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Manufacturing

Could Government biofuel drive bring £350m Hull plant back to life?

Saltend facility was mothballed after 11 years of "inaction" over petrol pump policy

Vivergo Fuels at Saltend Chemicals Park.(Image: Reach Plc)

Hopes of a return to operations at the £350 million Vivergo biofuels plant in Hull have been stirred after the Government announced it is to look again at mandatory levels of renewables in petrol and diesel.

As part of a huge range of green initiatives underway, a consultation into a long-awaited forecourt revolution has been launched by the Department for Transport.

Whitehall officials have told how the introduction of “E10 petrol” as it is termed, “could cut overall transport emissions and help us reach our #NetZero target”.

Using 10 per cent biofuels across the º£½ÇÊÓÆµ would equate to taking 350,000 cars off the road, and twinned with the high-growth electric vehicle industry is seen as a way of easing the burden created on the roads.

A general view of the Vivergo Fuels plant at Saltend Chemical Park.(Image: srenilson)

Vivergo, an employer of 150 at Saltend Chemicals Park, closed in September 2018, with only a skeleton maintenance team remaining. 

The sprawling plant, owned by AB Sugar, had operated for 11 years, with intermittent periods of production halting. Fingers were pointed over “government inaction” when the tanks ran dry.

Dr Mark Carr, group chief executive at AB Sugar, said: “The launch of the E10 consultation today has not changed our position on the operation of our Vivergo plant. Having said that, at the point of closing production we based this on three factors: the ethanol price, the input (wheat) price and certainty of future demand determined by the mandating of E10.

“Any decision to reopen would need to consider the market conditions at the time and these three factors would need to be met. The mandating of E10 is crucial to driving market demand, and only once this is in place can we consider reopening alongside the other two factors.”