Biofuels strategy could create 6,000 jobs for region
12:16pm Thursday 21st February 2008
A CONCEPT has been drawn up for a £1bn biofuels factory which could create thousands of jobs in the North-East.
Consortium North East Biofuels is putting together a plan, part of a wide-ranging biofuels strategy, for a synthetic biofuels factory to produce fuel for aviation and road transport from biomass such as trees, shrubs and grasses.
The factory, which, it is hoped, would be operating by 2020, would also produce biofuel as a raw material for petrochemical companies on Teesside.
The technology involved means the product created will be concentrated in either liquid or solid form, making transporting it more economically viable.
Many of the estimated 6,000 jobs that could be created would be in agriculture in the North- East, because farmers in the region would be the primary suppliers to the factory.
Consultant Peter Harrison, who has put together the concept for North East Biofuels and the North East Process Industry Cluster (Nepic), along with other industry bodies, said that by 2020 it would be difficult to produce enough biodiesel for the UK's demand based on current technology.
At the moment, biodiesel and bioethanol are produced by either crushing oil seed crops or fermentation processes.
But new technology would produce second-generation synthetic fuels from biomass, specifically non-food crops.
The former ICI engineer said Teesside would be the ideal place for the factory.
"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, it 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."
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 an industry that might lead to thousands of jobs."
A spokesman for regional development agency One North- East said: "The strategy highlights the long-term potential for biorefining to be of huge value to the region and its economy, as part of the work to position North-East England as a major hub for biofuels in Europe, with the infrastructure, process expertise and strong rural capacity to offer the entire process from seed to tank.
"It is very early days, but we very much look forward to seeing the results of the consortium's scoping work."
Mr Harrison said market demand already existed, with Volkswagen saying synthetic biofuels further reduce car emissions and optimise energy efficiency.
Rolls-Royce also puts biofuels at the top of the league table of environmentally-friendly fuels for aero engines.
The fuel can be produced either in a charcoal-type process, or by heating it to 800C so it vapourises into a gas that condenses.