Vivergo Fuels faces closure after last wheat delivery amid trade deal fallout
- Vivergo Fuels, the UK's largest bioethanol plant, is in crisis talks with the Government due to the threat of closure.
- Its last scheduled wheat delivery was received as management warns of potential shutdown amid reduced tariffs on American imports.
- Government consultations are ongoing to seek financial support for the bioethanol industry to avert job losses and economic decline.
In the United Kingdom, Vivergo Fuels, the largest bioethanol plant, announced it received its last scheduled wheat delivery as it approached a potential shutdown. This decision comes shortly after a UK-US trade agreement eliminated the 19% tariff on American bioethanol imports, creating significant challenges for Vivergo and other domestic producers. Over 4,000 British farms supply Vivergo with more than a million tonnes of wheat annually, and the plant's management expressed concern about its viability. The uncertainty has resulted in job security threats for over 160 employees and prompted consultations about winding down operations as the deadline for closure looms in early September. The plant's struggle reflects broader issues within the UK bioethanol industry, particularly increased competition from subsidized American products. Fellow UK bioethanol producer, Ensus, is also negotiating with the Government to address these challenges. Vivergo's Managing Director, Ben Hackett, emphasized the need for government support to avoid a decline in the industry and economic stagnation. Amid these discussions, interested parties like Meld Energy worry that the instability surrounding Vivergo could jeopardize their plans for sustainable aviation fuel projects in the area. The Government has recognized the seriousness of the situation and is in ongoing talks with Vivergo and Ensus, exploring potential financial assistance to safeguard supply chains and jobs in the sector.