UK DECC and One North East provide £7.3 million funding to INEOS Bio to develop state of the art bioethanol plant


The UK department of Energy and Climate Change (DECC) and One North East, said they had awarded INEOS Bio, a biofuels technology developer, about £7.3 million in funding for the development of an advanced, state-of-the-art, waste-to-bioethanol plant to be located in the Tees Valley. INEOS Bios said the 3MW plant that is scheduled for construction at Seal Sands near Middlesbrough, is expected to be Europe’s first state-of-the-art bioethanol from waste plant that will utilize the company’s BioEnergy Process Technology.

 

The company confirmed that it had gotten the funding last week and would hence put the sum into the £52 million construction costs for the plant that will be finished in 2012. DECC offered about £4.5 million for the plant, whereas One North East will give £2.8 million, out of which £1.8 million has already been secured from the Tees Valley Industrial Programme (TVIP). The TVIP, a £60 investment fund to be used in the coming two years, was offered by the One North East and the Department for Business, Innovation and Skills (BIS), particularly in support of the region’s industrial transition to low carbon and advanced manufacturing.

 

INEOS Bio’s commercial scale bioethanol plant is aimed at converting more than 100,000 tonnes yearly of biodegradable household and commercial waste to 24,000 tonnes yearly, about 30 million litres of carbon neutral road transport fuel and generate over 3MW of renewable electricity for export. The company said it hopes the investment would enable it provide the biofuel needs of almost 250,000 auto mobiles per annum running on E10 and the electricity requirements of 6000 households.

 

INEOS Bio Chief Executive, Peter Williams, said the company’s technology enables it recycle waste gathered from homes and offices such as the National Non Food Crop Centre that enabled the company advance its commercialization plans in the North East of England.

 

With the new investment, the company hopes to create 40 new permanent jobs and about 350 jobs in the construction phase, and it’s planned to be expanded into a bigger integrated biorefinery, combining state-of-the-art bioenergy production with advanced waste treatment by year 2015. The biorefinery would help to meet the UK's renewable energy targets for transport fuel, power and heat set for 2020 through the Renewable Energy Directive, claims INEOS. This investment marks another major investment in the North East of England for the Tees Valley Industrial Programme. This project places the region and the UK as leading low carbon economy and will offer a solution for waste and vital clean energy resource for years to come.



 June 20, 2010.