direct/ ENSUS PLC: First UK Bioethanol producing company to list on AIM

Ensus, a UK based renewable energy company, is pleased to announce that it is seeking to list on the AIM market of the London Stock Exchange and raise between £80 and 90m.

Ensus plans to become a leading provider of bioethanol to the European transport fuels market, using wheat predominantly sourced from Europe as a feedstock and plans to build a number of world scale plants in Europe.

The Company has a binding commitment to underwrite over £150m in debt financing, subject to raising the equity required from institutional investors during the Company´s investor roadshow.

Delivering the Strategy

The successful execution of Ensus´ strategy is based on:

- securing strong strategic partners that have the ability to support the company´s growth aspirations

- maintaining a low cost base by producing bioethanol from world scale plants in locations that can offer existing transport and utilities infrastructure

- maintaining flexibility to allow feedstock to be acquired at competitive prices and bioethanol to be sold at the best price by locating plants close to ports

- having an experienced management team with a strong track record of operating similar businesses supported by a board of directors with relevant industry, political and financial experience

Long Term Contracts

Ensus has entered into long term contracts with Shell Trading to purchase all bioethanol produced at the Plant, with Glencore for wheat supply and DDGS off take, with SembCorp Utilities for the provision of utilities at the Plant and with Vopak for the storage and handling of bioethanol.

Management Team

The management team has a broad range of skills, experience and expertise in establishing, operating and growing businesses similar to Ensus. The Company is chaired by Sir Rob Margetts CBE and its non-executive directors all have relevant industry, political and financial experience at senior corporate and government levels.

World Scale Bioethanol Plant

The Group´s first plant will use established and proven technology from Katzen; a leading technology company in the industry, and will be built on the Wilton International site on Teesside in the North of England. The plant will be on an integrated petrochemical site with excellent road and port access for both the supply of feedstock and the transportation of the finished product, bioethanol.

Ensus UK has an option to purchase a 30 acre plot at Wilton (which it will exercise following Admission) and has a fixed price contract with Simon Carves, a leading engineering contractor to build the Plant. Construction is due to commence in the second quarter of 2007. Further sites in Europe with similar characteristics to the site at Wilton have been identified and the Company is working towards securing options to purchase these.

The Plant will have an annual production capacity in excess of 400 million litres. Detailed design of the Plant has commenced and plant commissioning is planned for the third quarter of 2008 and after a period of testing, the Plant is expected to enter production in the fourth quarter of 2008.

Market Opportunity

The EU and the UK Government are committed to reducing the use of fossil fuels in order to reduce greenhouse gas emissions and dependency on oil and to enhance security of energy supply. A number of EU Member States (including the UK) have introduced, or are proposing to introduce, legislation to support biofuels by providing tax incentives and mandatory targets to increase the proportion of biofuels used in transport fuels.

In 2003, the European Union issued a directive which targeted 5.75% of transport fuels by energy content to come from biofuels by 2010. At the same time a directive was issued enabling member states to encourage the use of biofuels through tax incentives. As a result, EU Member States have set their own targets and introduced legislation in support of biofuels including reducing fuel taxes and setting mandatory targets. In the UK biofuels currently receive a 20pence/litre fuel duty differential compared with regular petrol and diesel. The UK Government has also announced that from 2008 it will be introducing a Renewable Transport Fuels Obligation (RTFO) to further support the use of biofuels, with a target of 5% of all road fuels sold in the UK coming from renewable sources by 2010. The 2006 Energy White Paper made plain the UK government´s commitment to increase targets beyond 5% after 2010. Other EU countries have taken similar actions. Germany has offered a 100% fuel tax exemption and France wishes to go further than the current directive by setting a target of 7% by 2010 and 10% by 2015.

At present, the UK does not currently produce any bioethanol for fuel purposes meaning that existing consumption is entirely sourced through imports.

Commenting, Sir Rob Margetts, Chairman said:

"I am very pleased to be involved with Ensus which is planning to be a front runner in the rapidly developing European biofuels sector.

With the European Union´s policy targeting 5.75% of transport fuels to come from biofuels by 2010, Ensus is well positioned to assist in reaching this goal.

We are delighted to have such strong and committed partners involved in our first project in the UK and are developing plans to build further plants across Europe.

Enquiries:

National Media: Pelham Public Relations
Charles Vivian/ Kate Catchpole
Tel: 020 7743 6670
ensus@pelhampr.com

Local Media:
Terry Waldron
Tel: 01642 459955

Ensus
www.ensusplc.com
Alwyn Hughes
Tel:01642 794040


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