New biofuel announcement good news for farming and society

The announcement that the production of the next generation of biofuels will begin in Britain in 2007 is good news for energy supply, climate change mitigation and farming says the NFU.

British Sugar and Associated British Foods announced yesterday they will collaborate with BP and Du Pont to develop advanced biofuels in the UK. Under the agreement the British Sugar bioethanol plant, currently under construction in Wissington, Norfolk, will be converted to the production of biobutanol. British Sugar has committed to using locally grown sugar beet for the plant. The resulting biobutanol will be blended with petrol in the UK.

The group will also carry out a joint feasibility study, which could lead to cooperation in constructing a much larger facility for biofuel production using cereals. If this happens, the NFU estimates the plant could be using up to one million tons of wheat – a third of what the UK exports annually – which would have a huge impact on UK cereal prices and options.

Paul Temple, vice chairman of the NFU, said: "It's great news that these companies have chosen the UK to develop cutting edge biofuel technology. We've been championing farming as one of the answers to climate change and secure energy reserves for some time now. At last it looks like there is real commitment from big business to allow this fledgling industry to get off the ground.

"This is excellent news for farming. Farmers want to contribute here. Renewable energy from farmland provides a lot of answers for the country. It helps the Government meet EU targets on renewables, it helps to secure a reliable energy resource to power the country and it helps to run the rural economy. There is no doubt it is a great business opportunity and farming is a modern dynamic business which wants to go places."