Vivergo Fuels Readies Europe's Largest Biofuel Plant

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Researched by Industrial Info Resources (Sugar Land, Texas)--Vivergo Fuels Limited (Kingston upon Hull, England), which is 45% owned by BP Chemicals Limited (London, England), a subsidiary of BP plc (NYSE:BP) (London), is wrapping up start-up and commissioning activities on what will be Europe's largest biofuels plant. The facility will be located at BP's Salt End petrochemical site near Hull, in eastern England.

Initial production has begun and will ramp-up to the plant's nameplate capacity of 420 million gallons per year of bioethanol by the end of March. The estimated $200 million plant will process some 1.1 million tons of wheat feedstock into the renewable fuel.

United Kingdom (U.K.) wheat imports may be 7% larger than forecast in November of last year after excess rain slashed crop yields, while demand for livestock feed and ethanol production remained robust.

Demand for wheat has climbed in the U.K., as production at Vivergo Fuels, along with the resumption of production at the Ensus plant in Wilton, England, in the second half of 2012, has put a strain on wheat supplies. Also contributing to demand were soggy conditions in the region that reduced grass and hay supplies, forcing livestock farmers to feed cattle more grain than normal.

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