Wed, 28 May 2025

Wed, 28 May 2025 Biofuel plant 'faces closure after US trade deal'

Vivergo Fuels, based near Hull, says government support is needed within "the next few weeks".
Vivergo Fuels, the operator of the UK's largest bioethanol plant, claims that it will be forced to close unless the government intervenes. The company, which employs over 160 people, has been affected by low bioethanol prices and the removal of a 19% tariff on US ethanol imports as part of the recent UK-US trade deal. In a letter to farmers, Vivergo's managing director Ben Hackett said that the plant will have to close if there is no government intervention in the next few weeks. He stated that the decision by the government to remove the tariff was the "final blow" and that without urgent action, the plant would no longer be viable. The company also announced that it will stop purchasing wheat outside of its current commercial commitments if there is no government support. Vivergo claims that the situation can still be turned around but time is running out. In response to Vivergo's concerns, a government spokesperson said that they are working closely with the industry and are open to discussions over potential options for support.
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