Vivergo Fuels Receives First Wheat Deliveries for Hull Biofuels 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), has received the first deliveries of wheat feedstock 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.

Frontier Agriculture, a grain co-operative company based in North Kesteven in Lincolnshire, and the largest grain-marketing company in the U.K., is expected to deliver more than 1,200 tons of wheat by the end of this week and more than 1.1 million tons total by the end of the year.

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 the month. The estimated $200 million plant will process wheat feedstock into the renewable fuel.

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. Among the factors contributing to the growth is that livestock farmers were forced to feed cattle more grain than normal after soggy conditions in the region reduced grass and hay supplies.

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