December 5 (Renewables Now) - Vivergo Fuels, UK's largest and Europe's second largest bioethanol producer, said Monday it has decided to shut down its plant "for the foreseeable future".
The company said the decision has been taken due to legislative uncertainty and a decline in bioethanol prices over the past six weeks, which has further hurt profit margins.
Vivergo Fuels says the UK bioethanol market remains constrained by government inaction and warns that the absence of a roll-out framework for E10 in the country could have serious consequences for the long-term future of the domestic industry.
The company's GBP-350-million (USD 469m/EUR 396m) plant in East Yorkshire can produce up to 420 million litres (111 million gallons) of bioethanol. It uses locally sourced feed wheat as feedstock.
Vivergo Fuels will bring forward and extend annual maintenance work to maintain staff levels. It said it will closely monitor the market ahead of any resumption of operations.
(GBP 1 = USD 1.341/EUR 1.130)