In the UK, Associated British Foods plc on Friday announced the closure of Vivergo, its UK bioethanol production plant in Hull, which also produces animal feed for UK farms. The decision to close the plant follows extensive discussions with the Government to find a regulatory and financial solution that would enable Vivergo to operate on a profitable and sustainable basis. These discussions were necessary because Vivergo’s commercial viability was undermined by the way in which UK regulations were being applied to favour foreign producers, an issue subsequently made much worse by the Government’s decision in May to remove the tariffs on US bioethanol coming into the UK market. These two actions meant Vivergo would inevitably continue to be heavily loss-making without corrective Government intervention to provide short-term financial support and a longer-term regulatory solution.
The Government has decided not to offer either short-term financial support or the long-term regulatory certainty we sought. Given these circumstances and the financial losses already incurred, ABF has therefore determined in the interests of its shareholders that it cannot continue to support Vivergo. ABF will start an orderly closure process immediately. Vivergo will have ceased all production of bioethanol and animal feed by August 31, 2025.
Tags: bioethanol, UK, Vivergo Fuels
Category: Fuels
