Meld Energy warns UK bioethanol plant threatens £1.25 billion jet fuel project

In the United Kingdom, the country's largest bioethanol plant, Vivergo Fuels located in Hull, is in critical negotiations with the Government regarding its future following significant changes in the UK's trade agreements. The UK-US trade deal recently removed tariffs on American bioethanol imports, which has created competitive challenges for local bioethanol producers like Vivergo Fuels. Meld Energy, which recently signed a massive £1.25 billion agreement with Vivergo Fuels to establish a Sustainable Aviation Fuel (SAF) facility in Saltend Chemicals Park, announced that without the Vivergo plant's continued operation, their project is at risk of relocating overseas where infrastructure for such projects already exists. As Vivergo Fuels grapples with uncertainty about its viability, immediate crisis talks have been initiated with government representatives in hopes of securing financial support for the plant that is essential for sustaining future fuel clusters in the region. This situation not only endangers potential green jobs but could also lead to significant economic losses for the area reliant on the plant's operations. The urgency of this matter has increased as Vivergo Fuels prepares for a possible shutdown, which could happen before mid-September if governmental assistance is not provided. Officials from the Government have acknowledged the pressing difficulties the bioethanol industry is facing and have committed to working collaboratively with Vivergo Fuels and other producers to explore viable solutions that could safeguard jobs, investment, and the supply chain. As these discussions evolve, both Vivergo Fuels and Ensus in Teesside are engaged in urgent negotiations, reflecting a broader concern for the British bioethanol landscape amid ongoing challenges posed by international competition. The key priority is to nurture a resilient low-carbon ecosystem in the UK, which was severely impacted by recent trade agreements.