Eastern Daily Press

Britain's first refinery to produce “green” fuel from sugar beet will come on stream in Norfolk in less than two years, said British Sugar.

The £10m plant will be built at Wissington, near Downham Market, on the site of Europe's largest beet sugar factory and will produce 5pc of the nation's green fuel.

It is a major boost for Britain's fledgling biofuels industry, which could create thousands of jobs and help the rural economy.

The plant will process 750,000 tonnes of sugar beet to produce 55,000 tonnes of bioethanol.

Mark Hudson, president of the Country Land and Business Association, estimated that using 5pc of bioethanol in petrol could create 10,000 jobs and reduce carbon emissions from vehicles by half.

Peter Williams, British Sugar's development manager, said: “We will be turning sugar beet into alcohol or ethanol by fermenting partially-refined sugar.”

The firm submitted a formal application to West Norfolk Council last December but has now placed a contract to design the first bioethanol plant. It will come on stream in the first quarter of 2007.

The Wissington factory, which was built in 1927, processes a quarter of the country's sugar beet - more than two million tonnes. It also produces the right blend of sugar syrups or “thick juice” for fermenting into bioethanol. Up to 5pc of this can be used in all petrol-engine vehicles without any modification.

A national coalition including environment-alists, farmers, car makers and British Sugar called on the Government yesterday to force oil companies to increase the volume of biofuels on sale. They want the so-called renewable transport fuel obligation in the Energy Act 2004 to be implemented.

This would boost home-grown production of biofuels. The backers include Ford, Saab, the Transport and General Workers' Union, Friends of the Earth and leading farming organisations.

Karl Carter, British Sugar's manufacturing director, said: “Bioethanol gives the Government an immediate opportunity to tackle this situation and regain the initiative on climate change. This is an environmental win-win for the UK.”

Britain must source 5.75pc of fuel supplies as renewables by 2010 - currently it is 0.03pc, mainly by converting waste cooking oil into biodiesel.

Campaigners said using 5pc bioethanol - from sugar beet or wheat - would reduce carbon emissions by the equivalent of taking a million cars off Britain's roads.

Britain trails Europe in “green” fuel production; Germany makes 1.5m tonnes of biodiesel from oilseed rape - and production is rising by 40pc to 50pc a year.

Even America has 12pc of cars fuelled by biofuel blends.

With reform proposals for Europe's sugar regime expected on Wednesday, beet growers face major price cuts of more than 35pc, down possibly to less than £20 a tonne.

British Sugar has indicated it will offer a competitive price to secure beet.

Mark Carr, British Sugar's chief executive, said: “Placing the design contract represents a significant step forward and clearly signals our intention to be part of the exciting new industry.”