Uncertainty Surrounds Vivergo Following U.K.-U.S. Trade Agreement
The future of Vivergo has become uncertain after the U.K.-U.S. trade deal, announced in May, allowed the import of 1.4 billion liters of tariff-free American ethanol, nearly matching the size of the entire domestic market, reports 24brussels.
This decision carries broader implications for other sectors and investment in Britain. Vivergo was set to supply feedstock for a £1.25 billion sustainable aviation fuel facility supported by Meld Energy, a project that is now paused. Over 12,000 U.K. wheat farmers provide supplies to Vivergo’s plant, which also manufactures high-protein animal feed.
In addition, Ensus, one of the few remaining bioethanol producers in the U.K., contributes approximately 30 percent of the nation’s commercial carbon dioxide — essential for soft drink production and medical applications.
“We recognize 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,” stated a government spokesperson. “We also continue to develop proposals that ensure the resilience of our CO2 supply in the long term in consultation with the sector.”
The decision is likely to be unpopular among voters in Hull, particularly given the proximity of the Saltend chemical park, located only a ten-minute drive away.
Reform UK’s Luke Campbell, who recently assumed office as Hull and East Yorkshire mayor with nearly 50,000 votes, criticized Labour’s decisions, stating: “Labour’s decision not to provide support, and not to change the clause in their U.S.-U.K. trade deal is incredibly disappointing. It means job losses and closures for hard-working people.”
