The UK's largest bioethanol plant will be forced to close unless the government acts, according to its operator. In April, Associated British Foods (ABF) said it was in talks with the government to help save its Vivergo Fuels site at Saltend, near Hull, after being forced to cut production levels due to low bioethanol prices. On Tuesday, Vivergo said the removal of a 19% tariff on US ethanol imports, which was part of the recent UK-US trade deal, was the "final blow". A government spokesperson said it was working closely with the industry to understand the impacts of the trade deal and it was open to discussions over potential support. In a letter to farmers, Vivergo managing director Ben Hackett said: "Unfortunately, if there is no government intervention in the next few weeks, our plant will have to close. "That is because the government has made a series of decisions that undercut UK ethanol production in favour of US imports. 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." The firm said that without urgent action, the plant, which employs more than 160 people, would no longer be viable and its wheat purchases would end. Mr Hackett added: "This is avertable. If the government provides sufficient policy certainty to us in the long term and ameliorates the effects of their decisions in the short term, we can continue to operate and expand production. "But so far, they have made no commitments." Earlier this month, Business Secretary Jonathan Reynolds met representatives of ABF and the country's other key bioethanol producer, Ensus UK, which is based in Cleveland. The firms said the the secretary of state agreed on the need for "urgent next steps" to protect the UK's bioethanol industry and had committed to act within "days, not weeks" amid concerns that hundreds of jobs could be at risk. Mr Hackett said: "So far, nothing has been forthcoming." However, he added: "We still believe this situation can be turned around – but time is rapidly running out." In response, a government spokesperson said: "We signed a deal with the US in the national interest to secure thousands of jobs across key sectors. "We are now working closely with the industry to understand the impacts of the UK-US trade deal on the UK's two bioethanol companies and are open to discussion over potential options for support." The Saltend plant produces bioethanol which is used in E10 petrol. E10, whichwas introduced in 2021to help cut carbon emissions, contains up to 10% bioethanol. Vivergo also produces animal feed, which is a by-product of the bioethanol production process. Listen to highlights fromHull and East Yorkshire on BBC Sounds, watch thelatest episode of Look Northor tell us about a story you think we should be coveringhere.
Biofuel plant 'faces closure after US trade deal'
TruthLens AI Suggested Headline:
"Vivergo Fuels Plant Faces Closure Amid Changes in US Trade Deal"
Bbc News
6.9
TruthLens AI Summary
The UK’s largest bioethanol plant, Vivergo Fuels, is facing imminent closure unless the government intervenes. The plant, located at Saltend near Hull, has been compelled to reduce its production due to plummeting bioethanol prices. This situation has been exacerbated by a recent UK-US trade deal that eliminated a 19% tariff on US ethanol imports, which Vivergo's operator, Associated British Foods (ABF), claims is the 'final blow' to the viability of the plant. Vivergo's managing director, Ben Hackett, has communicated to farmers that without government action in the coming weeks, the plant would not be able to continue operations. He pointed out that the government's decisions have prioritized US imports over UK ethanol production, significantly impacting their ability to purchase wheat needed for bioethanol production. Currently, the plant employs over 160 people, and the cessation of operations would not only threaten these jobs but also disrupt the local agricultural sector reliant on wheat sales to the facility.
Additionally, there are calls for urgent government support to ensure the future of the bioethanol industry in the UK. Earlier discussions with Business Secretary Jonathan Reynolds indicated a recognition of the need for immediate action to safeguard jobs and production capabilities. However, despite these discussions, ABF has reported no concrete commitments from the government thus far. Hackett remains hopeful that with the right policy adjustments and support, the situation could be remedied, but he emphasizes that time is of the essence. The Saltend facility is crucial not only for bioethanol production, which is blended into E10 petrol to reduce carbon emissions, but also for producing animal feed as a by-product. The government has acknowledged the significance of the trade deal but insists it must balance national interests with industry needs, maintaining an open dialogue about potential support options for the bioethanol sector.
TruthLens AI Analysis
The article highlights the critical situation facing the UK's largest bioethanol plant, Vivergo Fuels, which is on the brink of closure due to the implications of a recent UK-US trade deal. The operator, Associated British Foods (ABF), indicates that the removal of tariffs on US ethanol imports has severely impacted the viability of domestic production. This news raises concerns not only about the future of the plant and its employees but also about the broader implications for the UK bioethanol industry.
Impacts of Trade Policies
The main issue revolves around the recent trade agreement, which has removed a 19% tariff on US ethanol. This change is perceived as detrimental to UK bioethanol producers, who now face heightened competition from US imports. The article suggests that the government's decisions have favored US ethanol, threatening local jobs and production capacity. Vivergo's managing director articulates the need for government intervention to stabilize the industry and prevent closure.
Public Perception and Government Response
The communication from Vivergo aims to rally support from stakeholders, including farmers and the general public. The managing director’s letter emphasizes the urgency of government action, indicating that without it, the plant will cease operations. This creates a narrative of vulnerability for local jobs while also potentially prompting public pressure on the government to take action. The mention of meetings between business representatives and the Business Secretary underscores a sense of urgency and the government’s acknowledgment of the situation.
Potential Concealment of Broader Issues
While the article focuses on the immediate concerns of the bioethanol plant and its workers, it may obscure broader systemic issues within the UK agricultural and energy sectors. There could be underlying factors, such as long-term market trends or sustainability considerations, that are not addressed in this narrative. This raises questions about the transparency of the situation and whether there are other motivations behind the trade deal that are not being disclosed.
Manipulative Elements
The language employed in the article leans towards generating urgency, appealing to emotions regarding job security and local business viability. By framing the situation as a looming crisis, it aims to galvanize public support for government intervention. The emphasis on the plant's closure may also serve as a tactic to shift responsibility onto the government, highlighting perceived failures in policy that have led to this predicament.
Reliability of the News
The reliability of the news can be assessed through its sourcing and the presentation of facts. The article cites direct statements from Vivergo's management and references government discussions, which lends credibility. However, the framing of the issue could suggest a bias towards advocating for the company’s interests, particularly as it calls for immediate government action.
In conclusion, the article serves to inform the public about a pressing issue within the bioethanol sector while subtly shaping public opinion to favor intervention. It highlights the fragility of local industry in the face of international trade agreements, urging stakeholders to consider the long-term ramifications of such policies on domestic production and employment.