Vivergo bioethanol plant halts production, set for demolition by year-end

Plant Closure and Job Losses

Vivergo, one of only two UK bioethanol plants, halted production and began laying off its 160 employees on Tuesday. The government declined to provide financial support after negotiating with ministers for weeks. The UK’s move to remove 19% tariffs on imported US ethanol has left the plant with unsustainable losses. Vivergo, owned by Associated British Foods, said all staff would depart and the Hull site would be ready for demolition by year-end.

Trade Deal Fuels Competition

Bioethanol, produced from grains or waste oils, is an additive in E5 and E10 petrol and sustainable aviation fuel to lower emissions. In May, the UK struck a trade agreement with the US, eliminating tariffs on up to 1.4 billion litres of imported ethanol—roughly the size of the domestic market. UK producers argue US imports enjoy a cost advantage by classifying ethanol as a waste byproduct.

Wider Industry Impact

Vivergo warned of knock-on effects for UK farmers supplying non-food-grade wheat and for firms relying on CO2, a byproduct of ethanol production used in food, healthcare and industry. Ben Hackett, Vivergo’s managing director, described the closure as a "massive blow to Hull and the Humber" and branded the decision "economic self-harm."

Andrew Symes, chief executive of sustainable aviation fuel producer OXCCU, warned on the INLIBER Today programme that the UK will become "reliant on imports for CO2 and ethanol," a situation he deemed risky.

Government sources said the decision was made "in the national interest," noting the trade deal protected jobs in auto and aerospace. They pledged to support companies through the shutdown and work on proposals to secure long-term CO2 supply.

GMB National Officer Charlotte Brumpton-Childs called for a stronger commitment to green jobs: "A clean energy strategy means nothing if we can’t protect plants long enough to deliver jobs in the UK."

The decision to close Vivergo underlines the risks of relying on imported bioethanol and CO2, dealing a blow to UK’s green energy ambitions and local economies.

This topic was reported by BBC News.

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