$400 million UK wheat ethanol project on track despite British wobble on biofuels

In England, a $400 million, 330,000 ton wheat ethanol plant planned by Associated British Foods, DuPont and BP is still on track to commence construction this year. The owners of the project said they are not deterred by a potential revision or elimination of the British Renewable Fuel Obligation which sets biofuel production and consumption targets through 2012.

BP UK background

The CEO of BP said that “Ethanol is here today. It’s important. It matters. It pushes the ball forward, and we blend and sell 800 million gallons of ethanol a year in the United States,” adding that he expected biofuels to supply as much as 30 percent of global fuel demand.” Robert Lukefahr told the Wall Street Journal that “We have to have stable, long-term, clear policy so we know what the rules are.”

In England, DuPont and BP announced that test results showed that Bu16, a blend of 16 percent biobutanol and 84 percent gasoline, caused no harm to engines and did not “phase separate” in engine testing.

The companies have established a $36 million research lab in Hull, using wheat as a feedstock. The joint research efforts has resulted in 60 patent applications to date in its drive to establish a commercially viable butanol production process by 2010.

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