US EditionGovernment will not offer bailout to UK's largest bioethanol plant
The removal of a 19% tariff on US ethanol imports under a UK-US trade deal led to losses, forcing closure and risking 4,000 supply chain jobs, industry analysts said.
- Vivergo Fuels, the UK's largest bioethanol plant near Hull, announced its closure after being denied a government bailout on August 15, 2025.
- The closure resulted from a recent UK-US trade deal removing a 19% tariff on ethanol imports, undermining Vivergo's ability to compete with subsidized American producers.
- Vivergo had fought for months and initiated good-faith talks with the government, while purchasing wheat from thousands of UK farms and supporting about 4,000 jobs in the supply chain.
- Ben Hackett, Vivergo's managing director, said the government’s failure forced immediate closure and criticized “unfair regulations” and the trade deal pushing the sector “to the point of collapse.”
- The government explained that after careful consideration, it decided against providing direct financial support because such assistance would neither benefit taxpayers nor address the industry's enduring challenges, while committing to assist the workers impacted by this decision.
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darlingtonandstocktontimes.co.uk
darlingtonandstocktontimes.co.ukHope for future of plant with 100 workers despite Government rejecting rescue deal
Fresh hopes have been raised for the future of a Teesside biofuel plant despite Government rescue talks falling through.
·County Durham, United Kingdom
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UK Rejects Bioethanol Industry Bailout
The UK government has decided against bailing out the country’s bioethanol plants, which have warned they would be forced to close without a rescue package as the U.S.-UK trade deal has made them unviable. The trade deal from May removed a previous 19% tariff, which the UK imposed on imports of U.S. bioethanol. As a result, the UK-produced bioethanol has been unable to compete with the zero-tariff imported U.S. bioethanol. Vivergo Fuels, the…
·London, United Kingdom
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Coverage Details
Total News Sources25
Leaning Left3Leaning Right2Center7Last UpdatedBias Distribution58% Center
Bias Distribution
- 58% of the sources are Center
58% Center
L 25%
C 58%
R 17%
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