Karen Mclauchlan,
Evening Gazette

29th September 2006

An American energy company has confirmed it has set its sights on Billingham to build a multi-million pound renewable energy plant.

It emerged earlier this month that Losonoco was considering Teesside as the location for a new bioethanol plant.

Today bosses said it was hoping to bring the £60m development to Billingham, which will create 80 direct and 220 indirect jobs.

It added it was the region'sexpertise in chemicals and support from local business development organisations which had attracted it to Teesside.

Losonoco's plant will turn wheat crops into ethanol fuel.

The company said it hoped the plant would be "operational by the end of 2008".

A spokesman added: "In phase one we plan to use locally harvested wheat.

"Phase two will see us implement a waste to ethanol capability and we will be looking for large quantities such as biodegradable waste such as wood chips, forestry waste, sawmill waste, pulp residue (from paper making), bark, any type of straw, energy crops such as miscanthus or short rotation coppice, waste paper, garden waste and even contaminated wood.

"Losonoco is currently working with the National Industrial Symbiosis Programme, to help source feedstock supplies.

The spokesman added: "We see Teesside as becoming a centre of excellence for biofuels and the renewable energy industry.

"We are keen to play a very active role in this development."

The plan is the latest in a stream of biofuel projects on Teesside.

Production at Biofuels Corporation's £45m facility at Seal Sands got under way earlier this year - with plans already in the pipeline for a second facility.

Stokesley-based Vireol hopes to build a £100m bioethanol plant on Teesside.

D1 Oils has started producing biofuels at its Middlesbrough base.

And Tees Valley Biofuels hopes to build a £47m oil seed rape processing plant on Teesside.