Biofuels plant set to create jobs in Dagenham

29 July 2010

A BIOFUELS plant is set to be built in Dagenham, creating 1,200 jobs.

British Airways (BA) and Solena Group Inc plan to start building the site - as yet undisclosed - next year, which will produce jet biofuel from waste biomass.

The biofuel will be used to power part of British Airways' fleet from 2014.

Solena, based in Washington, USA, will spend up to $300million (£197m) building the plant and are in talks with banks, private equity companies and pension funds to finance the project.

Airlines are preparing to enter the European Union's cap-and-trade system in 2012.

BA plans to buy all of the plant's 16million gallons of biofuel annually for up to 10 years, more than twice the amount to supply its flights from London City Airport.

Jonathon Counsell. head of environment at BA, said: "Once it's been proven to be successful, we would look to build many more of these plants. We're trying to encourage other airlines to go down this route so there are other plants all around the world and we can pick up this product anywhere we fly."

Subject to gaining planning permission, construction on the facility is scheduled to commence in 2011 before it becomes operational between the beginning and middle of 2014.

Meanwhile, the number of people unemployed has hit 8,000 in the borough and the government says its work programme, set to start in 2011, will help those on jobseeker's allowance and employment and support allowance.

Employment Minister Chris Grayling said: "There is still a huge amount of work to do to revitalise the economy and create an environment where businesses are growing and employing people again.

"While there are fewer people on jobseeker's allowance this month, the numbers claiming other benefits remains stubbornly high, and many of these people have been dependent on benefits for years. That's why we are pressing ahead with the work programme to give these people the support they need when they need it.