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Government Declines Bailout as Vivergo’s Saltend Plant Moves Toward Closure

The refusal of support puts 160 jobs at risk, imperils domestic CO₂ production, jeopardises a planned sustainable aviation fuel project at Saltend.

Overview

  • Ministers have ruled out direct financial support after commissioned analysis concluded a bailout would not offer value for taxpayers or address underlying competitiveness issues.
  • The May UKUS trade deal removed a 19% ethanol tariff and introduced a 1.4 billion-litre duty-free quota, which Vivergo and Ensus say rendered domestic production commercially unviable.
  • Vivergo took its final wheat delivery on 31 July and halted ethanol output as it begins formal staff consultations with around 160 redundancies expected next week.
  • Closure of the plant threatens demand for over one million tonnes of UK wheat annually and endangers thousands of related farming, haulage and engineering roles.
  • The Saltend facility also produces high-protein animal feed and up to 80% of Britain’s biogenic CO₂, and industry proposals for regulatory reforms and expanded fuel mandates remain unacted upon.