Ensus, a UK-based biofuels producer, is planning to suspend operations at its bioethanol plant in northeast England over adverse market conditions.
Commenting on the move, Ensus spokesperson was quoted by the Reuters as saying that the company would suspend the operations at its plant for a certain period of time in response to the market conditions.
Currently, the plant has a capacity to produce about 400 million to 450 million liters of bio-ethanol annually from about 1 million tons of wheat.
The company noted that the price of ethanol in the European market has not increased in regard with the costs of the input resources.
"In the UK the poor wheat harvest in 2012 has also had an adverse impact on the quality and price of the feed wheat feedstock used within the plant, while rising gas prices have pushed our costs up considerably," spokesperson added.
Bioethanol, which is a type of alcohol, can be used as an alternative for petrol.