Vivergo Fuels has announced it is closing its bioethanol facility in Hull.
The company, set up in 2007, aimed to deliver a sustainable and significant portion of the UK’s forecast biofuel demand.
It, however, said that given the “continued difficult trading environment” and delays in the implementation of the E10 fuel – which contains more bioethanol than traditional petrol – in the UK, the company is ceasing production.
The government had launched a consultation, running until 16th September 2018, on whether and how it should introduce the E10 fuel.
Mark Chesworth, Managing Director at Vivergo Fuels Ltd said: “I am extremely disappointed at having to announce the proposed cessation of production as of the 30th September 2018 at the Vivergo Fuels plant.
“We have created a highly skilled and world-class business that had the opportunity to be part of a British sustainable biofuels industry. But sadly, the government’s lack of pace over the past decade to introduce E10 has further undermined our ability to operate. My employees are my number one concern at this time and we have entered into consultation with them.”
A Department for Transport spokesperson said: “We remain committed to supporting the biofuels industry and we have already introduced changes to the Renewable Transport Fuels Obligation which will almost double the use of renewable fuels by 2020.
“In addition, we are currently consulting on how we could introduce E10 fuel to UK forecourts, while making sure that drivers are protected if any changes come into effect. This demonstrates our commitment to reducing carbon emissions from transport to tackle climate change.”
