The British Chambers of Commerce (BCC) have urged the Government to act swiftly to protect the UK’s bioethanol industry amidst fears Vivergo Fuels’ Saltend plant could be forced to close.
The plant, which is located at the Saltend Chemicals Park, near Hull, is the UK’s largest bioethanol producer. In recent days Vivergo Fuels has called for government action to protect the UK’s bioethanol industry as the company says the recently agreed UK-US trade deal could lead to its collapse due to the removal of a 19% tariff on bioethanol imports from the United States.
Vivergo Fuels claims to support over 4,000 jobs either through direct employment or through its wider supply chain, a figure that includes 160 jobs at the Saltend plant.
Bioethanol is used as a plant-based renewable alternative to the likes of petrol and diesel. The BCC’s call for action comes after Vivergo Fuels last week wrote to its supply chain partners to inform them that it will be scaling back wheat purchases from next month and simply fulfilling its contractual obligations.
The BCC say they welcome the broader benefits of the UK-US trade deal but insist that targeted support is needed to preserve thousands of jobs, maintain energy security, and uphold the UK’s transition to low-carbon fuels.
Shevaun Haviland, Director General of the British Chambers of Commerce, said: “Bioethanol production plays a vital role in the UK’s transition to clean energy and supports thousands of jobs across Teesside and the Humber.
“While the recent trade deal with the US brings opportunities for automotive and steel, it also creates challenges for our bio-economy.
“Targeted government support is needed to safeguard this sector’s future and maintain investor confidence as we work toward our environmental and economic goals.”
Later this week Vivergo Fuels will send representative to Westminster to meet with MPs in an effort to rally support.
Ben Hackett, Managing Director of Vivergo Fuels, said: “Bioethanol has a vital role to play in transport decarbonisation and clean energy development for decades to come.
“UK bioethanol production supports thousands of jobs and businesses across the supply chain, and the impacts will be keenly felt if the government does not act to support this critical industry.
“We are encouraged by the engagement we have had from ministers and now need to see those warm words matched with concrete support.”
Responding to Vivergo Fuels’ concerns Government spokesperson said: “We signed a deal with the US in the national interest to secure thousands of jobs across key sectors.
“We are now working closely with the industry to understand the impacts of the UK-US trade deal on the UK’s two bioethanol companies and are open to discussion over potential options for support.
“The Business Secretary has met members of the bioethanol sector and senior officials continue to consider what options may be available to support the impacted companies.”
By: Andrew Spence, LDRS
