'One week to safeguard jobs at biofuel plant'

The plant produces bioethanol, which is used in E10 petrol

Bosses at the UK's largest bioethanol plant say they will be forced to begin consulting on redundancies within the next week unless the government steps in.

Associated British Foods (ABF) said it was in talks with the government to help save its Vivergo Fuels site at Saltend, near Hull, after the removal of a 19% tariff on imports of ethanol from the US.

ABF Sugar chief executive Paul Kenward said it meant that the government had "given away the entre UK market for bioethanol".

A government spokesperson said it was working closely with the industry to find a way forward.

Speaking to BBC Radio Four, Mr Kenward said there was "a lot at stake".

He said the industry was not asking for a "permanent subsidy", but needed "some bridging support from government until some simple common sense changes to regulation can be made".

Mr Kenward said representatives from the industry had met with government officials, including Business Secretary Jonathan Reynolds.

"Unfortunately, we gave a deadline which was the 15th [June].

"They asked us to wait for another week – we gave them two – but if we don't hear back from them by 25 June we will have to start a consultation process, which may lead to redundancies," he added.

Mr Kenward's comments follow a similar announcement earlier this week by bosses at Ensus's Redcar bioethanol plant.

Ensus chairman Grant Pearson said the government needed to come up with a "urgent" solution to save skilled jobs in the region.

The Vivergo Fuels plant employs about 150 people

In response, a government spokesperson said: "The deal agreed with the US will save thousands of jobs in the UK, and we will always act in the national interest."

A meeting took place last week with representatives from the bioethanol industry "to discuss their concerns", the spokesperson added.

The Saltend plant produces bioethanol which is used in E10 petrol.

E10 was introduced in 2021 to help cut carbon emissions and contains up to 10% bioethanol.

Vivergo also produces animal feed, which is a by-product of the bioethanol production process.

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