The UK’s largest bioethanol plant, Vivergo fuels, is set to cease all production by 31 August 2025 after its owner, Associated British Foods (ABF) confirmed it has failed to secure financial support or regulatory relief from the UK government.

The closure follows on from a recent UK-US trade deal that removed a 19% tariff on 1.4bn litres of US ethanol imported into the UK.

The facility based in Hull utilises around 1m tonnes of feed wheat per year to produce 420m litres of bioethanol and around 400,000t of animal feed, which is a by-product of the process.

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Responding to the proposed closure, Jamie Burrows from the National Farmers’ Union (NFU) said it was a huge blow, not only for hundreds of workers, but for local farmers who have lost a vital market for their product.