GREATER production levels have helped increase revenues at a biofuels operator – though bosses have forecast a year of consolidation amid lower prices.

CropEnergies says income strengthened during its last financial year, as manufacturing, helped by a flagship North-East plant, pushed higher.

However, officials expect ethanol prices to come in lower over the next 12 months, which they believe could restrict operating profit to around £60m, though they expect the value of protein and animal feed offshoots to remain relatively strong.

CropEnergies’ Ensus factory, based at Wilton, near Redcar, uses wheat to create bioethanol that is added to petrol, and the site helped push the business’ annual overall ethanol production volumes 12 per cent higher to 1,149,000 cubic metres.

In turn, revenues, according to preliminary results released today (Monday, March 26), were up ten per cent in the 12-month period to February 28, to £771m.

Operating profit came in at £63m, which was below the previous year’s record £86m, though bosses say they were pleased, with the figure in line with estimates.

They added net financial assets improved to £32m from a near £8m debt.

However, officials say they will approach the next 12 months with cautious optimism, citing lower prices as a factor, A spokesman said: “For the financial year starting March 1, prices for sustainably produced, climate friendly ethanol are expected to be below the previous year’s level.

“However, prices for protein food and animal feed products should remain on a high level.

"With revenues expected between £734m and £787m, the company thus anticipates earnings, before interest, tax, depreciation and amortisation, in a range of £61m and £96m, and an operating result between £26m and £61m for the financial year 2018/2019.”

Remaining protein and grain from the petrol process at the Ensus site, understood to employ in the region of 100 people, is used to make animal feed and carbon dioxide for the soft drink and food markets.

Earlier this year, Ensus’ chief executive Joachim Lutz reiterated a plea for EU bureaucrats to avoid a potentially “lost decade for climate protection” on biofuels, saying not enough is being done to focus on the transport sector in the EU’s renewable drive.

He added: “No specific target is envisaged for the transport sector; the aim is merely to achieve a gradual increase in the proportion of specific alternative fuels.

“However, the European Commission’s proposal would neither lower fossil fuel consumption or reduce the exploitation of fossil fuel sources.

"The 2020s could develop into a lost decade for climate protection.”