Mon, 18 Aug 2025

Mon, 18 Aug 2025 Bioethanol plant begins shut-down process

Hull-based Vivergo says all staff will have left and the site will be ready for demolition by the end of the year.
Vivergo, a UK bioethanol plant owned by Associated British Foods, has ceased production and will begin laying off its 160 employees on Tuesday. The decision comes after weeks of talks with the government, which announced it would not provide financial support for the bioethanol sector due to increased competition from imported US ethanol. Vivergo had been operating at a loss, but said that without support, continuing to operate would have meant continued losses. The plant will be demolished by the end of the year. The closure is seen as a major blow to the local community in Hull and the Humber region. Bioethanol produced at Vivergo was used as an additive to fuels to reduce climate-damaging emissions. The UK's decision not to provide support for the sector has been criticized by industry leaders, who argue that it will lead to a reliance on imports and put jobs at risk. The government claims its decision is in the national interest and that the tariff deal with the US has protected hundreds of thousands of jobs in sectors like auto and aerospace. However, critics argue that the decision will have a significant impact on the local economy and the environment. Staff at Vivergo are set to lose their jobs, while suppliers and customers are also likely to be affected by the closure. Industry leaders are warning of a crisis point for the site near Hull, which is home to several major companies. The closure of Vivergo raises concerns about the long-term viability of the bioethanol sector in the UK and the impact on the environment.
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