'We did everything we possibly could to avoid closure'

VIVERGO WILL HAVE CEASED PRODUCTION OF BIOETHANOL AND ANIMAL FEED BY AUGUST 31

- By ANDREW SPENCE

ASSOCIATED British Foods (ABF) has the announced closure of Vivergo Fuels, its UK bioethanol production plant in Hull.

The news comes after the Government decided to not directly fund the bioethanol industry which they say would not be “would not provide value for the taxpayer”.

The UK’s bioethanol industry, of which Vivergo is the largest producer, was plunged into uncertainty following the US-UK trade deal which removed a 19 per cent tariff on ethanol imports coming in from the US. Vivergo warned they would be unable to compete with the cheaper, and less regulated imports without the tariff.

In a statement, ABF said: "The decision to close the plant follows extensive discussions with the Government to find a regulatory and financial solution that would enable Vivergo to operate on a profitable and sustainable basis.

"These discussions were necessary because Vivergo’s commercial viability was undermined by the way in which UK regulations were being applied to favour foreign producers, an issue subsequently made much worse by the Government's decision in May to remove the tariffs on US bioethanol coming into the UK market.