Sun, 03 Aug 2025

Sun, 03 Aug 2025 Workers 'in limbo' as biofuel plant takes final delivery

Employees and suppliers are warning of a crisis point for the site near Hull amid government talks.
Vivergo Fuels, the UK's largest bioethanol plant at Saltend, may shut down due to government decisions on US trade imports. The company, owned by Associated British Foods (ABF), has begun consulting staff about closure and estimates that 4,500 jobs in the supply chain will be affected if production halts before September 13th. The plant relies on a tariff that was removed as part of the UK-US trade deal, making it uncompetitive with US imports. ABF had initially raised the prospect of closure in April due to low bioethanol prices. Managers and staff at Vivergo are calling for financial help from ministers to save the plant, which employs over 160 people. They estimate that without support, production may cease due to the uncertain market conditions. The government says it is in formal discussions with Vivergo and wants to find a way forward that protects supply chains, jobs, and livelihoods. However, managers and staff are worried about the uncertainty and its impact on their families' lives. Farmer Matt Pickering, who has sold wheat to Vivergo for years, believes the plant has been a "fantastic home" for his business. Transport companies like Aghaul Limited also rely heavily on the contract with Vivergo and fear significant knock-on effects if it is lost. Vivergo's managing director, Ben Hackett, describes the plant as a key foundation of the green economy, arguing that removing the tariff has destroyed the market for British bioethanol producers. He urges the government to provide support for bioethanol production by creating a clear framework and offering financial help during the transition. A government spokesperson says ministers are working closely with Vivergo on a plan to protect jobs and supply chains, but no concrete solutions have been announced yet.
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