The future of the UK’s largest bioethanol plant, Vivergo Fuels near Hull, hangs precariously in the balance as it receives what could be its final scheduled wheat delivery amidst ongoing crisis talks with the government.

This critical situation stems directly from the recent UK-US trade agreement, which controversially removed the 19% tariff on American bioethanol imports, immediately placing domestic producers at a significant competitive disadvantage.

Vivergo Fuels is a cornerstone of UK agriculture, annually purchasing over a million tonnes of British wheat from more than 4,000 farms, having supported 12,000 individual farms over the last decade, highlighting its vital role in the rural economy.

Managing director Ben Hackett had previously communicated to growers that the plant could only honor existing contractual obligations for wheat purchases, a stark reality reflecting the profound uncertainty gripping the bioethanol industry.

Both Vivergo and Ensus, Britain’s two primary bioethanol producers, are now engaged in urgent negotiations with the Government, asserting that the new trade deal combined with existing regulatory burdens make fair competition with heavily subsidised American products impossible, threatening the entire UK economy.

Mr. Hackett emphasized the stark choice ahead: “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, and 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.” This underscores the critical need for decisive government support and a coherent trade policy.

The ripple effects are already being felt across the supply chain, with local farmers like Mr. Pickering lamenting the potential loss of a reliable market for their feed wheat, while haulage company owner Mike Green expressed deep uncertainty about the future of transport operations, showcasing the widespread agricultural impact.

The plant’s closure would also jeopardize significant future investments, including Meld Energy’s £1.25 billion agreement with Vivergo Fuels to establish a Sustainable Aviation Fuel (SAF) facility, a crucial component for renewable energy initiatives, which relies heavily on the existing bioethanol infrastructure.

A government spokesperson acknowledged the concerning situation, confirming formal discussions with Vivergo on potential financial support have been ongoing for over a month, recognizing the significant challenges facing the bioethanol sector.