New £1bn refinery could meet renewable energy demand

7:31am Friday 22nd February 2008

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A NEW generation of synthetic fuels may be produced by a £1bn biofuels plant on Teesside.

The North-East Biofuels consortium is putting together a plan for the refinery, which would produce aviation and transport fuel from biomass such as trees, shrubs and grasses.

Currently, biodiesel and bioethanol are produced by either crushing oil seed crops or fermentation processes.

But Peter Harrison, a renewable energy consultant, said that, by 2020, it would be increasingly difficult for the current technology to produce enough biodiesel to meet UK demand.

The former ICI engineer said the ideal location would be Teesside: "It's particularly appropriate for the North-East because we have the land, we have the biomass, we have the chemical sector and the knowledge of how to make fuels from biomass.

"The technology is already there and, with some development, could be commercially viable.

"Current biofuels use part of some crops; this will use the whole crop. £1bn of capital would be required, but the project could create 6,000 jobs and could produce fuel for aviation and transport."

Volkswagen has said synthetic biofuels would further reduce car emissions and optimise energy efficiency.

Rolls-Royce also puts it at the top of its league table of environmentally-friendly fuels for aero engines.

The plant, which it is hoped would be operating by 2020, would also produce biofuel as a raw material which could supply petrochemical companies on Teesside.

The fuel can be produced either in a charcoal-type process or by heating it to 800C so it vapourises into a gas which condenses into liquid.

Many of the estimated 6,000 jobs which could be created would be in agriculture in the North-East as farmers in the region would be the primary suppliers to the plant.

Mr Harrison has put together the concept for North-East Biofuels and the North-East Process Industry Cluster (Nepic), along with other industry bodies.

Stan Higgins, chief executive of Nepic, said: "Many, many experiments and scale-up trials will be needed to prove this concept will work in the commercial world.

"This is about making sure our region is well-placed to take advantage of such a new industry that might lead to thousands of jobs."

A One NorthEast spokesman said: "It is very early days, but we very much look forward to seeing the results of the consortium's scoping work."

Mr Harrison unveiled the plans at the tenth annual farmers' lunch organised by the Darlington-based BiB Insurance Group and held at Headlam Hall, near Gainford.

Peter Atkinson, a director of BiB, said farmers want to use their land in the most profitable way, but want to know how their involvement in such a project would work.

He said: "We all have a duty to think about how we use energy resources, but there are still many questions to be answered."

John Fall, of Glasshouse Farm, Constable Burton, near Leyburn, said: "Land is a diminishing asset and any spare is already taken for house building.

"There is a lot to think about and farmers will need to see where the money is coming from."

Another questioned the logic of turning more arable land over to biomass crops when food production is slowing and the world's population is growing.

He said: "The price is going to have to be at a real premium for us to turn to it."