Renewable fuel plant to bring many jobs

Green fuels group Vireol, which is launching the venture today, will use wheat to produce bioethanol at a site in Grimsby. It has won funding for the 200m plant, which chief executive David Knibbs said would create jobs for up to 750 building workers.

Construction is due to start later this year and will take two-and-a-half years.

Mr Knibbs said: "The environmental benefit of this project will equate to removing over 60,000 cars from the road every year. In addition, the fuels we produce will help to reduce the UK's reliance on imported oil.

"Our plant will be the latest of only three in this country. Bioethanol produced in the UK has all the credentials to be a real success story and an industry in which we can lead the way in Europe."

The plant's three main products will be bioethanol, high- protein animal feed and liquified carbon dioxide to be used in the food and drink industry.

Demand for bioethanol is rising because of a European regulation which says that fossil fuels suppliers must blend a small proportion of biofuel into their product. The legal limit reaches five per cent by 2013.

Mr Knibbs said Vireol, which is based in Knaresborough and promotes measures to cut greenhouse gases, had already won orders for the ethanol, animal feed and carbon dioxide to cover at least its first 10 years of production.

The Vireol plant is being financed by Future Capital Partners, an investment house, as well as a group of banks and money raised through advisors.