The UK's largest bioethanol plant has received its final scheduled wheat delivery as crisis talks with the Government continue to prevent its closure. Vivergo Fuels, near Hull, faces shutdown within weeks following the decision to end the 19 per cent tariff on American bioethanol imports as part of the recent UK-US trade deal.
The plant purchases more than a million tonnes of British wheat annually from over 4,000 farms and has bought from 12,000 individual farms over the past decade. Managing director Ben Hackett wrote to growers earlier this year explaining the plant could only honour existing contractual obligations for wheat purchases while uncertainty continues.
Final wheat delivery arrives
Mr Hackett confirmed the last scheduled load arrived at the plant on Friday. Farmer Matt Pickering, of Pickering and Sons near Gainsborough, Lincolnshire, sold the final wheat delivery to Vivergo.
"We struggle with the quality of our land type, so we tend to go for out-and-out bulk volume shed fillers," Mr Pickering said. "Vivergo has been a fantastic home for us to sell feed wheat into."
Staff consultation begins
Last month, Vivergo, owned by Associated British Foods (ABF), began consultation with staff to wind down the plant, which employs more than 160 people. Production could stop before 13th September if Government support is not provided.
Britain's two largest bioethanol producers - Vivergo and Ensus in Teesside - are now in urgent negotiations with the Government. The firms say the UK-US trade deal and regulatory constraints have made it impossible to compete with heavily subsidised American products.
Government support crucial
"We have a choice of going down a path of stagnation, decline, unemployment, economy shrinking, or we have a choice of going towards a path of investment, growth, prosperity, job creation," Mr Hackett said on Friday. "That's why it's crucially important that the Government comes to a decision quickly, and comes to a decision in favour of supporting the UK bioethanol industry."
Mike Green, owner of haulage company AgHaul, who transported the last load to the plant, expressed concern about the uncertainty. "We're in the dark. We don't know where we're going," he said.
Green fuel project threatened
The uncertainty is also jeopardising plans for a "world-class" green jet fuel project on the Humber. Earlier this year, Meld Energy signed a £1.25 billion agreement with Vivergo Fuels to anchor a Sustainable Aviation Fuel (SAF) facility at Saltend Chemicals Park in Hull.
Meld Energy chief executive Chris Smith said the company was excited about bringing the sustainable aviation fuel project to the Humber. "But, for projects like ours to succeed and the flow of vital investment to be forthcoming, we need a strong and integrated low-carbon ecosystem," he said.
Alternative locations considered
"A bioethanol plant on site at Saltend is a critical part of that mix," Smith added. "Without it, we'd have to consider alternative locations overseas where that infrastructure is already in place."
A Government spokesperson acknowledged this was "a concerning time for workers and their families" and confirmed formal discussions on potential financial support began last month. "We will continue to take proactive steps to address the long-standing challenges the company faces and remain committed to working closely with them throughout this period," they said.
The Government said officials and ministers have met consistently with Vivergo and Ensus over recent months to discuss options addressing "significant challenges" facing the bioethanol industry. Engagement with the companies "continues at pace" and external consultants have been brought in to help.
(PA) Note: This article has been edited with the help of Artificial Intelligence.
