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Vivergo announces bioethanol plant closure

Sat 08 September 2018 | Back to news list

Vivergo, the UK's biggest producer of bioethanol has announced it will stop production at its plant near Hull in East Yorkshire. The company has been buying large quantities of wheat from farms in northern England and directly employs 150 people. 

Vivergo, which says it supports the jobs of around 3,000 people, said that the decision was a result of the 'difficult trading environment' and uncertainty about legislation and requirements around the use of more bioethanol in petrol. 

A part of Associated British Foods, the company said it had invested heavily in its Hull plant based on the expectation that the Government would introduce new rules around the uptake of bioethanol, in particular the adoption of E10 (10% ethanol in petrol mix).

The company's Managing Director Mark Chesworth (reported by the BBC) said: "I am extremely disappointed at having to make this difficult choice".

"But sadly, the government's lack of pace over the past decade to introduce E10 has further undermined our ability to operate".

LowCVP Managing Director Andy Eastlake added “This closure is a real blow for UK jobs, climate and energy security. The rapid transition to E10 (with suitable support for the few incompatible vehicles) is vital if we are to meet the 2020 RED and RTFO targets. We fully support the initiatives for ULEVs and ZEVs but with 60% of cars on the road (over 19million and rising) running on petrol, a lower carbon fuel has the most immediate impact”

The LowCVP recently expanded on its view on the introduction of E10 alongside the Government's consultation announcement (see link). 

For more details on the Department for Transport's current consultation see this link.

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