The site will reopen after the Department for Transport announced E10 petrol will be introduced at petrol pumps from September
The Vivergo Fuels site in Hull is set to reopen after an announcement from the Department of Transport of the introduction of E10 fuel from September.
The plant closed in September 2018 due to a ‘difficult trading environment’ and the Government’s failure to rollout E10 fuel.
AB Sugar said the plant would help cut transport Co2 emissions by up to 750,000 tonnes per year, the equivalent of taking 350,000 cars off the road.
Before its closure, Vivergo processed around 1.1 million tonnes of wheat from approximately 900 farms mainly across East and North Yorkshire and Northern Lincolnshire.
Dr Mark Carr, Group Chief Executive of AB Sugar, said it was an ‘extremely difficult decision’ to close but they had maintained the ‘world-class’ plant in anticipation of restarting if the conditions were right.
“With the Government’s announcement to introduce E10 to UK vehicles and improved market conditions, we are re-opening the plant and will start manufacturing bioethanol in early 2022,” he said.
They would also be recruiting 85 people for specialist roles.
“This is good news for a sustainable British biofuels industry, the economy within the Humber region, and the environment and consumers. I look forward to our continued investment and ambition for the UK bioethanol industry.”
Local MP for Beverley and Holderness Graham Stuart said it was fantastic news for jobs and for the environment.
“Not only did they directly employ hundreds of local people in skilled jobs but they were also a crucial buyer of crops for local farmers, and their by-products are also very important in the production of animal feed,” he said.
Mr Stuart added E10 should be embraced for its environmental benefits.
“Vivergo also produce high-quality, protein-rich animal feed as a by-product, which reduces our dependency on soy imports from South America.
“Needless to say, this benefits the UK’s food security – not to mention the fact that it cuts transport emissions and helps prevent deforestation.”
The NFU welcomed the news E10 would be available on petrol forecourts from September.
NFU crops board chairman Matt Culley said: ““Not only will this mandate provide a boost for the UK wheat and sugar sectors, it will play an important and immediate role in delivering the government’s green agenda, especially as it may be some years before we are able to make a countrywide shift to fully electric vehicles.
“E10 is a great example of how investment in farming and the rural economy can benefit the whole country. British growers have the ability to deliver more renewable fuel for the nation, alongside continuing to produce the country’s larder staples, and we should do all we can to maximise that potential to help drive green growth across the economy.”