Exclusive:Vivergo bioethanol plant warns farmers about closure risks

The agreement included a UK concession to cut British tariffs on US ethanol, which is used to produce beer and as a fuel additive, from 19 per cent to 0 per cent.

Vivergo said the plant would be unviable as it would be undercut by US producers, and has opened a consultation with staff over closing the plant.

It has also entered negotiations with the Government about a potential rescue package.

There will be a wider impact on the agricultural sector from the collapse of the industry, as bioethanol is a petrol substitute that is made from farmers’ wheat that is not good enough to be used to make bread.

In a letter to farmers, seen by The Yorkshire Post, managing director Ben Hackett said: “Our clear aim is to find a solution that keeps Vivergo operating.

“We’re focused on protecting our factory, our people, and our suppliers - including the farming community we’ve worked closely with for over a decade.

“We’re engaging seriously with government to try to resolve this, and we’re making the strongest possible case for the future of British bioethanol.

“But we need to be clear: if government is not able to step in during these negotiations to fix a problem caused by its own trade and policy decisions, there is a real risk that Vivergo will be forced to close. We are doing everything we can to avoid that outcome.

“We know that closure would have a knock-on effect for you. Vivergo is the UK’s largest wheat tip and we’ve built strong, long-term relationships with farms across Yorkshire, Lincolnshire and beyond.”