‘We desperately need the Government to act swiftly and decisively’ the site’s Managing Director has said
The Government has been warned it has less than a week to save Britain’s bioethanol industry. Hull-based Vivergo Fuels, the largest bioethanol producer in the country, has told ministers that it needs a decision over its future from the Government by next Monday (August 18) or else it will be forced to start the irreversible process of closing on that day.
Vivergo and other bioethanol firms point to the US-UK trade deal which removed a 19 per cent tariff on ethanol products imported from the US. The firms say that without the tariff, they are now unable to compete with the American imports which are cheaper and less regulated.
The firm has been sounding the alarm in the over 100 days since Prime Minister Sir Keir Starmer and his US counterpart, President Donald Trump announced the deal. With the future of the site at serious risk, at the beginning of August Vivergo received its final scheduled wheat delivery.
Bosses from the Ensus plant in Redcar, the other major bioethanol producer in the UK, joined Vivergo’s leadership in writing to Sir Keir in May warning him their plants would close without immediate Government action as the deal rendered their businesses “commercially unviable”. The trade agreement introduced a tariff-free quota of 1.4 billion litres, allowing US firms to sell their heavily subsidised ethanol into the British market, without the tariff which was originally levied to help British producers compete on a more level playing field.
The tariff-free quota introduced by the deal represents the entire size of the UK market. According to the latest available UK Government figures, demand was equivalent to 1.406 billion litres in 2023.
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In recent weeks Vivergo has also teamed up with its fellow Saltend Chemicals Park firms in calling for Government intervention. The firms warned that the closure of Vivergo would hit the others at the Park as it operates as an integrated bloc.
The firm has also been backed by local politicians from across the political spectrum. Local leaders representing the Labour Party, Conservatives, Liberal Democrats, and Reform UK alike have all been backing Vivergo’s efforts.
Ben Hackett, Managing Director of Vivergo Fuels said: “This is a challenging and unsettling time for the workers at Vivergo. Colleagues have faced months of uncertainty since the Trump trade deal was announced and it is taking its toll.
“My staff have shown incredible resilience throughout this ordeal but everyone has their limit. We desperately need the Government to act swiftly and decisively to deliver the certainty we need to continue production and save jobs.”
Geoff Holmes, CEO of px Group, who own Saltend Chemicals Park, said: “Saltend is one of the UK’s four major chemical clusters and is set to contribute £24.2 billion to the economy of Hull and the wider UK by 2050, which could increase to £50 billion through potential growth and investments. Vivergo plays a vital role at the heart of this site and helps unlock the full scale of Saltend’s future growth potential as a future fuels hub. We urge the Government to consider the impact on the wider chemicals industry as it looks at options to secure the future of British bioethanol production.”
In response to the warning of the potential collapse of the British bioethanol industry, a Government spokesperson said: “We know this is a concerning time for workers and their families which is why we entered into formal discussions with the company on potential financial support in June. We have engaged with the company and industry extensively since then. We will continue to take proactive steps to address the long-standing challenges it faces and remain committed to a way forward that protects supply chains, jobs and livelihoods.”