Vivergo Fuels Plant Closure: Workers in Limbo
## bioethanol Plant Faces Closure as US Tariff Decision Threatens UK Green Economy
The future of the Vivergo Fuels plant on the north bank of the Humber is hanging in the balance, with the company warning it could be forced to close unless the government intervenes. The crisis stems from a decision to remove tariffs on US bioethanol imports,which has dramatically undermined the UK market for domestically produced fuel.
Vivego/ PA Media### A Key Pillar of the Green Economy at Risk
Ben Hackett, Managing Director of Vivergo, paints a stark picture. He describes the plant not just as a business, but as a “key foundation on the whole green economy.” Vivergo converts feed wheat into bioethanol, a renewable fuel source used in petrol, and high-protein animal feed. Its operation supports British farmers and reduces reliance on imported fossil fuels.
However, the removal of the tariff on US bioethanol has fundamentally altered the playing field. “The customers have gone overnight,” Hackett explains. “That’s given us a real crisis. We cannot afford to operate this facility as a loss.” The influx of cheaper, US-produced bioethanol has made it impossible for Vivergo to compete, jeopardizing hundreds of jobs and the livelihoods of farmers who supply the plant with wheat.The situation is so critical that Vivergo has already informed growers it can only honour existing wheat purchase contracts while the uncertainty persists. This creates a ripple effect, impacting the wider agricultural sector.
### Urgent Calls for Government Support
Hackett is urgently calling on the government to provide support for the bioethanol industry. He advocates for a clear, long-term framework to boost demand for domestically produced bioethanol, alongside immediate financial assistance to help Vivergo navigate this transition period.
“We are weeks at most away from Associated British Foods having to make a decision on the viability of the business,” Hackett warns. “This site could very well close unless the government takes action.” The potential closure represents a significant setback for the UK’s commitment to renewable energy and a blow to the rural economy.
### Government Response and Ongoing Discussions
A government spokesperson acknowledged the ”significant challenges” facing the bioethanol industry, stating that ministers are actively working with Vivergo to protect jobs and the supply chain.
“Engagement with the companies continued ‘at pace’ and external consultants had been brought in to help,” the spokesperson confirmed. They also revealed that formal discussions regarding potential financial support began last month, recognizing the “concerning time” for workers and their families.
The government remains “committed to working closely with them throughout this period to present a plan for a way forward that protects supply chains, jobs and livelihoods.” However,the clock is ticking,and the future of Vivergo – and a vital piece of the UK’s green infrastructure – remains uncertain. The situation highlights the delicate balance between free trade and protecting strategically vital domestic industries, particularly those aligned with environmental goals.