Ensus calls for help to let trains take the strain
THE company behind Europe’s largest wheat biorefinery on Teesside is putting green plans to shift supplies by rail in motion.
But Ensus has called for more action and less talk from Government towards unlocking funds for the low-carbon industries, following a failed attempt to secure rail transport subsidies.
Once the Ensus bioethanol plant is fully operational, Glencore Grain UK must supply the plant with 1.2m tonnes of wheat a year, most of it transported by road truck.
The supplier wants to send more grain by rail, eventually improving rail links to Wilton with an extra line direct to Ensus.
Keith Davies, managing director of Glencore, said: "We are trying to transport grain in a more environmentally friendly manner, and one of the options is a modal shift to rail.
"We are all coming under pressure to reduce our carbon footprint. Rail is something like a ninth of the energy needed to transport goods by road. Most of the wheat for Ensus will be procured as close to the plant as possible, but we’ll also be sourcing from the Midlands, Lincolnshire and East Anglia. Those distances could increase as other UK bioethanol plants come onstream."
The company and its rail partners made an unsuccessful application for a Mode Shift Revenue Support (MSRS) grant from the Government to transport up to 200,000 tonnes a year by rail.
"Rail transport makes sense," Mr Davies added, "it would maintain the viability of the Ensus plant, protecting jobs for the Tees Valley. If there was an improved rail link to the Wilton site, it could be used by other companies.
"We’re looking to reapply at the next possible opportunity."
Chief executive of Ensus, Alwyn Hughes, said: "Making rail as accessible as road is part of making the North-east more competitive. It creates a better infrastructure for everybody. Unfortunately, we were turned down for a grant. It’s frustrating."
Mr Hughes added the company wanted to expand the plant by half again and is also looking to open a second operation in the UK, but had also been tempted by more generous offers of Government support in Northern Europe.
"We are very keen to secure a share of the £60 million the Government has promised Teesside, but we’ve seen nothing that’s tangible yet," he said. "We are also mindful of the significant support given to investments in Northern Europe. Whilst we have the capability to invest on Teesside, it will depend on where the best opportunities lie and we will have to make choices in the near future."
A spokesman for the Department for Transport said bids for the Mode Shift Revenue Support scheme were assessed on their ability to deliver and environmental benefits.
