‘Deeply regrettable’: Thousands of jobs at risk after Government refuses Vivergo bailout
‘INCREDIBLY DIFFICULT’: Vivergo Fuels at Saltend Chemicals Park, on the outskirts of Hull
By Rick Lyon, Co-Editor
Thousands of jobs in the renewable energy sector are now at risk after the Government confirmed it will not step in to save the Vivergo Fuels plant at Saltend Chemicals Park.
The future of the Vivergo plant, on the outskirts of Hull, has been under threat as a result of the recent UK-US trade deal. The deal removed a 19 per cent tariff on ethanol imported from the US up to a quota of 1.4bn litres.
Vivergo at Saltend supports over 160 skilled jobs directly and around 4,000 more in the supply chain across Hull and East Yorkshire.
After months of negotiations, the Government’s Department for Business and Trade (DBT) has now confirmed it will not intervene and directly fund UK-based bioethanol firms, including Vivergo.
A spokesperson said: “This Government will always take decisions in the national interest. That’s why we negotiated a landmark deal with the US which protected hundreds of thousands of jobs in sectors like auto and aerospace.
“We have worked closely with the companies since June to understand the financial challenges they have faced over the past decade, and have taken the difficult decision not to offer direct funding as it would not provide value for the taxpayer or solve the long-term problems the industry faces.
“We recognise this is a difficult time for the workers and their families, and we will work with trade unions, local partners and the companies to support them through this process.
“We also continue to work up proposals that ensure the resilience of our CO2 supply in the long-term in consultation with the sector.”
A spokesperson for Associated British Foods (ABF), which owns Vivergo, said: “It is deeply regrettable that the Government has chosen not to support a key national asset.
“We have been fighting for months to keep this plant open. We initiated and led talks with Government in good faith. We presented a clear plan to restore Vivergo to profitability within two years under policy levers already aligned with the Government’s own green industrial strategy.
“In making this decision, the Government has thrown away billions in potential growth in the Humber and a sovereign capability in clean fuels that had the chance to lead the world. Hugely significant investment was lined up to go into the area, from ABF and other companies. Jobs in clean energy will now move overseas – principally to the US but also to other countries with a more sensible regulatory environment.
“This plant should always have been profitable under the right regulatory environment, as similar plants in Western Europe demonstrate. The Government’s own commissioned analysis spells out that Vivergo could and should be profitable under that environment.
“The loss of Vivergo will be felt most acutely by our dedicated workforce and their families and by the thousands whose livelihoods depend on our supply chain – from farmers to hauliers and engineers. We are hugely disappointed, on their behalf, that the press was informed of this decision before we were told – and before we had a chance to communicate to our staff. Our focus is now on supporting the working people at our plant in Hull.”
Hull West and Haltemprice MP Emma Hardy said: “I know this news will be incredibly difficult for everyone who works at Vivergo, or who has a loved one affected by this decision. My thoughts are with all those impacted.
“I’ve been in touch with senior leadership at Vivergo earlier this week and I’ve spoken directly with the Minister to ask that swift and effective support will be made available to those who need it.
“If you live in Hull West and Haltemprice and have been impacted by this, please don’t hesitate to contact me directly. I am here to help and will do everything I can to support you during this difficult and uncertain time.”