A PICKERING-based waste-to-energy business has gone into liquidation with the loss of 12 jobs.

Bioflame ceased trading after its funding was pulled.

Victor Buchanan, managing director, said the directors were in the process of winding up the company.

“It’s hugely disappointing and it is just a disaster really,” he said.

Mr Buchanan said that one of the plants, owned by a Doncaster company, would continue to be run by that company, but he had “no idea” what would happen to the rest of the sites or half-built sites.

The company’s small plants, situated at existing recycling facilities, burn biomass materials such as waste wood to generate green electricity and heat.

Bioflame, which employed 38 people, went to the market for funding last year, securing a deal with cleantech and renewable energy fund ESB Novusmodus LP for an investment of £4.5 million.

It secured the investment in December 2010 to complete the commercialisation of the company’s technology, attract project funding, and accelerate the rollout of projects. But the funder pulled out after investing £3 million, believing the business would require more than the further £1.5 million agreed to reach its goals.

Mr Buchanan said the business plan and project development side of the company were successful, but it could not continue without cash.

“Bioflame had been a profitable business until it embarked on the expansion with the investment, and it had then grown too quickly,” he added.