Vivergo Fuels of the UK on April 10 reopened its bioethanol plant in East Yorkshire after a four-month shutdown that was in response to weak ethanol prices and a lack of policy clarity.

The company, however, warned that government action on introducing E10 fuel is needed to secure its future.

Trading conditions are expected to improve in the coming months after the Renewable Transport Fuel Obligation (RTFO) passed through Parliament in March. The RTFO, coming into effect later in April, targets an increase in the use of renewable fuels in transport from 4.75% to 9.75% by 2020.

The GBP-350-million (USD 496m/EUR 401m) plant is the UK's largest bioethanol producer. It can produce up to 420 million litres (111 million gallons) of bioethanol from feed wheat that is supplied by farms in the region.

Article by Renewables Now: UK's Vivergo Fuels reopens bioethanol plant