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EU regulators approve UK biofuel plant

September 10, 2007
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The Associated Press reports that EU regulators cleared BP PLC and Associated British Foods PLC to develop a $400 million bioethanol plant in the northern English city of Hull as BP seeks alternative forms of energy generation. The European Commission said the deal was not likely to affect fair competition in Europe because the two companies did not control enough of the bioethanol market in the region to be able to fix prices. BP and ABF will each hold 45 percent stakes in the plant. Dupont will take the remaining 10 percent. From 2009 or 2010, the factory will have an annual production capacity of 111 million gallons from wheat feedstock. Bioethanol can be blended with gasoline or other fuels to run cars or generators, giving off fewer greenhouse gases than oil when burned. The EU currently aims to replace 10 percent of its transport fuel with biofuel by 2020 in an effort to tackle climate change and reduce dependence on imported oil.

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