The NFU has called on the government to urgently support the UK’s biofuels sector, following the sudden suspension of operations at the Vivergo bioethanol plant in Hull.
The plant, owned by AB Foods, has ceased taking wheat deliveries and mothballed its production site, citing uncertainty over UK–US trade negotiations as a key factor behind the decision.
Vivergo has been a cornerstone of the UK’s bioethanol industry, processing more than one million tonnes of wheat each year from over 4000 British farms. Its closure puts a major market for home-grown grain on pause, with knock-on effects expected throughout the national grain supply chain.
The site also produces key co-products, including high-protein animal feed and carbon dioxide for food processing and packaging, raising concerns over potential disruption in multiple supply chains.
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Jamie Burrows, chair of the NFU combinable crops board, said the closure threatens to further destabilise an already fragile market: “Not only are there huge implications for those growers that currently supply Vivergo, but this also has the potential to put further downward pressures on farmgate prices.
"Our arable farmers are already under immense strain from volatile markets and extreme weather. This only makes the situation worse.”
The NFU is urging the government to expand support for crop-based biofuels, especially in road transport and aviation, to ensure domestic grain has a viable market beyond feed use.
“We need immediate policy changes to allow more biofuels from crops into the UK’s renewable fuel mix,” Mr Burrows added. “Without that, we risk losing critical infrastructure.”
Sector stakeholders warn that without active government backing, the UK risks becoming increasingly dependent on imported biofuels to meet its renewable energy targets, thus undermining the environmental benefits and threatening local supply chains.
With only one large-scale bioethanol facility now operating in the UK, the NFU is calling on ministers to safeguard what remains of the industry, emphasising its role in reducing transport emissions and supporting rural economies.
“Bioethanol must remain a key part of the UK’s green transition,” emphasised Mr Burrows. “But that won’t happen unless we act now to protect the farmers and infrastructure that make it possible.”
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