Vivergo Fuels Ltd has announced that it will cease production for good at its Hull-based bio-ethanol plant at the end of September. The plant is the UK's largest and Europe's second largest producer of bio-ethanol.
The move comes just four months since the 11-year-old plant re-opened after a prolonged winter closure on the back of weak ethanol prices and a lack of direction on government energy policy.
The high domestic and international price of wheat has been a further blow to the company, with global droughts and weak sterling leaving the company with little prospect of importing cheaper grain from overseas.
Expressing his disappointment at having to announce the closure, Mark Chesworth, MD of Vivergo Fuels Ltd said: "We have created a highly skilled and world-class business that had the opportunity to be part of a British sustainable bio-fuels industry. But sadly, the Government's lack of pace over the past decade to introduce E10 (a bio-fuel made up of 90 percent regular, unleaded petrol and 10 percent ethanol) has further undermined our ability to operate."
The closure is a major blow to about 900 farms across East and North Yorkshire and Northern Lincolnshire who supplied about 1.1m tonnes a year of wheat to the plant.
The plant was also the country's largest single production site for animal feed, with an annual output of 500,000t of high-protein feed.
Market round-up
C&D Auction Marts Ltd sold 2811 prime lambs in Longtown on Thursday to a top of £107 per head and 244p per kg to average 178p (-10.5p on the week).
There were also 4754 cast sheep forward when heavy ewes sold to £153 for a Texel and averaged£78.58 (+£3.26), while light/export-type ewes peaked at £69 for Blackfaces and levelled at £31.85 (-£8.16). Rams sold to £126 for Texels and averaged £64.27.
Messrs Craig Wilson Ltd sold 355 store heifers at Ayr on Thursday to a top of £1245 per head and 230.6p per kg to average £923.06 and 194.8p (-11.5p on the fortnight), while 480 store, beef-bred bullocks peaked at £1405 and 244.7p to level at £937.92 and 211.9p (+1.3p). Thirty-seven store B&W bullocks sold to £835 and 154.3p for the same pen to average £730.14 and 142.3p (+1.5p).
The firm went on to sell 130 store heifers in Newton Stewart yesterday to a top of 220.2p and an average of 194.8p (-6.8p on the August sale), while 110 store, beef-bred bullocks peaked at 226.5p and levelled at 208.1p (+3.3p). Thirty-nine store, dairy-bred bullocks sold to 200p and averaged 168.8p (+30.1p).
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