Report: Europe’s largest wheat ethanol plant to shut temporarily due to high wheat prices
14 May 2011
Agrimoney reports that the UK’s Ensus wheat ethanol plant, the largest such in Europe, will temporarily shut down in what it believes to be a response to high wheat prices. Wheat prices hit a record £222 (US$360) per tonne on the London futures market last month Ensus has not confirmed or denied the report.
A shutdown could enable the site to tap into newly harvested supplies being offered for lower prices. London’s new-crop November lot was trading $173.50 a tonne in late deals in London, a discount of nearly 15% to the expiring May contract.
Closure would represent a further hiccup for a UK wheat ethanol industry which has already been dented by building delays, at both the Ensus site, whose construction was held up by industrial action, and the Vivergo plant being developed by Associated British Foods, BP and DuPont...Ensus has also been ordered by UK environmental watchdogs to install equipment to tackle odours which have prompted complaints from neighbours to the site.
(A hat-tip to John!)
Use the wheat straw and not the wheat grain...simple.
Posted by: SJC | 14 May 2011 at 06:12 AM
Feeding our gas guzzlers with edible wheat was arch-ridiculous. Only people with $$ profits above all else would attempt it. Why was it allowed in the first place. The same could be said about corn derived ethanol.
Using wheat straws is a better idea.
Latest stats:
1) Assets of USA's millionaires and billionaires will more then double, from $92T to $221T, by 2020. Net assets of the remaining 95% living in USA will increase by 3.2% unless the economy drags on, in which case, their assets could go down.
2) Managers of mid-size and large corporations make 230 times the salary of their average employees and the gap is spreading fast.
How long can this go on until we have the biggest bubble of all times?
Posted by: HarveyD | 14 May 2011 at 08:09 AM
Nice stats Harvey. You may well be right, but a link would be nice? Thanks...
Posted by: JN2 | 14 May 2011 at 09:54 AM
CEO to lowest paid is around 400 to 1 and rising. The latest report was that CEO pay is rising again after the recession. They sit on a ton of money, but will not hire. What is best for the company may not be best for the country.
Posted by: SJC | 14 May 2011 at 09:59 AM
Ceo pay rises as a company grows.
As for wheat to fuel.. again its not up to you to decide.. if wheat is cheap enoughas food that fuel companies can buy alot of it then thats what happens. If it isnt then it stops.
The amount of wheat in your wheaties is about 3 cents worth....
Posted by: wintermane2000 | 14 May 2011 at 11:27 AM
It is up to governments to decide and if the governments are by the people the people decide.
Posted by: SJC | 14 May 2011 at 11:56 AM
JN2...it was on the local paper this morning.
One firm (Mega Brand) keeps losing $$M for the last three years but paid their top managers 5+ millions each/year. There are hundreds such examples. GM used to be a perfect example.
SJC...I believe the 400 : 1 for USA. My stats were for Canada where the spread is not quite as bad but is getting wider here too.
Posted by: HarveyD | 14 May 2011 at 12:28 PM
As far as I am concerned, whether a 200,300 or 400 to 1 ratio, that CEO better be able to walk on water and turn water into wine for that kind of money.
Posted by: SJC | 14 May 2011 at 12:33 PM
Specially when they drive the firm into bankruptcy.
Posted by: HarveyD | 14 May 2011 at 02:03 PM
If they lay off a bunch of people, they get a bonus.
Posted by: SJC | 14 May 2011 at 02:18 PM
Odd I could have sworn I posted again... hmm
They most likely are paying the ceo that much because while not great its bloody hard to find even a so so ceo and loosing one and having a bad ceo take thier place is REALY bad.
And on wheat and the gov.. unless the gov can afford gargantuan subs for fuel they wont manage to gain more food by outlawing food crops in fuel they will get get more farmers growing dedicated fuel crops.
Posted by: wintermane2000 | 14 May 2011 at 08:13 PM
W-2000. The people should have a say in what food is used to produce liquid fuels for our over sized gas guzzlers. Wheaties are $6/box and many will have to stop eating it. Bread is reaching $3.50/loaf and so is one L of milk. Large poor families may no have enough $$ for full breakfast soon. You be surprised to know how many children go to school on empty stomach.
Posted by: HarveyD | 15 May 2011 at 08:08 AM
I won't get into CEO pay, but there are many MBAs that could do a better job for less than $10 million per year.
The food/fuel debate is easy to resolve, use cellulose for fuel and grain for food/feed. Why we would choose to have controversy and argue when a solution is at hand baffles me.
Posted by: SJC | 15 May 2011 at 09:21 AM
harvey you wont change that unless you sub the food as the FUEL costs are what have pushed food costs up. The food in that wheaties doiesnt cost much the fuel used in making and shipping it does tho.
And sjc again you ignore the fact fuel is more profitable then food so all you get is more dedicated fuel crops and less food crops.
I know around here fuel crop corn varieties are popping up all over. The stuff realy isnt all that edible by people but after being processed it does make useful cattlefeed. Im sure they are wrking of fuel stock wheat varieties as well.
Posted by: wintermane2000 | 15 May 2011 at 10:16 AM
Oil and other fuels cost a great deal more than it costs to get them out of the ground because the world governments allow the speculation on the prices with the vast profits made in previous years and in other speculations such as real estate. ..HG..
Posted by: Henry Gibson | 15 May 2011 at 12:45 PM
Use north sea gas or coal to make hydrogen and carbon monoxide that can be fed to the organisms to make ethanol. ..HG..
Posted by: Henry Gibson | 15 May 2011 at 01:35 PM
30 million acres of distillers dried grain is more than enough from the ethanol industry. They can only feed just so much to cattle and if they feed too much they have to use more antibiotics because it is not healthy for them.
I am saying plant the corn crops for food. Use the stalks and cobs to make fuel and phase out corn grain ethanol in favor of cellulose biofuels. If you gasify the cellulose you can make many different kinds of fuels and not just ethanol. You can make synthetic gasoline that just blends in with the petroleum refined product.
Posted by: SJC | 15 May 2011 at 01:50 PM
One of the effects of alternatives is the mix. When oil is refined, a certain percentage is gasoline and some of it is diesel and jet fuel. I don't know how variable the ratios are, but this is a major consideration.
Posted by: SJC | 16 May 2011 at 08:57 AM