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At a fuel plant near Hull, a delivery of 20 tonnes of wheat is unloaded from a lorry into storage, destined for conversion into ethanol—a biofuel blended with gasoline to lower carbon emissions.
However, this week’s consignment, sourced from Lincolnshire farms, represents the final order for Vivergo Fuels.
The owners of the UK’s largest bioethanol facility, located in Saltend, have expressed serious concerns about its future viability following a government decision to eliminate a 19% tariff on US ethanol imports, as part of a recent UK-US trade agreement.
Last month, Vivergo, a subsidiary of Associated British Foods (ABF), initiated consultations with its workforce regarding the potential shutdown of the plant, citing the prevailing uncertainty.
Company executives are urgently appealing to government ministers for financial assistance. They warn that without such support, production at the site—which provides employment for over 160 individuals—may cease operations before September 13.
Estimates suggest that approximately 4,500 jobs throughout the supply chain could be affected, including wheat farmers and transportation providers.
The government has stated that it is engaged in formal discussions with the company, seeking “a way forward that protects supply chains, jobs and livelihoods.”
Stacey Monkman, a three-year employee in Vivergo’s commercial and logistics departments, acknowledges the difficulty in maintaining morale.
“We remain motivated by our current responsibilities, but the situation is deeply unsettling.”
“The uncertainty and the waiting are challenging,” she explains.
“We all have families and financial obligations, so the stakes are very high for us.”
Nick Smalley, the production manager, who started as an apprentice, now oversees around 65 employees at the refinery.
“It is incredibly frustrating that these decisions are being made without our input,” he laments.
“I am deeply committed to my team, and I want a secure future for them. We need swift action now, as we are approaching a critical juncture.”
Production at Saltend had already been scaled back due to depressed bioethanol prices, with ABF initially raising the possibility of closure in April, followed by the trade agreement in May.
The impact extends beyond Vivergo employees. The plant procures over a million tonnes of British wheat annually from more than 4,000 farms and reports having sourced from 12,000 individual farms over the past decade.
Farmer Matt Pickering, of Pickering and Sons, located near Gainsborough, Lincolnshire, supplied the final wheat delivery to Vivergo.
“We face challenges with our land quality, so we tend to focus on maximizing bulk volume,” he notes.
“Vivergo has been an excellent outlet for us to sell feed wheat.”
Aghaul Limited, the company responsible for transporting the final wheat consignment to the plant, is among the transportation firms bracing for the impact.
Managing director Mike Green anticipates that the potential loss of the contract will have a substantial “knock-on effect” on his haulage business.
“The government needs to address this issue, as it affects a vast number of people, not just me.”
Ben Hackett, the managing director of Vivergo, emphasizes the plant’s role as a “key foundation in the overall green economy.”
He contends that the removal of tariffs on US imports has destabilized the market.
“Our customers have disappeared overnight, creating a genuine crisis. We cannot afford to operate this facility at a loss,” he asserts.
Mr. Hackett communicated to growers earlier this year that the plant will only be able to fulfill existing contractual obligations for wheat purchases while the uncertainty persists.
He has appealed to the government to bolster bioethanol production by establishing a clear framework to stimulate demand, in addition to providing financial support during the transition.
“We are just weeks away from Associated British Foods having to decide on the viability of the business,” he warns.
“This site could very well close unless the government takes action.”
A government spokesperson acknowledged that the bioethanol industry has been facing “significant challenges” for some time and stated that ministers are collaborating with Vivergo on a plan to safeguard jobs and the supply chain.
Engagement with the companies is proceeding “at pace,” and external consultants have been engaged to provide assistance.
“We recognise that this is a concerning time for workers and their families, which is why we entered into formal discussions with the company on potential financial support last month,” the spokesperson stated.
“We will continue to take proactive steps to address the long-standing challenges the company faces and remain committed to working closely with them throughout this period to present a plan for a way forward that protects supply chains, jobs and livelihoods.”
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