INEOS Enterprises announces its intention to invest in the UK Biofuels sector
INEOS Enterprises has today announced its intention to make a significant strategic investment in the UK biofuels sector, potentially at the INEOS site at Grangemouth, Stirlingshire. The Grangemouth Site is one of a number of possible locations in the UK suitable for such an investment.
At the heart of this investment is a new biodiesel facility that would provide a secure supply of biodiesel to the INEOS Refining operations at Grangemouth.
The investment could also include a bioethanol facility, which would take advantage of INEOS Enterprises’ knowledge and expertise in synthetic ethanol. INEOS Enterprises operates synthetic ethanol plants at Grangemouth, and is the largest synthetic ethanol producer in the world.
Both investments would provide a strong platform from which INEOS Enterprises could grow its existing biofuels business in light of the significant increase in demand for biofuels predicted in the UK as a result of the Renewable Transport Fuel Obligation.
Harry Deans, CEO of INEOS Enterprises comments: “With more than ten years experience in this sector, INEOS Enterprises is extremely well placed to make this investment and has an excellent track record of exploiting market opportunities and developing world class businesses. There are excellent synergies between the INEOS Enterprises and INEOS Refining businesses at Grangemouth.”
INEOS Refining is a very significant fuels player in the UK market with growth intentions focused on middle distillates. As such, the proposed INEOS Enterprises investment in biofuels is highly compatible with INEOS Refining's demand and growth intentions.
Continues Harry: “The UK is fully committed to the increased use of biofuels as part of its energy mix and we believe that this investment will make an important contribution towards this. With the significant growth in demand for biofuels in the UK as a result of the Renewable Transport Fuel Obligation it is clear that biodiesel will become a major renewable fuel.”
In 2005, INEOS Enterprises announced plans to double its biofuel capacity at its site in Baleycourt, France, where it will supply some 220,000 tonnes of biodiesel to the French markets by 2008. Here, a €70 million investment in a new combined rapeseed crushing and biodiesel plant is well underway, working in partnership with the French Authorities and a local farming co-operative. The Company is also looking to increase its biofuels business across Continental Europe.
INEOS Enterprises hopes that the new biodiesel facility at Grangemouth Site could be up and running by 2008.
For further information please contact:
Craig Welsh, INEOS Enterprises Press Office
Phone: 01928 511528
Notes to editors:
- INEOS is a leading global manufacturer of refined products and basic, intermediate and speciality chemicals. The Company is made up of multiple decentralised businesses, each with a major chemicals company heritage.
- The INEOS production network spans 68 manufacturing facilities in Europe, North America, South Africa, Asia and Africa. The combined INEOS Group, which includes the recently acquired Innovene (BP) people and assets, generates more than $33bn in revenues and has more than 15,000 employees. This makes INEOS the third largest independent chemicals company in the world and the largest in the UK, as well as the country's largest private company.
- INEOS Enterprises is a portfolio of eight leading businesses manufacturing chemical products in Northern Europe and Southeast Asia, with sales of these products to customers around the world. The Company is focused on the developing needs of customers and rapid growth through investment in new products and manufacturing facilities or by acquisition. The Company has sites in the UK, France, Germany and Thailand.
- Biofuels are sources of energy that are manufactured from renewable resources, for example rapeseed. Specifically, biodiesel/ethanol is an alternative fuel produced from renewable sources such as vegetable oils that can be blended with diesel/gasoline and used to power conventional diesel/gasoline engines without modification. It can also be used as a replacement fuel for oil in industrial processes.
- INEOS Enterprises has over 10 years experience in biofuels production from its site at Baleycourt, France. Biodiesel is strategically important to the Company, underpinned by an agreement to deliver higher volumes for the fuel industry in France and Germany over the coming years.
- INEOS Enterprises currently employs around 450 people worldwide and has an annual turnover of around €500 million.
- INEOS Refining is the largest independent refiner in the EU and the ninth largest overall, with a total refining capacity of 410,000 barrels per day. The Company employs some 930 people at two refineries: Grangemouth and Lavera. The Grangemouth refinery supplies the fuels markets of Scotland and northern England and is directly connected to North Sea crude sources by the Forties Pipeline System and imports other crudes via its own deep-sea terminal at Finnart on the west coast of Scotland. The Lavera refinery supplies the fuels market of France, Switzerland and southern Germany, sourcing crudes in the Mediterranean basin from the Middle East, North and West Africa and the Former Soviet states.