Council leaders in Hull and East Yorkshire have warned of potential job losses at a Saltend plant in a letter sent to two Government ministers.
Both Cllr Mike Ross and Cllr Anne Handley, the leaders of Hull City Council and East Riding of Yorkshire Council respectively, have penned a letter addressed to the Business Secretary, Jonathan Reynolds MP, and Heidi Alexander MP, the Transport Secretary, in which they call for strong Government support for Vivergo Fuels ahead of the launch of the national Industrial Strategy.
Vivergo Fuels is the UK’s largest producer of bioethanol – however, the company’s leaders fear its site at Saltend Chemicals Park may soon be forced to close down following the US-UK trade deal that was first announced in May. The company says that the deal puts the future of the British bioethanol industry under threat due to the removal of the 19 per cent tariff on ethanol imports from the United States.
The Vivergo plant supports more than 160 skilled jobs directly and around 4,000 more in the supply chain.
The council leaders’ letter says: “The Humber has gained a deserved reputation as a beacon for renewable energy development and production and we are working extremely hard to attract further investment to the region in emerging technologies. such as hydrogen and sustainable aviation fuel.
“Allowing the closure of the Vivergo Fuels plant would send a hugely damaging signal to clean energy investors and to any businesses who are considering investing in this region and across the UK.
(Image: Donna Clifford/HullLive)
“The Government has identified clean energy as one of its priority industries and states that its number one focus is encouraging growth, so we now need to see that rhetoric matched with concrete actions and support.”
Ben Hackett, managing director of Vivergo Fuels, added: “Vivergo Fuels is a fantastic asset to Hull and East Yorkshire. Not only do we employ a highly skilled workforce and support thousands more jobs in the supply chain, we are a catalyst for further green industrial development and investment which would allow the fuels of the future to be pioneered right here on the Humber.
“We are simply asking the Government for measures that will allow UK ethanol producers to remain competitive in the face of US imports, which benefit from a range of advantages from genetically modified crops to cheaper energy costs.
“We now need to see concrete commitments from ministers in the coming days to safeguard jobs, and protect against the loss of significant investment in the people of this region.”
In response, a Government spokesperson said: “We are working closely across Government and the bioethanol industry to find a way forward after the Business and Transport Secretaries met with representatives from the sector earlier this month to discuss their concerns.”
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