Vivergo bioethanol plant near Hull faces closure after government rejects funding plea

A bioethanol plant near Hull is facing closure after the government said it would not be providing grant funding to keep it afloat.

Vivergo Fuels, which employs 160 workers at the site, says it is facing closure within weeks following the decision to end the 19% tariff on American bioethanol imports as part of the recent UK-US trade deal.

It had been in talks with the government to secure financial support but the Department for Business and Trade said on Friday it had taken the "difficult decision" not to offer funding as it would not provide value for money for the taxpayer.

A spokesperson said: "We recognise this is a difficult time for the workers and their families and we will work with trade unions, local partners and the companies to support them through this process.

"We also continue to work up proposals that ensure the resilience of our CO2 supply in the long-term in consultation with the sector."

The closure process for the plant will get underway on Monday and the first redundancies will be made on Tuesday.

Vivergo's parent company ABF said it was disappointed the media was told the decision before it was.

Ben Hackett, Managing Director of Vivergo Fuels, said: "The Government’s failure to back Vivergo has forced us to cease operations and move to closure immediately. This is a flagrant act of economic self-harm that will have far-reaching consequences.

“This is a massive blow to Hull and the Humber. We have fought from day one to support our workers and we are truly sorry that this is not the outcome any of us wanted.

"This decision by ministers will have a huge impact on our region and the thousands of livelihoods in the supply chain that rely on Vivergo, from farmers to hauliers and engineers."

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