Tuesday, 5 December 2017

Biofuel plant suspends production blaming Government 'inaction'



The country's largest producer of bioethanol has suspended production and blamed the Government, raising fears for its future.
 
Vivergo Fuels, bought from BP two years ago by Primark parent firm Associated British Foods, said a collapse in profit margins meant it had taken its £350m plant in Hull offline for the "foreseeable future".


Its statement offered no guarantees to the company's 150 staff on their employment prospects.


Vivergo, one of the Government's Northern Powerhouse Partners, said the market "remained constrained by inaction" in the UK on the EU-led E10 initiative - making fuel producers use 10% bioethanol in petrol by 2020 to cut carbon emissions.


Unleaded petrol currently contains about 5% bioethanol - a renewable fuel made from feed wheat.


Vivergo argues that by not implementing E10 fuel, the Government is not only failing to cut emissions, it is also failing its industry and the 3,000 jobs it supports in the supply chain - mainly farmers.



SKY      News.