Vivergo Fuels Ltd has confirmed it will cease production due to a difficult trading environment.
The company, which sources from 900 farms, also blamed delays in the implementation of E10 in the UK.
Vivergo Fuels proposed cessation of production is the 30 September.
Mark Chesworth, Managing Director of Vivergo Fuels Ltd said he is “extremely disappointed”.
“We have created a highly skilled and world-class business that had the opportunity to be part of a British sustainable biofuels industry,” he said
“But sadly, the Government’s lack of pace over the past decade to introduce E10 has further undermined our ability to operate.
“My employees are my number one concern at this time and we have entered into consultation with them.
Mr Chesworth added: “I would like to take this opportunity to thank our workforce, past and present partners, growers and customers for their support since the creation of our plant in 2007.”
Vivergo Fuels formed in 2007. The business was started as a Joint Venture between AB Sugar, BP and Du Pont – to help deliver a sustainable and significant portion of the UK’s forecast biofuel demand.
Vivergo Fuels’ plant is the UK’s largest and Europe’s second largest producer of bioethanol, a low-carbon renewable transport fuel which is blended with petrol.
The bioethanol plant can product up to 420 million litres of bioethanol and the bioethanol is made from 1.1 million tonnes of feed wheat, sourced from nearly 900 farms mostly across the East and North Yorkshire and Northern Lincolnshire regions.
It is also the country’s largest single production site for animal feed, delivering 500,000 tonnes of high protein feed to over 800 farms across the UK.
