THE Ensus refinery in Wilton, near Redcar, is the largest facility of its type in Europe and a key part of the UK meeting its renewable fuel targets.

This week’s temporary shutdown is the third in three years and Ensus bosses admit they do not know when production will restart.

On the last occasion it halted production, after cheap US imports made the plant too costly to run, a predicted four-month mothballing stretched on for 15 months.

Last night, Ensus bosses were confident that a bright future lies ahead and, as a sign of faith, all 100 workers at the Wilton plant and its offices, in Yarm, have been retained on full pay.

However, for the plant to succeed it needs to overcome the challenge of rising raw material costs and lower-than-expected prices for ethanol.

How long it can wait for the market to swing its way remains to be seen.

The £300m Ensus refinery produces bioethanol – which is added to petrol – by breaking down starch in grains to sugars, which are fermented into alcohol and carbon dioxide.

The remaining protein and grain are used to make 350,000 tonnes of feed for pigs and cattle, and 300,000 tonnes of carbon dioxide for use in soft drinks and food every year.

Production at the plant started in February 2010, creating about 100 jobs and sustaining 1,000 posts during construction.

In March 2010, it shipped its first tanker of sustainably- produced bioethanol to Shell UK, as part of an agreed ten-year deal to take all the plant’s output.

Within weeks, a pungent stench from the plant triggered a storm of protest from nearby residents and the plant was taken offline.

The odour problems cost millions to fix, and the plant reopened in May 2010, but in May 2011, it was forced into a further shutdown.

Ensus blamed lowerthan- anticipated demand for ethanol across Europe and cheap imports.

The company retained all 100 workers on full pay, and said the plant would stop production for up to four months.

The plant was re-opened last August, after a 15- month shutdown, during which campaigners fought to close an EU loophole which allowed US importers to avoid tariffs and flood the market with cheap imported ethanol.

Liberal Democrat Redcar MP Ian Swales and North-East MEPs Fiona Hall and Stephen Hughes worked with industry leaders to re-open the plant.

Last August, Mr Hughes called on Europe to speed up its processes to prevent firms from being penalised after the EU loophole was closed.

Mr Hughes lobbied Brussels, writing to trade commissioner Karel De Gucht and calling for urgent action to keep the factory open, a move which helped Ensus make a complaint and led to a commission inquiry.