The UK’s largest bioethanol facility, Vivergo Fuels in Hull, will commence operations closure on Monday after the government opted not to extend a financial rescue package to the sector. Associated British Foods, which owns Vivergo, announced that the first round of employee redundancies would take effect on Tuesday.
Both Vivergo Fuels and Ensus, the owner of the UK’s second-largest bioethanol plant located in Redcar, had previously signaled that their operations could become unsustainable without government intervention. This warning follows a trade agreement between the US and UK that lifted a 19% tariff on US ethanol imports for up to 1.4 billion liters, a move that has been cited as detrimental to the financial viability of these UK facilities.
The UK government stated that it had engaged closely with these companies since June about their financial challenges but concluded that providing taxpayer funding was not in the national interest. It noted that its decision was based on the belief that direct funding would not address the long-term issues facing the industry.
The closures are expected to directly impact around 270 jobs at the two plants, while potentially affecting thousands more in related supply chains. In response to the closures, trade unions have expressed concerns about the impact on workers and communities, emphasizing the need for a sustainable industrial strategy in clean energy.
Bioethanol production, which involves using agricultural products such as wheat and sugar beet, is a crucial component of the UK’s fuel mixture for transportation. The government aims for sustainable sources to comprise 10% of fuel used in aviation by 2030. The bioethanol industry also plays a significant role in supporting UK agriculture and the supply chain for commercial carbon dioxide, an essential input for various industries.
Source: https://www.bbc.com/news/articles/c24zlel2y5yo?at_medium=RSS&at_campaign=rss