Latest news with #Saltend
BBC News
5 days ago
- Business
- BBC News
'One week' to safeguard jobs at Vivergo biofuel plant, boss warns
Bosses at the UK's largest bioethanol plant say they will be forced to begin consulting on redundancies within the next week unless the government steps British Foods (ABF) said it was in talks with the government to help save its Vivergo Fuels site at Saltend, near Hull, after the removal of a 19% tariff on imports of ethanol from the Sugar chief executive Paul Kenward said it meant that the government had "given away the entre UK market for bioethanol". A government spokesperson said it was working closely with the industry to find a way forward. Speaking to BBC Radio Four, Mr Kenward said there was "a lot at stake".He said the industry was not asking for a "permanent subsidy", but needed "some bridging support from government until some simple common sense changes to regulation can be made".Mr Kenward said representatives from the industry had met with government officials, including Business Secretary Jonathan Reynolds."Unfortunately, we gave a deadline which was the 15th [June]."They asked us to wait for another week – we gave them two – but if we don't hear back from them by 25 June we will have to start a consultation process, which may lead to redundancies," he Kenward's comments follow a similar announcement earlier this week by bosses at Ensus's Redcar bioethanol chairman Grant Pearson said the government needed to come up with a "urgent" solution to save skilled jobs in the region. In response, a government spokesperson said: "The deal agreed with the US will save thousands of jobs in the UK, and we will always act in the national interest."A meeting took place last week with representatives from the bioethanol industry "to discuss their concerns", the spokesperson Saltend plant produces bioethanol which is used in E10 petrol.E10 was introduced in 2021 to help cut carbon emissions and contains up to 10% also produces animal feed, which is a by-product of the bioethanol production process. Listen to highlights from Hull and East Yorkshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here.
BBC News
28-05-2025
- Business
- BBC News
Saltend biofuel plant 'faces closure after US trade deal'
The UK's largest bioethanol plant will be forced to close unless the government acts, according to its April, Associated British Foods (ABF) said it was in talks with the government to help save its Vivergo Fuels site at Saltend, near Hull, after being forced to cut production levels due to low bioethanol Tuesday, Vivergo said the removal of a 19% tariff on US ethanol imports, which was part of the recent UK-US trade deal, was the "final blow".A government spokesperson said it was working closely with the industry to understand the impacts of the trade deal and it was open to discussions over potential support. Urgent action needed In a letter to farmers, Vivergo managing director Ben Hackett said: "Unfortunately, if there is no government intervention in the next few weeks, our plant will have to close."That is because the government has made a series of decisions that undercut UK ethanol production in favour of US imports. The most recent trade deal was the final blow."If there is no government intervention, we will not be able to purchase any more wheat outside our current, limited, commercial commitments."The firm said that without urgent action, the plant, which employs more than 160 people, would no longer be viable and its wheat purchases would Hackett added: "This is avertable. If the government provides sufficient policy certainty to us in the long term and ameliorates the effects of their decisions in the short term, we can continue to operate and expand production."But so far, they have made no commitments." Earlier this month, Business Secretary Jonathan Reynolds met representatives of ABF and the country's other key bioethanol producer, Ensus UK, which is based in firms said the the secretary of state agreed on the need for "urgent next steps" to protect the UK's bioethanol industry and had committed to act within "days, not weeks" amid concerns that hundreds of jobs could be at Hackett said: "So far, nothing has been forthcoming."However, he added: "We still believe this situation can be turned around – but time is rapidly running out."In response, a government spokesperson said: "We signed a deal with the US in the national interest to secure thousands of jobs across key sectors."We are now working closely with the industry to understand the impacts of the UK-US trade deal on the UK's two bioethanol companies and are open to discussion over potential options for support."The Saltend plant produces bioethanol which is used in E10 petrol.E10, which was introduced in 2021 to help cut carbon emissions, contains up to 10% also produces animal feed, which is a by-product of the bioethanol production process. Listen to highlights from Hull and East Yorkshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here.
