A MOTHBALLED £250m refinery remains at a standstill – but its owners say improvements are being made to raise its performance once work restarts.

CropEnergies AG says its Ensus bioethanol plant, in Wilton, near Redcar, is still at the mercy of industry prices and demand.

Last year, the company confirmed a quarter of its 100-strong Ensus team were leaving after a prolonged pause in production.

Work was halted nearly a year ago after bioethanol prices buckled under the strains of sluggish European markets and the lower oil price.

Bosses have now told The Northern Echo the lull will continue for an unspecified time, but added its 73 staff, including 60 at Ensus, are working hard to prepare the site for future use.

Joachim Lutz, CropEnergies’ chief executive, said: “Wilton is still at a temporary standstill and we have no set date for a restart.

“This depends on the development of the European bioethanol prices.

“We need sustainably stable prices and ethanol demand picking up in the UK for us to restart the plant.

“However, we are carrying out some projects for the improvement of the plant, so work at Wilton is ongoing.”

Mr Lutz was speaking after CropEnergies revealed its results for nine months of its financial year, which showed revenues were down 11 per cent to £420m compared to a year ago because of Ensus’ pause.

It also expects to incur special expenses of up to £15m because of Ensus’ standstill.

However, the German firm, which runs Ensus as a UK subsidiary, said earnings before interest, taxes, depreciation and amortization lifted from £15m to £67m, with income from operations shifting from a loss to a £37m gain.

Mr Lutz added the company expects EU decisions to increase the proportion of renewable energies in the transport sector to lead to further market growth in the medium-term.

The Ensus factory uses wheat to create bioethanol, which is added to petrol.

The remaining protein and grain is used to make thousands of tonnes of animal feed and carbon dioxide for the soft drinks and food market every year.

But the site has endured a chequered history, with low demand, poor harvests, rising energy costs and even a bad smell forcing closures and hindering production since it started in 2010.