Mayor Luke Campbell has visited the UK’s largest bioethanol plant amidst fears the plant may have to shut down within days.
The Vivergo Fuels plant at Saltend Chemicals Park, east of Hull, is the largest of its kind in the UK, however the plant’s owners have warned that without government intervention it will be forced to close down.
Vivergo Fuels say that the US-UK trade deal announced last month will be disastrous for the UK’s bioethanol industry as the deal includes the removal of a 19 per cent tariff on ethanol imports from the US.
The Managing Director of Vivergo Fuels, Ben Hackett told the LDRS that Vivergo, and other UK firms, will not be able to compete with the US imports without the 19 per cent tariff. Mr Hackett explained that US bioethanol companies use genetically modified crops and have lower operational costs that their British counterparts, such as Vivergo. He therefore explained that the imposed tariff “was to level the playing field” rather than giving UK companies an advantage.
Vivergo Fuels have been campaigning for weeks hoping for government action, this include workers from the site visited Parliament earlier this week to speak to local MPs. Mr Hackett admits that a full reversal of the tariff removal is unlikely, saying “we’d have to be naive to expect the government to rescind the deal,” but he hopes the government will find ways to support the British bioethanol industry.
To show support for the campaign, the Mayor of Hull and East Yorkshire, Luke Campbell, met with Mr Hackett and received a tour of the site. Mr Campbell said “it’s madness that we even have to have this conversation,” and went on to describe the US-UK trade deal as “a bad deal for British industry.”
Mr Campbell told the LDRS that the closure of the Saltend plant would be “detrimental for the area” and called upon the government to support the UK’s bioethanol industry.
Bioethanol is a renewable alternative to fuels such as petrol and diesel. Mr Hackett has previously said: “Vivergo Fuels is key to decarbonising UK transport for decades to come, and securing the green industrial future of this region.”
As a Reform UK Mayor, Mr Campbell stands for a political party that seeks to scrap net zero targets and block renewable developments. Mr Campbell was therefore asked if Vivergo Fuels being forced to shut down would actually be in the interests of Reform UK. In response, Mr Campbell stated that “the party is all about protecting British industries.”
Reform UK’s leader, Nigel Farage has insisted that if his party wins the next General Election, net-zero targets will be abolished and renewable energy subsidies would be scrapped. The LDRS seeked assurance from Mr Campbell that if Reform UK take power at the next election, green jobs in Hull and East Yorkshire would be secure. He said that this was “ifs and buts, that’s four years down the line.” Mr Campbell instead wanted to focus on what he could do in this moment to help protect jobs at Vivergo Fuels.
In response to Vivergo Fuels’ concerns, a 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
