Local politicians have reacted to the “devastating” news that the UK’s largest bioethanol plant, the Hull-based Vivergo Fuels is set to close. The closure was announced on Friday (August 15) following news that the Government would not be intervening to save the industry.
The US-UK trade deal announced earlier in the year was cause for serious concern for Britain’s domestic bioethanol firms as the agreement included the removal of an existing 19 per cent tariff on ethanol products imported from the United States. Domestic firms such as Vivergo Fuels and the Redcar based Ensus warned that they would not be able to compete with the cheaper products from the US without the tariff.
Seeking Government intervention to save their industry, Vivergo put its efforts into campaigning alongside other businesses and local politicians. However, following last week’s announcement that the Government will not be intervening, the firm promptly announced a ‘closure process’ was beginning. In a statement, Vivergo’s owners Associated British Foods (ABF) stated: “Vivergo will have ceased all production of bioethanol and animal feed by 31 August 2025.”
The Government said it had taken the decision in the national interest, arguing that funding the industry “would not provide value for the taxpayer”. The Government’s statement also said: “We recognise this is a difficult time for the workers and their families and we will work with trade unions, local partners and the companies to support them through this process.”
Reacting to the news, the leader of Hull City Council, Cllr Mike Ross, said: “The Government is asleep at the wheel, and the result is job losses. This is a company producing clean fuel and providing decent, well-paid jobs in our region. I’m appalled but not shocked that the Government has failed to act to protect these workers.”
Cllr Ross argues that his party, the Liberal Democrats, would “stand up for British business and for local jobs and communities”. He added: “It’s a shame the other parties couldn’t be bothered to stand up for this key national asset, for the workers, or for the families impacted by these job losses.”
The Saltend Chemicals Park, where Vivergo is based, falls within Graham Stuart MP’s Beverley and Holderness constituency. The Conservative MP described the closure as “devastating news for everyone who works at Vivergo and in its supply chain”.
He added: “Vivergo was let down by Keir Starmer’s deal with Donald Trump, offering the entirety of the British bioethanol industry to the Americans. That means the loss of jobs, the loss of expertise and the loss of a foundational industry of the future.
“I applaud all Vivergo’s incredible workers who I’ve been working with over the last few months and the officials who had worked to save the plant, even if their hands were tied by the Prime Minister’s personal deal with the US.”
Meanwhile, Labour MP for Hull West and Haltemprice, Emma Hardy, said: “I know this news will be incredibly difficult for everyone who works at Vivergo, or who has a loved one affected by this decision. My thoughts are with all those impacted.
“I’ve been in touch with senior leadership at Vivergo earlier this week and I’ve spoken directly with the Minister to ask that swift and effective support will be made available to those who need it. If you live in Hull West and Haltemprice and have been impacted by this, please don’t hesitate to contact me directly. I am here to help and will do everything I can to support you during this difficult and uncertain time.”
Ben Hackett, the managing director of Vivergo, said: “We did everything we possibly could to avoid closure, but in the end it was the Government that decided the British bioethanol sector was something that could be traded away with little regard for the impact it would have on ordinary hard-working people. We did not go down without a fight and I hope that the noise we generated over the past three months will make the Government think twice before it decides to sign away whole industries as part of future trade negotiations.”
By: Andrew Spence, LDRS
