UK ethanol producer shuts down due to E10 delay

By Erin Voegele | December 08, 2017

Vivergo Fuels has shut down its U.K.-based ethanol plant in response to legislative uncertainty. The company cited falling ethanol prices and a constrained ethanol market resulting from government inaction as contributing to its decision.

“We reluctantly welcomed the government’s Renewable Transport Fuel obligation proposals in September, but have remained extremely concerned that there is no roll-out framework for E10 in the U.K., the absence of which could have serious consequences for the long-term future of the UK bioethanol industry,” said the company in the statement.

According to the company, its ethanol plant has been taken offline “for the foreseeable future.” Vivergo said it will complete annual plant maintenance activities while the plant is offline in order to maintain employment levels. The company also indicated it will closely monitor the market ahead of any restart of the plant.

Vivergo also said it will work with stakeholders and the government to support the legislative process and future roll-out of E10.

The company is one of the largest ethanol producers in Europe, with the capacity to convert 1.1 million metric tons of wheat into 420 million liters (110.95 million gallons) of ethanol.