'Act now' - Government urged to save biofuels firm

The Government has been urged to take “decisive action” to save a biofuels business from collapse.

Vivergo Fuels says it will close its Hull base “in the next few weeks” – with around 160 jobs understood to be at risk – after being hit by new trade deals.

And Hull & Humber Chamber of Commerce has now appealed for ministers to act, calling on Downing Street to support the firm and wider fuels sector by unlocking a £15 billion investment programme.

Vivergo Fuels’ Saltend Chemicals Park base operates as the UK’s largest bioethanol plant, which officials say has capacity to turn more than one million tonnes of wheat into fuel ethanol and high protein animal feed every year.

However, the company says the Government’s recent US trade deal – which includes a concession to remove tariffs on American ethanol – leaves its future hanging by a thread.

A spokesperson said: “if there is no Government intervention in the next few weeks, our plant will have to close.

“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.

“If the Government provides sufficient policy certainty in the long-term, and ameliorates the effects of their decisions in the short-term, we can continue to operate and expand production.

“But it has so far made no commitments.”

David Hooper, Hull & Humber Chamber of Commerce external affairs director, echoed the call for action, calling on the Government to turn previous investment discussions into positive action.

He added: “Only a few weeks ago, business leaders met with Energy Secretary Ed Miliband in Hull and left him in no doubt of the urgency for the Government to give the go-ahead for many projects in our region, which will unlock more than £15 billion investment and create thousands of jobs.

“We need decisive action now before these investments go elsewhere.

“Time is running out fast.”

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