Vivergo Fuels faces potential shutdown of bioethanol plant in Hull

In the United Kingdom, the Vivergo Fuels bioethanol plant in Hull is at risk of shutting down due to financial difficulties following a recent trade deal with the United States. Vivergo Fuels, the largest bioethanol producer in the UK, announced that without prompt government support, it could cease production as early as September 13, 2025. The situation has arisen primarily due to the lifting of a 19% tariff on US ethanol imports, which has made it increasingly difficult for Vivergo to compete with subsidized American products. The company stated that it has begun consultations with its staff about potential closure due to these ongoing uncertainties and expressed the urgent need for government intervention. The company has also highlighted the strategic importance of a domestic bioethanol supply, emphasizing that the government has engaged in formal negotiations to find a sustainable solution. It is essential for Vivergo, owned by Associated British Foods, not to incur further financial losses. The negotiating talks with the government represent a glimmer of hope for the future of the bioethanol industry in the UK, which is seen as a key component in sustainable aviation fuel development. However, the outcome of these negotiations remains uncertain, which has prompted the company to consult with employees while signaling the urgency of securing financial support to maintain operations. Additionally, Vivergo Fuels has sustained significant investment in bioethanol production, capable of generating up to 420 million liters from UK-sourced wheat. The firm argues that it plays a critical role in reducing emissions from gasoline products and fostering a sustainable aviation fuel market. They have recently signed a memorandum of understanding with Meld Energy to establish a sustainable aviation fuel facility at their site, reinforcing their commitment to create a clean fuel cluster in Hull. The potential benefits for the local economy and the environment underscore the importance of the negotiations between Vivergo and the UK government. As of the latest announcements, the government has expressed its recognition of the concerns faced by Vivergo and has committed to exploring ways to assist the bioethanol sector. Meetings between industry representatives and officials from various departments have been ongoing in an effort to find solutions that preserve jobs and ensure that the supply chain is not disrupted. However, the pressure continues to mount as stakeholders await a decisive government plan to support the struggling bioethanol industry, which has been encountering challenges for an extended period. Without swift action, the future of the Vivergo Fuels plant hangs in the balance, affecting not only jobs but also the broader biofuels market in the UK.