Hull’s Vivergo Bioethanol Plant Faces Collapse Amid US-UK Trade Deal Fallout

The future of green fuel production in Yorkshire is at risk – and with it, hundreds of local jobs and vital supply chains

Vivergo Plant in Crisis: A Renewable Energy Giant at Risk

The Vivergo bioethanol plant in Hull, once hailed as a cornerstone of the UK’s renewable fuel strategy, is on the brink of closure. Despite substantial investment and years of development, the facility has fallen silent as management awaits a final decision from the UK government. Time is running out.

US Competition and Trade Deal Tip the Scales

Vivergo has long struggled to compete with heavily subsidised American bioethanol producers. However, a recent blow came in the form of the US-UK trade deal, which slashed tariffs and opened the UK market to 1.4 billion litres of US ethanol, tariff-free.

Ben Hackett, Vivergo’s Managing Director, warned:

“We’ve effectively handed the entire UK bioethanol market to American producers.”

With a monthly loss of nearly £3 million, the company says the regulatory imbalance and rising energy costs have made it nearly impossible to operate without support.

Jobs, Local Economy and Farming at Stake

Vivergo employs 160 highly-skilled staff, most of whom are based in Hull and its surrounding areas. These are well-paid jobs in a region that already struggles with limited employment opportunities.

Mike Walsh, a logistics manager at Vivergo for 14 years, said:

“The local job market isn't strong. This company gave people good jobs with a future. That’s now under threat.”

It’s not just employees at risk. Farmers in Yorkshire and Lincolnshire, who supply wheat to the plant, face serious losses. Up to two million tonnes of domestic demand for wheat could disappear overnight.

Additionally, CO2, a vital by-product used in food packaging and healthcare, would become even scarcer in the UK if Vivergo and its Teesside-based counterpart, Ensus, were to close. The two facilities currently supply up to 80% of Britain’s Carbon Dioxide output.

Industry Calls for Government Action

The bioethanol sector is urging the government to take immediate action. Their demands include:

• Temporary financial support for facilities under pressure.
• Regulatory reforms to address US double-subsidy advantages.
• Support for market growth, such as increasing the renewable fuel content in petrol from 10% (E10) to 15% (E15).
• Expansion into aviation biofuels, offering long-term market opportunities.

Claire Wood, lead production engineer, added:

“I left a decade in oil and gas to work here. I believed in the green transition. It’s devastating to see it possibly disappear.”

What It Means for the UK Economy

The collapse of Vivergo would reverberate beyond Hull. It would:

• Undermine the UK’s green industrial ambitions.
• Reduce energy independence in a volatile global landscape.
• Impact regional supply chains, farming, and logistics firms.

If the government allows this key plant to fail, it sends a clear signal that domestic renewable fuel production is no longer a priority.

Conclusion: A Fork in the Road for British Green Industry

Vivergo’s fate lies in the government’s hands—and with it, the credibility of the UK’s renewable energy commitments. A decision to save the plant could bolster the green economy, secure jobs, and support farming communities across Yorkshire and Lincolnshire.

But inaction could lead to a significant economic and environmental setback, further tilting the market in favour of foreign producers. With time running out, the government must act swiftly—or risk letting a critical piece of Britain’s sustainable future fade away.

Sources: (SKYmoney.com, Hulldailymail.co.uk)