UK biomass fuel producer goes into administration

A UK-based biomass fuels producer and supplier has been forced into administration after failing to meet debt repayments to creditors.

Silvigen, established in 2005 and based in North Humberside, began successfully processing woodwaste into fuel for co-firing in coal-fired power plants from 2006.

Despite winning contracts with UK power generating companies to supply them with biomass fuels, a decrease in profits and rising debts has hit hard and the company now shows a negative net worth of £2.8 million ($4.5 million).