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UK's Vivergo ethanol plant restarts production

10 Apr 2018 13:24 (+01:00 GMT)
UK's Vivergo ethanol plant restarts production

London, 10 April (Argus) — UK producer Vivergo's 420mn l/yr ethanol plant has restarted production following a four-month shutdown caused by low spot prices and plant maintenance.

Vivergo hopes the UK's recently passed renewable transport fuels obligation will increase ethanol demand and support prices. The biofuels blending mandate will increase to 7.25pc on 15 April, from 4.25pc. Vivergo wants the UK government to introduce E10 — a gasoline blend containing up to 10pc ethanol content by volume — to provide longer-term support to the industry.

The restart of the plant was expected by the market and had weighed on spot and near-curve ethanol contracts in recent weeks. The spot market has been slightly firmer over the last few sessions and rising seasonal demand should support prices, but Vivergo's returning capacity may curb gains.