British government not backing “great example” of UK manufacturing as Vivergo Fuels announces closure plans

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A modern biofuels facility. “Government’s lack of pace over the past decade to introduce E10 has further undermined our ability to operate” and contributed to the decision to close a plant capable of producing up to 420m litres a year of bioethanol,” said Vivergo Fuel’s managing director Mark Chesworth.

The Renewable Energy Association has called on the Government to introduce E10 at the earliest possible opportunity following news in early September of Vivergo Fuels’ plans to close its bioethanol plant in Hull.

The Government wants to see the introduction of greener petrol with twice the renewable ethanol content – known as E10 – and is currently running a consultation on the subject. E10 will deliver emissions savings equivalent to taking 700,000 cars off the road as well as bringing many other benefits.

However, the government has merely a call for evidence on introduction of E10, whereas the main proposal in the consultation document is a requirement on larger filling stations to ensure regular E5 petrol continues to remain available. The document acknowledges this requirement would have the consequence of delaying the introduction of E10.

When making their announcement Vivergo Fuels Managing Director, Mark Chesworth stated “Government’s lack of pace over the past decade to introduce E10 has further undermined our ability to operate” and contributed to the decision to close a plant capable of producing up to 420m litres a year of bioethanol.

Gaynor Hartnell, Head of Renewable Fuels at the REA, commented:

“Introducing E10 should be a Government priority. Whilst the Government wants to see fuel retailers introduce this fuel, it has pulled back from a simple mandate requiring them to do so. E10 is the standard reference fuel for today’s petrol cars, and is widely available across Europe as well as the USA, Australia and many other parts of the world.

“Vivergo is a part of the government’s Northern Powerhouse project and a great example of highly-skilled British manufacturing. At a time when the UK is facing substantial external energy risks Government should be doing all it can to ensure a market for domestically-produced, environmentally sustainable fuels.

“A simple mandate is favoured by most of the relevant stakeholders, including the NFU and ourselves, and had the current Government consultation proposed this, perhaps Vivergo would not be making this announcement.”