UK ethanol producer Vivergo Fuels has told UK government ministers it will start closing the 416mn litres/yr Saltend plant in the absence of a decision on support by next Monday, 18 August.
Vivergo's requests for government support began in May after a US-UK trade deal included a duty-free quota for up to 1.4bn l/yr of US ethanol, removing the previous 19pc duties. Vivergo said it has lost almost £10mn ($13.5mn) since May.
"This level of losses is not sustainable for any business," said the head of parent company ABF's sugar business, Paul Kenward. "We cannot go beyond Monday 18 August unless these losses are covered from this date, alongside a commitment from government to support a roadmap to profitability for the British bioethanol industry."
Vivergo's primary request is for the UK government to increase domestic ethanol demand above the 1.4bn l/yr US quota, which represents almost the entire UK ethanol market.
In practical terms, a demand increase would require raising the legal blending limit for ethanol above 10pc (E10) to a higher blend such as E15 or E20. But the increase in the standard gasoline grade from E5 to E10 only took place in late 2021, three years after Vivergo mothballed its Hull plant a previous time, partially because of lack of progress from the government on introducing E10. And retail stations still have to offer an E5 protectionist grade at the pump, a so-called "super grade."
