A FARMERS' union has voiced concerns about plans to pause production at a bioethanol plant later this year.
Earlier this month, it was revealed that CropEnergies is temporarily closing the Ensus bioethanol plant, in Wilton, near Redcar, at the end of November.
No date has been given for when work may resume, and The Northern Echo understands none of the 80 workers who are based at the plant or the firm's office in Yarm, near Stockton, are facing redundancy at this stage, and they will also continue to be paid.
The National Farmers' Union (NFU) has said the announcement is "yet another blow" for the UK grain industry and said the closure could have "knock-on implications for animal feed supplies".
The plant currently supports around 2,000 jobs in the supply chain across Northern England.
Bosses claimed the decision to pause production had been made due to a fall in ethanol prices.
Tom Bradshaw, NFU combinable crops board chairman, said: “This announcement is yet another blow for the UK grain industry, which has already been hit by the Vivergo closure.
“The current market conditions are extremely difficult and this announcement serves to highlight the need for policy that will support the renewable energy sector.
“The closure could also have knock-on implications for animal feed supplies and, at a time when livestock farmers are already suffering with feed shortages, could mean an increased reliance on imported animal feed protein.
“Biofuels have a big role to play in delivering a green Brexit and need to be more widely embraced.
"We continue to call on the government to fast-track the introduction of E10 petrol to the UK fuel mix.”
A spokesperson for CropEnergies said: "CropEnergies has adjusted its outlook for the current financial year 2018/19 due to ethanol prices – both spot and forward prices – which have significantly fallen in the last few days contrary to all expectations.
"Due to the difficult market conditions, CropEnergies will pause production in its plant in Wilton, UK, from the end of November 2018 on."
Earlier this week, Redcar MP Anna Turley said: “This is extremely disappointing news and shows yet again how jobs and investment in the bioethanol industry and agriculture are at risk because the government have failed to deliver on the promises they have made to support E10.
Tees Valley Mayor Ben Houchen added: “This is obviously a worrying time for workers at Ensus this close to Christmas.
"I am meeting company directors next week to discuss what urgent help we can offer."
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