Biorefiner Ensus UK has signed an agreement with the UK government for financial assistance to restart operations for three months at its wheat to bioethanol fermentation plant at Wilton on Teesside. But the subsidy is to support carbon dioxide (CO2) production – a co-product of the fermentation process – rather than the wheat or bioethanol markets. Ensus UK is part of the CropEnergies division within German multinational Sudzucker.
Following discussions since last September, Ensus says a package of financial support worth around £100 million has been agreed to keep the plant on stand-by and ready to start up as required. Government also holds out the prospect of longer-term regulatory change to improve the viability of the UK bioethanol industry, including possible higher road fuel inclusion rates.
The Wilton plant shut for scheduled maintenance in September 2025, shortly after Associated British Foods permanently shut its Vivergo Fuels biorefinery on Humberside. This decision came in the wake of the UK:US trade deal concession allowing a tariff free import quota of 1.4 billion litres of US bioethanol. The appearance of US bioethanol on the UK market delayed any Ensus restart.
Ensus has the capacity at Wilton to convert more than one million tonnes of feed wheat per annum into 400 million litres of bioethanol, plus 340,000 tonnes of DDGS feed co-product and 250,000 tonnes of CO2.
As Ensus is the UK’s last remaining major industrial manufacturer of biogenic (fermentation rather than fossil fuel-derived) CO2, the Department for Business and Trade (DBT) was keen to secure ongoing supplies for medical, nuclear coolant, abattoir and food and beverage sectors.
The DBT says its support will allow Ensus to operate on a temporary basis for at least three months, as curtailment of European fertiliser production in response to rising gas prices caused by the Iran conflict – plus unplanned maintenance at several European CO2 producing sites – disrupts CO2 imports into the UK.
The measure echoes the package agreed in September 2021 with CF Fertilisers and the then Conservative administration to maintain ammonia manufacture at Billingham on Teesside – again to underwrite carbon dioxide rather than fertiliser production. Billingham’s ammonia production closed permanently in 2023.
“This agreement of support from the UK government is excellent news for our employees and those in our extensive supply chain,” says Ensus UK chairman Grant Pearson. “It strengthens the broader Teesside manufacturing economy and the UK’s resilience in relation to biogenic CO2 supplies.
“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.
“I’d like to thank our loyal employees for their resilience and support during what has been a difficult period and pay particular tribute to MPs Anna Turley and Chris McDonald for their tremendous efforts in making this deal happen.”
Business Secretary Peter Kyle adds: “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 intervened last autumn 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.”