Exclusive:Vivergo workers write to Prime Minister warning of collapse of bioethanol industry and jobs
Workers at the UK’s biggest bioethanol plant in Hull have written to the Prime Minister saying the industry and their jobs are at risk without urgent government support.
Vivergo Fuels Ltd, in Saltend, has said it will have to shut for good on August 18 unless there is rapid government intervention, following the UK’s trade deal with the US.
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 this would make the plant unviable as it would be undercut by US producers, and has opened a consultation with the 160 staff over closing the plant.
It has been in negotiations with the Government for months about a potential rescue package, however no breakthrough has been made.
Paul Kenward, the chief executive of Associated British Foods Sugar, which owns Vivergo, recently said he was not “bluffing”.
He said “the Prime Minister and his team need to get cracking”, however, as of yesterday, there was no update on any agreement from Downing Street.
Now, all Vivergo workers have written to Sir Keir, urging support to save their jobs and their industry.
“We’re proud to make homegrown fuel that helps cut carbon emissions, supports British farmers and strengthens our energy security,” they said, in a letter published in The Yorkshire Post.
“But today, our future is hanging by a thread. Our plant can produce up to 420m litres of biofuel from renewable sources a year by converting one million tonnes of non-food grade British wheat into bioethanol.
“This wheat is sourced from thousands of farms – mostly across Yorkshire and Lincolnshire.”
Earlier this month, Vivergo received its final wheat delivery ahead of next week’s potential closure.
Bioethanol uses farmers’ leftover wheat that is not good enough to make bread, purchasing more than one million tonnes a year.
It comes as the UK cereals price has dropped by almost 10 per cent since the start of May.
The workers’ letter continued: “Our jobs are highly skilled and our plant supports thousands of livelihoods all along the supply chain, from farmers to hauliers, engineers to scaffolders.
“Unless your government acts now, production will stop. A vital industry will shut down and be lost.
“And yet, the opportunity ahead is huge. With the right support, Salt End can become a global hub for future fuels.
“This isn’t just about numbers on a spreadsheet, be that increased growth or lower emissions. It’s about human potential. It’s about pride in work. It’s about places like Hull.”
While the National Farmers’ Union said the potential closure would have a wide impact on the agricultural sector.
The NFU’s Jamie Burrows commented: “Not only are there huge implications for those growers that currently supply Vivergo in losing a vital market for their product, but this also has the potential to put further downward pressures on farmgate prices at a time when our arable farmers are already facing huge challenges including extreme weather and ongoing market volatility.”
When asked about a potential bailout, the Prime Minister’s official spokesman said: “The Department of Business and Trade are in close contact with the company.
“We continued to work with them on the situation. We signed a trade deal with the United States that protects thousands of jobs and has been widely welcomed.
“When it comes to the individual company, we continue to work with them on the situation.”