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Government will not offer bailout to UK's largest bioethanol plant
The removal of a 19% tariff on US ethanol imports under a UK-US trade deal led to losses, forcing closure and risking 4,000 supply chain jobs, industry analysts said.
- Vivergo Fuels, the UK's largest bioethanol plant near Hull, announced its closure after being denied a government bailout on August 15, 2025.
- The closure resulted from a recent UK-US trade deal removing a 19% tariff on ethanol imports, undermining Vivergo's ability to compete with subsidized American producers.
- Vivergo had fought for months and initiated good-faith talks with the government, while purchasing wheat from thousands of UK farms and supporting about 4,000 jobs in the supply chain.
- Ben Hackett, Vivergo's managing director, said the government’s failure forced immediate closure and criticized “unfair regulations” and the trade deal pushing the sector “to the point of collapse.”
- The government explained that after careful consideration, it decided against providing direct financial support because such assistance would neither benefit taxpayers nor address the industry's enduring challenges, while committing to assist the workers impacted by this decision.
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khbrknewsGovernment will not offer bailout to UK's largest bioethanol plant
Owners Vivergo, a subsidiary of Associated British Foods, had warned that the plant would close without government support, and sources at the company have told Sky News the wind-down process is now likely to begin.
·United Kingdom
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UK’s Largest Bioethanol Plant Closure Reshapes Energy, Agricultural Sectors
The closure of the UK’s largest bioethanol plant, Vivergo Fuels, marks a significant shift in the country’s energy and agricultural sectors, with profound implications for investors and the broader economy. While the immediate impact includes job losses and a blow to the local supply chain, the situation also presents opportunities for strategic realignment and innovation. The decision by the UK… Source
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Total News Sources17
Leaning Left2Leaning Right2Center5Last UpdatedBias Distribution56% Center
Bias Distribution
- 56% of the sources are Center
56% Center
L 22%
C 56%
R 22%
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