back in full operation soon.
“This deal will also be very supportive to the UK agricultural and fuel markets, including for the future expansion which is required in more sustainable aviation and maritime fuels and in the development of greener chemicals.”
Business Secretary Peter Kyle said: “As a government of action we will always do what’s needed to ensure resilience and protect British businesses from the worst impacts of global uncertainty.
“That’s why we have been in discussions with Ensus since September to keep this critical plant on standby for situations like this.
“By restarting this plant we’ve acted swiftly to boost the resilience of our supply chains and protect critical UK sectors like food production, water and healthcare, as well as the jobs and communities that depend on these industries.”
The Teesside plant employs around 100 people and the firm said it supports a further 3,000 in the UK supply chain.
The facility was mothballed last year following the end of a 19% tariff on American bioethanol imports as part of the UK-US trade deal.
This also hit the UK’s other main bioethanol plant in Hull, run by Vivergo Fuels.