150 jobs at risk as biofuel plant in danger of closure
Associated British Foods (ABF) has said it could shut a bioethanol plant in East Yorkshire, which is putting about 150 jobs at risk.
ABF, which owns the Primark, Kingsmill, Ryvita and Twinings brands, is in talks with the government to help retain its Vivergo fuels site at Saltend, near Hull.
The plant makes bioethanol, which is used in a type of petrol called E10. The fuel, which was introduced in 2021 to help cut carbon emissions, contains up to 10% bioethanol.
Vivergo also produces animal feed, which is a by-product of the bioethanol production process.
The plant first opened in 2012, but was mothballed between 2018 and 2021. It has recorded a loss in recent months after reducing production levels due to low bioethanol prices.
ABF, in its results for the 24 weeks ended 1 March 2025, stated: “In Vivergo, the way in which regulations are being applied to bioethanol is undermining the commercial viability of our business.
“We are having constructive discussions with the UK Government to explore regulatory options to improve the position.
“There is no guarantee that these discussions will be successful, and we will either mothball or close the Vivergo plant if necessary.”
ABF’s pre-tax profits fell 21 per cent to £692m for the 24 weeks to 1 March, with revenues two per cent lower at £9.5bn for the same period.
Vivergo Fuels was chosen as one of the government’s official Northern Powerhouse partners in 2016.
It was selected to help implement the government’s plan to support the North of England in reaching its full potential and to attract new jobs and investment.
