The UK's largest bioethanol production facility, Vivergo Fuels in Hull, is facing closure due to the economic repercussions of a recent trade deal negotiated by Prime Minister Keir Starmer with former US President Donald Trump. The agreement has reportedly undercut the competitiveness of British bioethanol producers, forcing Vivergo to cease operations.
Trade Deal Blow to Green Energy Sector
Industry insiders reveal the trade terms have allowed cheaper American bioethanol to flood the UK market, making domestic production financially unviable. This development comes as a significant setback to Britain's renewable energy ambitions and could result in the loss of over 200 skilled jobs in the Humber region.
Economic Ripple Effects
The closure threatens to:
- Disrupt the UK's biofuel supply chain
- Impact local farmers who supply wheat to the plant
- Undermine government carbon reduction targets
Vivergo Fuels, which produces 420 million litres of bioethanol annually, had only recently resumed operations after a previous shutdown in 2018. The plant's current workforce has been placed on consultation as management explores alternatives to complete closure.
Political Fallout
The decision has sparked criticism from opposition parties and environmental groups, who accuse the government of sacrificing green jobs for political expediency. Energy analysts suggest this could be the first of several casualties in the UK's biofuel sector following the controversial trade agreement.
The Department for Business and Trade maintains the deal will benefit consumers through lower prices, but has offered no immediate solution for the affected workers or the wider implications for Britain's renewable energy strategy.
