UK's largest bioethanol plant to shut in September ‘unless Government acts'
Hull-based Vivergo Fuels said that, given 'the strategic importance of a domestic ethanol supply', the Government has committed to formal negotiations to reach a 'sustainable solution'.
But the firm, which is owned by Associated British Foods (ABF), said on Thursday that it is simultaneously beginning consultation with staff to wind down the plant, which employs more than 160 people, due to the uncertain situation.
It said in a statement: 'Unless the Government is able to provide both short-term funding of Vivergo's losses and a longer-term solution, we intend to close the plant once the consultation process has completed and the business has fulfilled its contractual obligations.
'We would cease all manufacturing before the end of our financial year on September 13 2025.'
The statement said: 'In our interim results announcement on April 29 2025, we stated that the commercial viability of Vivergo, our bioethanol business, was being undermined by the way in which the UK Government was applying regulations to imported ethanol.
'Since then, the situation has been made significantly worse by the UK's trade deal with the US, which will allow tariff-free US ethanol into the UK.
'ABF has engaged in extensive discussions with the Government to find a financial and regulatory solution that would enable Vivergo to operate on a profitable and sustainable basis.
'Yesterday, our extended deadline for the Government to deliver that solution passed.'
Last month, Vivergo wrote to the wheat farmers who supply it, telling them it will have to close unless there is quick Government intervention.
The Vivergo Fuels plant in Hull employs more than 160 people (Vivergo Fuels/PA)
It said the removal of a 19% tariff on US ethanol imports, which formed part of the recent UK-US trade deal, was the 'final blow'.
The bioethanol industry says the deal has made it impossible to compete with heavily subsidised American products.
Vivergo said the Hull plant can produce up to 420 million litres of bioethanol from wheat sourced from thousands of UK farms.
It described bioethanol production as 'a key national strategic asset' which helps reduce emissions from petrol and is expected to be a key component in sustainable aircraft fuel in the future.
The plant is also the UK's largest single production site for animal feed and the company says it indirectly supports about 4,000 jobs in the Humber and Lincolnshire region.
Business Secretary Jonathan Reynolds met with representatives of ABF and the other key UK bioethanol producer, Ensus, in May.
Last month, a Government spokesman said it was working closely with the industry to understand the impacts of the UK-US trade deal on the UK's two bioethanol companies and is 'open to discussion over potential options for support'.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Herald Scotland
35 minutes ago
- The Herald Scotland
Food firm boss takes on Tanzania charity challenge
Departing on July 3, Mr Rowan will raise money for AWARE Scotland, which supports young people through respite breaks and days out; and The Haven, a Lanarkshire-based organisation that helps individuals and families affected by life-limiting conditions. The expedition will see Rowan join fellow riders from The Country Range Group for up to nine hours a day in the saddle under the Tanzanian sun. READ MORE: The route will pass through mountain trails, rural villages, and the foothills of Mount Kilimanjaro, ending at the Ngorongoro Crater National Park, one of Africa's most iconic landscapes. Together, the team is raising vital funds for MAG (Mines Advisory Group) International, which clears landmines, cluster munitions and unexploded ordnance in former war zones. Mr Rowan was also determined to make the challenge count closer to home by using the 'Bikes Against Bombs' ride to support Dunns' long-standing charity partners in Scotland. Mr Rowan, who has been with the company since 1989, said: 'Taking part in this challenge reflects the values we hold as a company. I wanted to mark the 150th milestone by doing something that makes a real difference to the lives of others. 'This will mark Bikes Against Bombs 10th ride, an initiative created by people in our industry to make a real difference. To mark 150 years of Dunns Food and Drinks, chairman Jim Rowan will cycle 380km across Tanzania this July in aid of Scottish charities AWARE Scotland and The Haven (Image: Herald Picture Agency) 'As a fourth-generation, family-owned business, we've been committed to fully participating within our communities . It's a privilege to ride in support of these causes, and it's been a privilege to spend so much of my working life as part of this company. 'It's going to be incredibly tough, but it will be a once-in-a-lifetime experience that I'm hoping through the generosity of sponsors will make a meaningful impact to the two Dunns' charities.' Founded in 1875, Dunns is one of Scotland's longest-established wholesalers, supplying food and drink to hospitality venues across the country. Ahead of its anniversary year, the business has outlined bold growth plans – but insists community and charitable work will remain central to its mission. Managing Director Julie Dunn carries on the family name in Dunns Food and Drinks in the footsteps of her father, Christopher Dunn, her grandfather, William, and great-grandfather/company founder, Joseph Dunn. She commented: 'The whole team is behind Jim and incredibly proud of what he's doing. Charity and community have been central to Dunns since day one, and I couldn't think of a better way to mark our 150th anniversary celebrations. 'But this is just the beginning, and we look forward to sharing more about our exciting plans to celebrate this big birthday.' The ride takes place from July 3 to 11 and is expected to raise tens of thousands of pounds. Supporters can follow the journey and donate here:
Rhyl Journal
41 minutes ago
- Rhyl Journal
Reynolds: Port Talbot plant does not meet US rules to get steel tariff exemption
The steel industry faces uncertainty over the US-UK trade deal finalised this month, which slashed tariffs on aerospace and auto sectors, but left levies on steel standing at 25% rather than falling to zero as originally agreed. Negotiations are ongoing to secure the outstanding tariff agreements. The executive order signed by Mr Trump suggests the US wants assurances on the supply chains for steel intended for export, as well as on the 'nature of ownership' of production facilities. Prime Minister Sir Keir Starmer has insisted the ownership structure of the British Steel plant in Scunthorpe does not need to change to complete the deal with the US. 'The issue with the implementation of the steel agreement is the melt and pour rules, which is the US interpretation of rules of origin around steel,' Mr Reynolds told reporters. He said that applies to the Port Talbot plant, where semi-finished products come into the UK and then go to the mills for processing to keep the business going. 'That doesn't meet their existing implementation of that in the US.' The British Steel plant is controlled directly by the Government, but is still owned by Chinese firm Jingye. Asked if British Steel's ownership was part of US trade talks, he said it 'comes up in the context of the US (being) very supportive of what we did' to take control of the plant. 'On British Steel, we have to resolve issues of ownership separate to issues around US trade,' he said. The ownership is something that needs to be resolved 'regardless' of the US talks. The Government plans to class Britain's steel and energy sectors as 'nationally important' to UK security under new procurement rules.
South Wales Guardian
41 minutes ago
- South Wales Guardian
Reynolds: Port Talbot plant does not meet US rules to get steel tariff exemption
The steel industry faces uncertainty over the US-UK trade deal finalised this month, which slashed tariffs on aerospace and auto sectors, but left levies on steel standing at 25% rather than falling to zero as originally agreed. Negotiations are ongoing to secure the outstanding tariff agreements. The executive order signed by Mr Trump suggests the US wants assurances on the supply chains for steel intended for export, as well as on the 'nature of ownership' of production facilities. Prime Minister Sir Keir Starmer has insisted the ownership structure of the British Steel plant in Scunthorpe does not need to change to complete the deal with the US. 'The issue with the implementation of the steel agreement is the melt and pour rules, which is the US interpretation of rules of origin around steel,' Mr Reynolds told reporters. He said that applies to the Port Talbot plant, where semi-finished products come into the UK and then go to the mills for processing to keep the business going. 'That doesn't meet their existing implementation of that in the US.' The British Steel plant is controlled directly by the Government, but is still owned by Chinese firm Jingye. Asked if British Steel's ownership was part of US trade talks, he said it 'comes up in the context of the US (being) very supportive of what we did' to take control of the plant. 'On British Steel, we have to resolve issues of ownership separate to issues around US trade,' he said. The ownership is something that needs to be resolved 'regardless' of the US talks. The Government plans to class Britain's steel and energy sectors as 'nationally important' to UK security under new procurement rules.
