Biofuels pump up price of wheat

Wheat prices rose on the news that UK grain was once again likely to be used in bioethanol production after the UK government’s announced that it had backed moves to boost biofuel levels at petrol pumps.

Westminster yesterday said that motorists across the UK would now see a greener fuel available on the forecourts with the introduction of E10 at petrol stations in September 2021.

“Following a consultation with drivers and industry, the introduction of E10 fuel, which is a mixture of petrol and ethanol made from materials including low-grade grains, sugars and waste wood, will boost the government’s ambitions to reach net zero by 2050,” said Grant Shapps, the Secretary of State for Transport.

The bio-ethanol plant operated by Vivergo Fuels at Hull in the north of England which had been mothballed for almost three years will reopen on the back of what the owners termed the “certainty of demand” created by the mandating of E10 petrol which must contain 10 per cent renewable fuel.

“Now that E10 has been mandated and the environment is more favourable, the plant will help cut transport CO2 emissions by up to 750,000 tonnes per year, the equivalent of taking 350,000 cars off the road,” said Dr Mark Carr, group chief executive of AB Sugar which owns the plant’

He added that the move would re-boot the UK’s £1 billion British bioethanol industry:

“With the Government’s announcement to introduce E10 to UK vehicles and improved market conditions, we are re-opening the plant and will start manufacturing bioethanol in early 2022.