VIVERGO Fuels, the UK’s biggest producer of bioethanol, is calling on the Government to introduce E10 fuel and cultivate an alternative domestic market for farmers.

Vivergo is the UK's major wheat buyer boosting farmers income to the value of £1m per month, compared to the smaller export value they would receive.

The company takes up to 100,000 tonnes of animal feed grade wheat a month – 1.1m tonnes a year – to create its ethanol, which is then blended into petrol. Most of the farm suppliers are in Yorkshire and Lincolnshire.

However, the company, which operates a £350m plant at Salt End near Hull, says it could play an even bigger role and has asked the Government to increase the ethanol blending ratio in petrol from today's five per cent to 10 per cent, through the introduction of greener fuel, E10.

Mark Chesworth, managing director of Vivergo Fuels, said: "Increased demand for bioethanol will allow farmers to sell their wheat in the UK instead of exporting, increasing their earnings. This in turn will benefit the wider UK economy and support jobs throughout the supply chain, further boosting UK industry."

Meurig Raymond, NFU president, said: "The UK biofuels industry is incredibly beneficial to farmers across the country, as it adds value to grain and oilseeds for feed and fuel markets. The process ensures that animal-grade wheat is bought at a fair price, and the bi-product of animal feed creates a collaborative process that benefits both the farmers and the biofuels industry."

By 2020, all European countries, including the UK, must ensure that 10 per cent of transport fuel is sourced from renewable sources to reduce transport’s environmental impact, which is increasing year-on-year.

E10 will help to reduce global emission levels, mitigate the rapid rate of climate change, and improve air quality.