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Vivergo Fuels

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Vivergo Fuels
IndustryBio-fuels manufacture
Animal feeds
HeadquartersHessle,
East Riding of Yorkshire
,
England
Number of locations
2
Key people
Mark Chesworth (Managing Director)[1]
ProductsE5
Revenue£42 million[2] (2015–2016)
Owners
Number of employees
150[3] (2018)
WebsiteOfficial website

Vivergo Fuels is a bio-ethanol producer, headquartered in Hessle, East Riding of Yorkshire, but whose plant is based at Salt End, Kingston upon Hull, England. The company produces bio-fuels from locally sourced wheat and besides producing bio-ethanol, a by-product of animal feed is also part of the bio-fuel process. The company's plant was subject to a shutdown between November 2017 and April 2018 whilst demand for their product was low. The company blamed the United Kingdom government for not ruling that bio-fuel additives to petrol should be greater than 4.75%.

It is the largest manufacturer of bio-ethanol in the United Kingdom and the second largest producer in Europe.[3]

History

Vivergo was first proposed in 2007 as a joint venture between AB Sugar, BP and DuPont. The company had £350 million ($400 million) invested into it and opened for business in July 2013,[4][5] with both AB Sugar and BP taking a 47% share and DuPont the remaining 6%.[6] In May 2015, BP pulled out of the venture and sold its stake to AB Sugar, giving them 94% of the company.[7][8]

The construction phase was beset by industrial action in March 2011; Vivergo had employed a company to build the plant, but it was behind schedule and so fired the company and sought another contractor to complete the task. This left 400 workers unemployed and the GMB union believed that Vivergo should continue to employ the workers whilst the search for a new contractor was completed.[9] Redhall, a Wakefield-based company, was awarded the £18 million contract to design and build the plant in February 2010. The project was to have been completed by the end of 2010, but by the time of the industrial action, it was four months behind schedule.[10] Redhall later successfully sued Vivergo for breach of contract.[11]

The company receives over 1,100,000 tonnes (1,200,000 tons) of wheat per year and from that produces 420,000,000 litres (92,000,000 imp gal; 110,000,000 US gal) of bio-ethanol with 500,000 tonnes (550,000 tons) of animal feed as by-product. The wheat is sourced from over 900 farms across Yorkshire and Lincolnshire with the bulk coming from the East Riding of Yorkshire. Wheat sourced from this region is high in starch which makes it ideal to process into bio-ethanol.[12] The animal feed is sold on to over 800 farms across the United Kingdom. When the plant was opened, Frontier Agriculture had an exclusive contract to supply the transport from farms to the Vivergo plant.[13]

The plant was deliberately located on the Humber Estuary to take advantage of the ability of the east coast ports to export bulk liquids via ship-borne transport. Its location close to the major wheat producing areas in eastern England made it ideal. The next rival in terms of bio-fuels in the United Kingdom, is the Ensus plant on Teesside, which whilst producing less bio-ethanol and animal feed, also produces over 300,000 tonnes (330,000 tons) of carbon dioxide gas for the drinks industry, something that Vivergo does not.[14] This makes Vivergo the largest producer of bio-ethanol in the United Kingdom and the second largest producer in Europe.[15]

Closure

In November 2017, the plant was subject to an enforced closure by the company. Vivergo claimed that the business was unsustainable due to the government not adhering to its own Renewable Transport Fuel Obligation (RTFO) policy. Currently, the company produces E5, an up 5% blending product that is meant to be mixed with petrol in a 5:95% mix.[16] Vivergo wish to produce E10, this would see an increase from 4.75% bio-fuels additives into petrol to 9.75% by 2020. After some government debate and agreement, the RTFO was adopted by the government, and was implemented in April 2018. The plant re-opened for business in April 2018[1] with E10 becoming law by 2020.[17]

References

  1. ^ a b "Biofuels plant reopens after law change". BBC News. 11 April 2018. Retrieved 24 April 2018.
  2. ^ Kilgannon, Laurence (4 April 2016). "Vivergo bosses optimistic despite loss". Insider Media Ltd. Retrieved 24 April 2018.
  3. ^ a b Bridgen, Mark (15 April 2018). "Vivergo bioethanol plant re-opens after four-month shutdown". Darlington and Stockton Times. Retrieved 24 April 2018.
  4. ^ Harvey, Fiona (8 July 2013). "Biofuels plant opens to become UK's biggest buyer of wheat". The Guardian. Retrieved 24 April 2018.
  5. ^ Scargill, Paul; Potter, Katie. "2013 Environmental Statement" (PDF). bp.com. p. 23. Retrieved 24 April 2018.
  6. ^ "ABF acquires BP's Vivergo Fuels stake". Insider Media Ltd. 7 May 2015. Retrieved 24 April 2018.
  7. ^ "BP sells stake in Vivergo to ABF". The Yorkshire Post. 7 May 2015. Retrieved 24 April 2018.
  8. ^ Bounds, Andy; Tighe, Chris (6 December 2017). "Investors lose hundreds of millions as UK biofuels industry stalls". Financial Times. Retrieved 24 April 2018.
  9. ^ "Union criticises protest policing". BBC News. 4 May 2011. Retrieved 24 April 2018.
  10. ^ "Redhall celebrates £18m deal for fuel site". The Yorkshire Post. 4 February 2010. Retrieved 24 April 2018.
  11. ^ "Redhall agrees £1.2m settlement". The Yorkshire Post. 20 April 2011. Retrieved 24 April 2018.
  12. ^ "Biofuel plant 'to boost farming'". BBC News. 7 March 2012. Retrieved 24 April 2018.
  13. ^ Hayes, Julie (12 November 2010). "Pocklington farmer heralds bio-fuel plant". York Press. Retrieved 24 April 2018.
  14. ^ Halford, Nigel G (2015). "2.45: Bioethanol from Wheat, the United Kingdom Experience". An Introduction to Bioenergy. London: Imperial College Press. p. 53. ISBN 978-1-78326-623-4.
  15. ^ Barnett, Ben (5 December 2017). "Farmers hit by Hull fuel plant shutdown". The Yorkshire Post. Retrieved 24 April 2018.
  16. ^ "Bioethanol plant shuts down ahead of schedule due to poor market". The Yorkshire Post. 16 November 2017. Retrieved 24 April 2018.
  17. ^ Farrell, Stephen (11 April 2018). "Production resumes at Vivergo Fuels' Hull plant". Insider Media Ltd. Retrieved 24 April 2018.
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