Ensus support extended as wheat questions linger

The government has quietly extended support for bioethanol producer Ensus until the end of October, providing a further three months of domestic CO2 production and keeping open an important market for feed grain.

The move is significant for farming because the Teesside plant supplies CO2 used by abattoirs to stun pigs and poultry, and by meat processors and food manufacturers for packaging fresh products.

See also: Government under pressure to extend Ensus CO2 support deal

But it also revives questions over whether taxpayer support should be tied to greater use of British wheat, after the NFU criticised Ensus’ historic reliance on imported maize and called for any government intervention to directly benefit UK arable farmers.

The extension has not yet been announced publicly. But Farmers Weekly can exclusively reveal the Department for Business and Trade (DBT) has agreed for production at the plant to continue until the end of October.

Ministers announced in April they would fund a three-month restart of the plant after conflict in the Middle East raised concerns about the resilience of UK CO2 supplies.

At the time, they said the intervention would be kept under review and could be extended if market conditions required it.

The government has declined to disclose the cost of the latest extension. Farmers Weekly understands the expenditure has been independently verified, but remains commercially sensitive.

The NFU welcomed the extension, but reiterated concerns that taxpayer support should benefit British arable farmers.

The union’s combinable crops board chairman Jamie Burrows said continued production would provide greater stability for food and drink businesses that rely on CO2 for packaging and processing amid continued global uncertainty.

However, he said it remained “deeply disappointing” that government funding was not tied to a requirement for Ensus to use British wheat.

“Ensus said the deal would support UK agriculture, and those commitments should be delivered,” he said, adding that a viable domestic bioethanol sector was also important for CO2 security, animal feed production and fertiliser resilience.

British Meat Processors Association chief executive John Powell also welcomed the decision, describing the government’s commitment to securing additional CO2 supplies through Ensus as positive news for the meat processing sector.