Latest news with #bioethanol
BBC News
a day ago
- Business
- BBC News
Future of Vivergo Fuels plant 'hanging in the balance', says boss
Workers from the UK's largest bioethanol plant have visited Westminster to raise concerns the facility could close within days without government of Vivergo Fuels in Saltend, near Hull, said the plant's future was "hanging in the balance" after the removal of a 19% tariff on US ethanol imports, which was part of the recent UK-US trade firm said that without urgent action, the plant, which employs more than 160 people, would no longer be government said it was working closely with the industry to understand the impacts of the trade deal and it was open to discussions over potential support. According to the Local Democracy Reporting Service, about 35 workers made the trip to Hackett, managing director of Vivergo Fuels, said: "With the future of the Vivergo plant hanging in the balance, our workers felt compelled to speak directly to their MPs about what is at stake."This isn't just about one site. It's about protecting thousands of skilled jobs, supporting British farming and preserving a vital part of our green energy infrastructure."MP for Hull East Karl Turner said: "The fact that dozens of workers had to travel from East Yorkshire to Westminster today shows just how serious this situation is."Vivergo is not only a major employer in our region - it's a key player in our green economy and food security."The new mayor of Hull and East Yorkshire, Luke Campbell, urged the government to "rethink" the trade deal with the US to protect British April, Associated British Foods (ABF) said it was in talks with the government to help save its Saltend plant after the company was forced to cut production levels due to low bioethanol Fuels produces bioethanol which is used in E10 petrol.E10, which was introduced in 2021 to help cut carbon emissions, contains up to 10% plant also produces animal feed, which is a by-product of the bioethanol production process. Listen to highlights from Hull and East Yorkshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here.
Reuters
3 days ago
- Business
- Reuters
Britain has 12 days to save bioethanol industry, says AB Foods
LONDON, June 3 (Reuters) - One of Britain's biggest bioethanol producers warned the government on Tuesday that unless it steps in with a support package for the industry within the next 12 days it will have to start closure processes at its plant. ABF Sugar, part of Associated British Foods (ABF.L), opens new tab, and Ensus together account for nearly all of the UK's bioethanol production capacity. "We have 12 days to save this industry," Paul Kenward, CEO of ABF Sugar, told lawmakers on parliament's Business and Trade Committee. Bioethanol is produced from crops such as wheat and is used to make petrol greener and sustainable aviation fuel. Byproducts include animal feed and carbon dioxide, the latter of which faced severe shortages in 2022. ABF Sugar and Ensus have warned that last month's U.S.-UK trade deal, which will see the UK's 19% tariffs on U.S. ethanol fall to zero, on top of existing regulations giving overseas producers an advantage in the British market, have made the operating environment impossible. They have said their plants at Hull and Teesside in northern England face closure. Along with supply chain partners, the plants support thousands of jobs. Kenward told lawmakers that by June 15 he needed to tell farmers whether he could sign new contracts for wheat supply. "Why would I do that unless I have some confidence that the government's going to step in?" he said. Kenward called on the government to urgently level the regulatory playing field, increase the amount of ethanol in UK petrol from 10% to 15% and support the development of sustainable aviation fuel. He also wants the industry to have access to short-term financial aid of up to 150 million pounds ($203 million). Kenward said AB Foods had invested 700 million pounds in the Hull site. 'Once it goes, it goes. Think what that does to future investors in green industries," he said. A government spokesperson said business minister Jonathan Reynolds had met members of the bioethanol sector and senior officials "continue to consider what options may be available to support the impacted companies". ($1 = 0.7396 pounds)
BBC News
28-05-2025
- Business
- BBC News
Saltend biofuel plant 'faces closure after US trade deal'
The UK's largest bioethanol plant will be forced to close unless the government acts, according to its April, Associated British Foods (ABF) said it was in talks with the government to help save its Vivergo Fuels site at Saltend, near Hull, after being forced to cut production levels due to low bioethanol Tuesday, Vivergo said the removal of a 19% tariff on US ethanol imports, which was part of the recent UK-US trade deal, was the "final blow".A government spokesperson said it was working closely with the industry to understand the impacts of the trade deal and it was open to discussions over potential support. Urgent action needed In a letter to farmers, Vivergo managing director Ben Hackett said: "Unfortunately, if there is no government intervention in the next few weeks, our plant will have to close."That is because the government has made a series of decisions that undercut UK ethanol production in favour of US imports. The most recent trade deal was the final blow."If there is no government intervention, we will not be able to purchase any more wheat outside our current, limited, commercial commitments."The firm said that without urgent action, the plant, which employs more than 160 people, would no longer be viable and its wheat purchases would Hackett added: "This is avertable. If the government provides sufficient policy certainty to us in the long term and ameliorates the effects of their decisions in the short term, we can continue to operate and expand production."But so far, they have made no commitments." Earlier this month, Business Secretary Jonathan Reynolds met representatives of ABF and the country's other key bioethanol producer, Ensus UK, which is based in firms said the the secretary of state agreed on the need for "urgent next steps" to protect the UK's bioethanol industry and had committed to act within "days, not weeks" amid concerns that hundreds of jobs could be at Hackett said: "So far, nothing has been forthcoming."However, he added: "We still believe this situation can be turned around – but time is rapidly running out."In response, a government spokesperson said: "We signed a deal with the US in the national interest to secure thousands of jobs across key sectors."We are now working closely with the industry to understand the impacts of the UK-US trade deal on the UK's two bioethanol companies and are open to discussion over potential options for support."The Saltend plant produces bioethanol which is used in E10 petrol.E10, which was introduced in 2021 to help cut carbon emissions, contains up to 10% also produces animal feed, which is a by-product of the bioethanol production process. Listen to highlights from Hull and East Yorkshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here.
The Sun
19-05-2025
- Automotive
- The Sun
UK drivers face soaring petrol prices thanks to Britain's new trade deal with the US, experts warn
MOTORISTS face soaring petrol prices thanks to Britain's new trade deal with the US, industry leaders and politicians warned today. The deal, which scraps tariffs on American bioethanol, could cripple the UK's green fuel industry by flooding the market with cheap, subsidised US imports. Bioethanol is a key component of E10 petrol. UK producers now say they can't compete on price – and fear being priced out entirely. If domestic production shuts down, Britain would be left at the mercy of foreign suppliers. The move would pose a major risk, as seen in 2011 when a US drought dried up ethanol exports. A similar supply shock – whether from extreme weather, shipping chaos or rising US demand – could leave the UK scrambling to find fuel elsewhere. Industry chiefs warned that if America's ethanol dries up again, the UK might have to turn to expensive Brazilian imports – or ditch the ethanol blend entirely. Both options would see prices at the pump rocket or leave drivers more exposed to global oil markets. Lib Dem trade spokesman Clive Jones slammed the government, saying: 'This is a very worrying prediction for motorists who have already been clobbered by the cost of living crisis.' He added: 'The government must publish a full impact assessment of its deal with Donald Trump, including any extra costs for motorists.' Tom Reid of the Renewable Transport Fuel Association warned: 'Scrapping tariffs on bioethanol imported from the US will have dire consequences for the UK bioethanol industry, which will not be able to compete on price against the subsidised American product. 'If the UK plants were to shut down as a consequence of this, it leaves the UK open to fuel security problems in the future, if, for whatever reason, the US stops exporting bioethanol to the UK. 'But by then the damage will have been done, the UK plants will have been scrapped, and we will have to import the bioethanol from somewhere else, which could potentially be very expensive – and it will be UK motorists who end up paying for it.'
Telegraph
19-05-2025
- Business
- Telegraph
Starmer is about to hammer the final nail in British farming's coffin
Farmers and fishermen are right to be worried they are being sold out by the Government. Seeing car workers in Labour constituencies favoured above rural residents in Tory and Liberal ones doesn't make it any easier to swallow: the feeling that we are being sold out to proffer international trade deals is inescapable. British wheat futures have already fallen on the news that 1.4 billion litres of bioethanol can come here annually duty free, the same quantity that we currently produce domestically. That may transfer jobs from the North of England to America's Trump voting corn-belt. If, as they have threatened, the UK's two bioethanol plants in Hull and Teesside close, then 2m tonnes of feed wheat grown by arable farmers in the North will have to go elsewhere. Livestock farmers will also be hit, as the main by-product of ethanol production is animal feed. That will now become more expensive, making it harder for our beef and pig farmers to compete globally. The other by-product is carbon dioxide, something we are short of in the UK. It's badly needed by the NHS. It's an example of how Britain's agri-industrial base could be eroded if government policy moves too far from protecting domestic production towards free trade, as happened with nearly fatal consequences prior to WW2 when we were ill prepared to withstand Hitler's U-Boat blockade. Starmer's Labour manifesto slogan: 'Food security is national security' now looks hollow. Farming unions have so far based many of their arguments on lurid scare stories about chlorinated chicken and hormone treated beef. These concerns have been answered by the government as both categories are specifically banned in the treaty. And some American ranchers have started producing hormone-free beef for British markets. But until we have transparent food labelling, particularly for ready-meal ingredients, and proper customs checks, we cannot have much confidence in the food standards of imported produce. In 2013 we had horsemeat on supermarket shelves masquerading as beef. And while many overseas farmers still don't have to tag cattle or keep whole-life medicine records there is little hope of food traceability. We are only one imported meat sandwich away from another foot and mouth epidemic. It is very hard to argue against free trade when it leads to lower food prices for all. What everyone should be focusing on is whether free trade is fair trade: the terms of trade between countries and whether British farmers' competitiveness is being unfairly hampered by the Government. We are farming with one hand tied behind our backs. This point was made, ironically enough, by US Agriculture Secretary Brooke Rollins on her visit to the UK last week. Subsidy removal in the UK puts British farmers at a disadvantage to their EU and US counterparts, who still have generous subsidies or a federal crop insurance programme to fall back on. We also have to comply with far more expensive red tape. And overseas farmers are not having to plan for a penal inheritance tax that would see the government take 20 per cent of the value of their farms and herds every generation through the Chancellor's family farm tax. On Thursday, the influential Westminster Environment Food and Rural Affairs Committee, dominated by Labour MPs, asked the Chancellor to look again at her inheritance tax plans. She should listen. Jamie Blackett is a farmer and the author of Red Rag to a Bull and Land of Milk and Honey
