Refinery jobs under threat
TROUBLED D1 Oils has revealed its Middlesbrough refinery could close as early as this summer, plunging the future of 40 employees into doubt.
The renewable energy company, which today revealed losses of £46.1m in the year to December 31, 2007, is in discussions with staff and a decision is expected by June or July.
Chief executive Elliott Mannis, said the company couldn’t afford to wait for new legislative changes that would challenge huge US subsidies, which are forcing UK companies to move their biofuel producing operations overseas.
He said: “A ‘wait and see’ strategy’ won’t have any benefit for us.
“US subsidies are driving everybody else out of business and we have to act now.”
He admitted there was now a “question mark” over the future of the company’s Middlesbrough operation.
He added: “Refining food-grade vegetable oils into biodiesel in Europe has developed into a highly competitive market in which only very large scale operations are viable.
“We therefore intend to withdraw from this business and propose to close our UK refining sites.”
D1 intends to use its technology and experience in jatropha to focus the business on the upstream breeding, planting and managing of sustainable commercial biofuel crops.
It will instead concentrate on production of its alternative feedstock jatropha, which needs to be grown in hot tropical conditions.
Last month the company said it was considering the future of staff at the Teesside plant.
At the same time D1 founder Karl Watkin stepped down as a non-executive director, warning that the company would process biofuel “where it is going to make the most money and if that’s not in the UK, so be it”.
In recent months, UK biofuel producers have stepped up pressure on the European Commission and British government to tackle heavily discounted US subsidies and encourage more home-grown biofuel production.
But it may already be too late to save some UK-based operations in the struggling British sector.
But today D1 announced a successful share placing had raised £14.9m, net of expenses and subject to shareholder approval, which will be used to fund further development of alternative sustainable feedstocks for the production of biodiesel.
