The Government must take action within "hours and days" to prevent the loss of the º£½ÇÊÓƵ's bioethanol industry, the boss of Hull's Vivergo fuels has said. Ben Hackett leads the under-threat producer which employs 160 people and supports many more in the supply chain, and says the loss of the industry would "haunt the Government and everybody for decades to come".
The stark message comes nearly a month after the º£½ÇÊÓƵ and US signed a trade deal featuring a concession to remove a 19% tariff on US bioethanol imports, which has dealt a serious blow to domestic producers. Speaking to the BBC's Today programme, Mr Hackett said that "with the stroke of a pen" the Government had given away the entire º£½ÇÊÓƵ bioethanol volume to the US.
He said: "We had a 19% tariff that basically levelled the playing field between the heavily subsidised US production and ourselves. That allowed us to compete on an equal basis but by removing those tariffs, we are not longer able to compete in that º£½ÇÊÓƵ market - putting at risk the 160 employees of Vivergo and the 4,000 people working in the supply chain and the 12,000 growers - British farmers - whose livelihoods will be impacted by our non-existence.
"And not only that, but, the Government talks about protecting British businesses and British jobs - Keir Starmer posted that on X yesterday. This is also a business that's at the heart of the green industrial strategy, that the Government professes to want to invest in.
"Without us there is no green industrial strategy, so Secretary of State Reynolds said he'd take action in days - that was a month ago. I'd say now we've had some lovely words and platitudes but we need action in hours and days now to prevent the closure of the British bioethanol industry which will haunt this Government, and everybody, for decades to come."
Vivergo's Saltend plant is said to be the º£½ÇÊÓƵ's largest, while Teesside based Ensus employs just over 100 people and produces bioethanol as well as protein concentrate for the animal feed market and biogenic CO2 used in the food industry. In recent days the British Chambers of Commerce has come out in support of the two firms, saying targeted support is needed from the Government.
Mr Hackett added: "Our asks of Government have been crystal clear actually. And they're not unknown at all.
"We need the Government to grow the British market for bioethanol so that we can have a place to play, we need to have a regulatory framework that supports British industry and stops effectively subsidising already subsidised ethanol - which frankly is of a questionable greenhouse gas reduction standard. The whole point of bioethanol is to decarbonise road transport, and we will be there, not only to decarbonise road transport but to decarbonise marine transport and aviation transport in the years to come."
Mr Hackett went on to say: "Taking this decision now to eliminate capacity is absolutely the wrong thing to do. It goes against everything the Government says it wants to do in terms of investing and the green economy."
