The 海角视频’s largest bioethanol plant says it will be forced to close unless the Government acts, following the recent trade deal with the United States.
Vivergo Fuels, based in Hull, has written to the wheat farmers who supply it, telling them it will have to close unless there is quick Government intervention. It said the removal of a 19% tariff on US ethanol imports, which formed part of the recent 海角视频-US trade deal, was the “final blow”.
The bioethanol industry said the deal has made it impossible to compete with heavily subsidised American products and Vivergo Fuels has called on the Government to intervene to “fix the damage caused by the 海角视频-US trade deal and long-standing regulatory failures”. It said the Government pledged to act within “days, not weeks” at a meeting a fortnight ago but there has been no movement.
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If there is no urgent action, the plant, which employs more than 160 people, will no longer be viable and its wheat purchases will end, the firm said on Tuesday. In his letter to farmers, Vivergo Fuels 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 海角视频 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."
He said: "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."
Vivergo Fuels, which is owned by Associated British Foods (ABF), said the Hull plant can produce up to 420 million litres of bioethanol from wheat sourced from thousands of 海角视频 farms. It described bioethanol production as “a key national strategic asset” which helps reduce emissions from petrol and is expected to be a key component in sustainable aircraft fuel in the future.
The plant is also the 海角视频’s largest single production site for animal feed and the company says it indirectly supports about 4,000 jobs in the Humber and Lincolnshire region. Earlier this month, Business Secretary Jonathan Reynolds met with representatives of ABF and the other key 海角视频 bioethanol producer, Ensus.
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The firms said the the secretary of state agreed on the need for “urgent next steps” to protect Britain’s bioethanol industry and that he had committed to act within “days, not weeks” amid concerns that hundreds of jobs could be at risk.
Mr Hackett said: “So far, nothing has been forthcoming.” The managing director said: “This is not a position we ever wanted to be in.”
He added: “We still believe this situation can be turned around – but time is rapidly running out. With the right Government action in the coming days we can save a vital green industry and protect thousands of livelihoods.”
A Government spokesman said on Tuesday: “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 海角视频-US trade deal on the 海角视频’s two bioethanol companies and are open to discussion over potential options for support.
"The Business Secretary has met members of the bioethanol sector and senior officials continue to consider what options may be available to support the impacted companies."