Cllr Mike Ross, leader of Hull City Council, has warned that thousands of jobs in the renewable energy sector could be at risk, including hundreds locally, without urgent government backing.
In a joint letter with Cllr Anne Handley, leader of East Riding of Yorkshire Council, addressed to secretary of state for business and trade, Jonathan Reynolds MP, as well as Heidi Alexander MP, secretary of state for transport, Cllr Ross stressed the need for strong central government support for Vivergo Fuels ahead of next week’s launch of the national Industrial Strategy.
He stated that the future of the Vivergo plant, based at Saltend Chemicals Park, is at imminent risk as a result of the recent UK-US trade deal and poor regulation.
Cllr Ross outlined the wider impact closure of Vivergo Fuels could have on the region and how it also raises questions about the government’s commitment to green energy and its policies to support it.
In the letter, Cllr Ross said: “Not only is Vivergo Fuels the UK’s largest bioethanol producer, with a crucial role to play in UK transport decarbonisation, but it’s also a strategically important anchor employer in the region.
“It supports over 160 skilled jobs directly and around 4,000 more in the supply chain, the majority of which are based in our Hull and East Riding region.
“The Humber has gained a deserved reputation as a beacon for renewable energy development and production and we are working extremely hard to attract further investment to the region in emerging technologies. such as hydrogen and sustainable aviation fuel.
“This would be immeasurably harder to do if regulatory and financial support are not forthcoming for this business, which has already seen over £700m of private sector investment since 2012.
“The Government’s new UK-USA trade deal has deliberately moved the commercial goalposts, damaging a UK business, which invests in the UK and employs UK workers, whilst advantaging American businesses who produce their product overseas.
“Allowing closure of the Vivergo Fuels plant would send a hugely damaging signal to clean energy investors and to any businesses who are considering investing in this region and across the UK.
“The government has identified clean energy as one of its priority industries and states that its number one focus is encouraging growth, so we now need to see that rhetoric matched with concrete actions and support.
“On behalf of Hull City Council and East Riding of Yorkshire Council, I urge you to act swiftly to secure the necessary support for this business which is of great significance to the residents of our authority and many across our wider region.”
Ben Hackett, managing director of Vivergo Fuels, added: “Vivergo Fuels is a fantastic asset to Hull and East Yorkshire. Not only do we employ a highly skilled workforce and support thousands more jobs in the supply chain, we are a catalyst for further green industrial development and investment which would allow the fuels of the future to be pioneered right here on the Humber.
“We are simply asking the government for measures that will allow UK ethanol producers to remain competitive in the face of US imports, which benefit from a range of advantages from genetically modified crops to cheaper energy costs.
“We now need to see concrete commitments from ministers in the coming days to safeguard jobs, and protect against the loss of significant investment in the people of this region.”
