Vivergo chief optimistic after renewable fuel move

After being mothballed for four months, bio-energy giant Vivergo is now back in production but it has warned the UK government that its long-term future depends on the introduction of a higher grade “green” fuel in this country.

The restart of this major consumer of wheat has boosted the local grain market as well as improving supplies of animal feed.

The Vivergo plant in East Yorkshire is the UK’S largest, and Europe’s second largest producer of bioethanol. It was closed down late last year when fuel prices were depressed and there was uncertainty over future government policies for renewable energy.

But the passing of the Renewable Transport Fuel Obligation (RTFO) by the UK government last month, committing this country to increasing the percentage of biofuel in petrol, has been seen by Mark Chesworth, managing director of Vivergo as a positive step forward.

He said he would now like the government to take further action on “green” fuel with the introduction of E10 which is a more environmentallyfriendlyblend of 10 per cent renewable bioethanol with petrol; a mix which can lower emissions from vehicles.

He said it was commonly used across North America, Europe and Australasia and introducing it in the UK could bring carbon emissions savings equivalent to taking 700,000 cars off the road.

Chesworth said: “We are pleased to see the RTFO pass through Parliament. This step, combined with the completion of maintenance work, has prompted us to recommence production after being offline over the winter period.

“In terms of investment, our £350 million plant was predicated on the UK government’s commitment to the Renewable Energy Directive enacted though to transport fuel to the RTFO, and anticipated the UK market would be twice what it is today by now.

“Government inertia in developing legislation on this situation has further undermined confidence in renewables investment.”

The restart of Vivergo’s plant has major implications for the agricultural community. Many farms in the region who supplied the plant with feed wheat were directly affected by the shutdown.

In addition to providing a market for their grain that would have otherwise been exported at a lower price, Vivergo supplies farms in the UK with high-protein animal feed after the bioethanol has been extracted.

The plant can produce up to 420 million litres of bioethanol annually from just over one million tonnes of feed wheat. It is also the country’s largest single production site for animal feed.