One of Britain’s last bioethanol plants will shut its doors at the end of this month, in a major blow to UK green fuel production and thousands of farming jobs.
Vivergo, owned by Associated British Foods (ABF), confirmed it will cease all production of bioethanol and animal feed by 31 August 2025, citing government decisions on trade and tariffs that have undermined the plant’s commercial viability.
The closure follows the government’s announcement that tariffs on US bioethanol imports would be removed, creating major uncertainty over the future of the UK market.
The Hull-based facility has been a key buyer of domestic wheat, purchasing up to one million tonnes a year from more than 4,000 British farms, mainly in Yorkshire and northern Lincolnshire.
In a statement, ABF said: “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.”
The company added that current regulation “favour[s] foreign producers" and that “the government has decided not to offer either short-term financial support or the long-term regulatory certainty we sought”.
The NFU has warned that the closure will have serious consequences for workers and local agriculture.
Jamie Burrows, the union's Combinable Crops Board Chair, described the decision as a major setback, warning of its impact on jobs and farming.
"The closure of the Vivergo plant is a huge blow. Not only is it terrible news for those hundreds of workers who will lose their jobs but also for the thousands of people whose livelihoods depend on that supply chain – that includes local farmers who have lost a vital market for their product."
Alongside the production of low-carbon fuel, the facility generates vital co-products such as high-protein animal feed and carbon dioxide used in food processing and packaging—both of which are now at risk of disruption.
The plant’s closure raises wider concerns about the viability of the UK’s bioethanol infrastructure and comes at a time when the sector is already under pressure from volatile global markets, unclear policy direction, and mounting climate-related challenges.
Mr Burrows stressed that UK bioethanol production remains a crucial sector, with "the volume of wheat entering the supply chain as high as 1.2m tonnes" and significant by-products, including high-quality animal feed and CO2 used across the food industry.
He urged ministers to take a longer-term view: “We need government to recognise the potential economic growth and value of this market by ensuring crops grown for biofuels are used increasingly in road transport and aviation.
"This will open up further market opportunities to incentivise growers to support the country’s biofuel plants.”
