BOSSES behind a revived £250m refinery say fuel reforms can provide a catalyst for future growth.

CropEnergies says its Ensus bioenthanol plant, in Wilton, near Redcar, stands well placed to meet rising demand for renewable transport power.

Ensus uses wheat to create bioethanol that is added to petrol, but has been beset by delays.

The sluggish value of oil and falling prices caused work to be postponed last year, though the site is now back at full capacity after trial runs to improve reliability.

Officials last month said Ensus’ resurgence could push full-year company revenues for 2016/2017 to £617m, which would far exceed previous estimates of £549m.

However, upon announcing the firm’s latest financial results today (Wednesday, October 12), they revealed Ensus helped push production levels higher to 450,000 cubic metres in the six months to August 31, adding operating profit held steady at around £37m.

The firm added that despite a fall in trade volume, which pushed first half revenues down to £314m, from £351m a year ago, it remains confident fuel changes will provide a boost.

Joachim Lutz, chief executive, said: “Studies show an increase in bioethanol from five to ten per cent involves an appreciable reduction in emissions.

“Our medium-term expectation is that the resolutions of the Paris climate summit and EU decisions to increase the proportion of renewable energies will ensure further market growth.

“We are well-equipped for the increase in demand.”

Germany’s CropEnergies runs Ensus as a UK subsidiary and the plant uses remaining protein and grain from its bioethanol process to make animal feed and carbon dioxide for the soft drinks and food market.

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