A PANEL of MPs will today urge the government to implement a ten per cent green fuel blend in petrol station forecourts by 2020 – or risk the future of the industry.

The government is far behind target to introduce E10 – a blend of fuel containing ten per cent bioethanol – and one of only three UK producers has already been forced to mothball its plant.

Ensus, in Teesside, is a large-capacity producer and manufactures bioethanol from surplus feed wheat but has been forced to pause production several times in recent years due to weak demand. If the Government introduces E10 it is expected to secure about 100 jobs at Ensus and a further 6,000 in the supply chain around the region.

Its rival in Humberside, Vivergo, mothballed its plant in September.

Currently the petrol sold in forecourts is just five per cent bioethanol and plans to increase that amount to ten per cent to bring it in line with other European countries and the US have been delayed – meaning the future of the entire UK industry has been uncertain.

Now an All Party Parliamentary Group for British Bioethanol has published a report warning the UK could soon lose its bioethanol industry worth £1bn unless urgent action is taken.

It found that introducing E10 would save the equivalent emissions of taking up to 700,000 cars off the road and secure the industry, increasing confidence in green investments and paving the way for research on future carbon-friendly technologies.

Ensus not only uses surplus wheat not suitable for human consumption but also creates a high-protein animal feed from the by-products. It also captures the carbon dioxide produced to pass on to the drinks industry.

APPG Nic Dakin MP said: "With an urgent need to address the causes of climate change, improve air quality and support job creation in emerging green industries, practical measures which make petrol cars cleaner and greener must be a top priority for the Government who must now work to mandate the introduction of E10 in the UK by 2020 at the latest."

Grant Pearson, the Commercial Director of Ensus, said: "There is no silver bullet to decarbonise transport. This offers a much quicker solution than any other to reduce emissions and also secure the industry's future."