Four more investors fuel energy ambition

Mar 10 2008 by Peter McCusker, The Journal

TALKS are taking place with four biofuels companies keen to invest millions of pounds in new manufacturing plants in the North East, as the region looks set to strengthen its position as the main player not only in the UK but Europe.

Teesside already has nine biofuel complexes, with plans for a 10th revealed last week and now it has emerged there are another four companies circling the region looking to plug into the developing sector.

The developments look likely to secure the future of the growing industry in the North-East, with half the country’s production expected to be in the region by 2015, employing more than 5,000 people.

The rapid expansion is being driven by Government and EU law to force fuel providers to meet strict carbon emission targets within two years.

With talks still continuing, the main players in the North East biofuels sector are wary about expanding on the nature of the new investments. But two senior figures in the sector confirmed the interest. Dr Stan Higgins, chief executive of the North East Process Industries Cluster, said: “There are at least four other companies, on top of the existing ones, looking to develop biofuel facilities.

“Within a few years I believe we will have some major biofuel manufacturers providing 50% of the UK’s needs, employing around 5,000 people at biofuel plants and in the supply chain.”

John Seymour, rural affairs spokesman for North East Biofuels – an umbrella organisation for the biofuel companies in the region – said there were a number of parties looking to Teesside and Tyneside for possible development sites.

“We are ahead of the game here in the North-East. This really is the hub for the UK’s biofuel industry.

“We have spoken to four companies recently who are serious players and want to establish biofuel facilities in the region. These companies are looking at both Teesside and Tyneside,” he said.

One NorthEast’s energy and environment manager Ray Thompson said: “North East England really does have the potential to become a major European hub for biofuels.

“We’ve got the infrastructure, process expertise and strong rural capacity to offer the entire process from seed to tank and, together with its partners, One NorthEast is working to make sure the region seizes the opportunities in this significant growth area.

“This includes developing capacity with manufacturers, building supply chains, improving customer awareness of biodiesel, and making sure the region’s capabilities are recognised by policy makers and oil majors internationally. Clearly, continuing to attract new investment is absolutely key.

“The national direction of travel on biofuels, including the Renewable Transport Fuels Obligation, is undoubtedly very positive for all this work and for businesses in the region – no matter where they are in the biofuels supply chain.”