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AB Foods holds off bioethanol plant closure decision until June 25
Published by Global Banking & Finance Review®
Posted on June 11, 2025
1 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on June 11, 2025
1 min readLast updated: January 23, 2026
AB Foods delays the closure of its Vivergo bioethanol plant until June 25, seeking government support amid challenging market conditions.
LONDON (Reuters) -Associated British Foods said on Wednesday its under threat Vivergo bioethanol plant in Hull, northern England, will cease purchasing the wheat feedstock required for its production but will hold off other closure decisions until June 25.
"That short extension is intended to give space for (government) departments to work up options - but time is very limited, and we are clear that any further delay will require financial support from the government," AB Foods said in a statement.
The group has warned that last month's U.S.-UK trade deal, which will see the UK's 19% tariffs on U.S. ethanol fall to zero, on top of existing regulations giving overseas producers an advantage in the British market, have made the operating environment impossible.
(Reporting by James Davey; editing by Michael Holden)
AB Foods has decided to delay the closure decision of its Vivergo bioethanol plant until June 25.
The postponement is intended to allow government departments time to explore options, but the timeframe is limited.
The U.S.-UK trade deal will eliminate the UK's 19% tariffs on U.S. ethanol, which could disadvantage local producers.
AB Foods has indicated that any further delay in the decision will necessitate financial support from the government.
The Vivergo bioethanol plant is located in Hull, northern England.
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