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Vivergo bioethanol plant near Hull faces closure after government rejects funding plea

Vivergo bioethanol plant near Hull faces closure after government rejects funding plea

ITV Newsa day ago
A bioethanol plant near Hull is facing closure after the government said it would not be providing grant funding to keep it afloat.
Vivergo Fuels, which employs 160 workers at the site, says it is facing closure within weeks following the decision to end the 19% tariff on American bioethanol imports as part of the recent UK-US trade deal.
It had been in talks with the government to secure financial support but the Department for Business and Trade said on Friday it had taken the "difficult decision" not to offer funding as it would not provide value for money for the taxpayer.
A spokesperson said: "We recognise this is a difficult time for the workers and their families and we will work with trade unions, local partners and the companies to support them through this process.
"We also continue to work up proposals that ensure the resilience of our CO2 supply in the long-term in consultation with the sector."
The owners of the plant said they were disappointed the media was told the decision before they were.
A spokesperson for parent company ABF said: "It is deeply regrettable that the Government has chosen not to support a key national asset.
"We have been fighting for months to keep this plant open. We initiated and led talks with Government in good faith. We presented a clear plan to restore Vivergo to profitability within two years under policy levers already aligned with the Government's own green industrial strategy.
"In making this decision, the Government has thrown away billions in potential growth in the Humber and a sovereign capability in clean fuels that had the chance to lead the world."
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