Business
Bioethanol plant deems lack of Government support an ‘act of economic self-harm’
The UK’s largest bioethanol plant has described a Government decision not to offer direct funding to the industry as “a flagrant act of economic self-harm” which will force it to close.
Vivergo Fuels, near Hull, warned earlier this year that it was in imminent danger of closure as crisis talks continued with the Government.
This followed the end of the 19% tariff on American bioethanol imports as part of the recent UK-US trade deal.
On Friday, the Government said: “This Government will always take decisions in the national interest.
“That’s why we negotiated a landmark deal with the US which protected hundreds of thousands of jobs in sectors like auto and aerospace.
“We have worked closely with the companies since June to understand the financial challenges they have faced over the past decade, and have taken the difficult decision not to offer direct funding as it would not provide value for the taxpayer or solve the long-term problems the industry faces.
“We recognise this is a difficult time for the workers and their families and we will work with trade unions, local partners and the companies to support them through this process.
“We also continue to work up proposals that ensure the resilience of our CO2 supply in the long-term in consultation with the sector.”
Ben Hackett, managing director of Vivergo Fuels, said: “The Government’s failure to back Vivergo has forced us to cease operations and move to closure immediately.
“This is a flagrant act of economic self-harm that will have far-reaching consequences.
“This is a massive blow to Hull and the Humber.
“We have fought from day one to support our workers and we are truly sorry that this is not the outcome any of us wanted.
“This decision by ministers will have a huge impact on our region and the thousands of livelihoods in the supply chain that rely on Vivergo, from farmers to hauliers and engineers.”
Mr Hackett said the industry has faced “unfair regulations” for years that favoured overseas producers, and the recent US-UK trade deal pushed the sector “to the point of collapse”.
He said: “We did everything we possibly could to avoid closure, but in the end it was the Government that decided the British bioethanol sector was something that could be traded away with little regard for the impact it would have on ordinary hard-working people.
“We did not go down without a fight and I hope that the noise we generated over the past three months will make the Government think twice before it decides to sign away whole industries as part of future trade negotiations.”
A spokesman for Associated British Foods, which owns Vivergo, said: “It is deeply regrettable that the Government has chosen not to support a key national asset.
“We have been left with no choice but to announce the closure of Vivergo and we have informed our people.
“We have been fighting for months to keep this plant open.
“We initiated and led talks with Government in good faith. We presented a clear plan to restore Vivergo to profitability within two years under policy levers already aligned with the Government’s own green industrial strategy.”
The spokesman said the Government had “thrown away billions in potential growth in the Humber and a sovereign capability in clean fuels that had the chance to lead the world”.
The bioethanol industry, which also includes the Ensus plant on Teesside, has argued the trade deal, coupled with regulatory constraints, has made it impossible to compete with heavily subsidised American products.
Vivergo said the Hull plant, which employs about 160 people, can produce up to 420 million litres of bioethanol from wheat sourced from thousands of UK farms.
It has described bioethanol production as “a key national strategic asset” which helps reduce emissions from petrol and is expected to be a key component in sustainable aircraft fuel in the future.
The firm recently signed a £1.25 billion memorandum of understanding with Meld Energy to anchor a “world-class” sustainable aviation fuel facility at the site.
But Meld Energy said earlier this month uncertainly over the bioethanol industry was putting this plan in jeopardy.
The Vivergo plant is also the UK’s largest single production site for animal feed, and the company says it indirectly supports about 4,000 jobs in the Humber and Lincolnshire region.
Vivergo has said it buys more than a million tonnes of British wheat each year from more than 4,000 farms, and has purchased from 12,000 individual farms over the past decade.
But it took its last wheat shipment earlier this month.
The farmers’ union described the imminent closure of the Vivergo plant as a “huge blow”.
NFU combinable crops board chairman Jamie Burrows said: “Not only is it terrible news for those hundreds of workers who will lose their jobs but also for the thousands of people whose livelihoods depend on this supply chain – that includes local farmers who have lost a vital market for their product.”
The Ensus plant in Teesside differs from the Vivergo operation because it also produces CO2 as part of the process.
Ensus, which is owned by CropEnergies, part of the German firm Sudzucker, is the UK’s only large scale manufacturer of CO2, which is used in a wide range of sectors, including in drinks and the nuclear industry.
Grant Pearson, chairman of Ensus UK, said on Friday: “I met with Sarah Jones, the minister for business, today, to receive the Government’s response to our request for financial support and the policy changes required to ensure that the Ensus facilities can continue to operate.
“The minister confirmed that they value both our contribution to the UK economy, the jobs we provide and support in the north east of England and in particular our production of biogenic CO2 which is a product of critical national importance.
“They are therefore looking at options to secure an ongoing supply of CO2 from the Ensus facility.
“This is positive news, however it is likely to take time to agree upon and finalise and therefore urgent discussions will be taking place to provide a level of assurance to the Sudzucker and CropEnergies’ boards that there is a very high level of confidence that an acceptable long-term arrangement can be reached.”
Energy markets have seen wild swings since the US and Israel attacked Iran on 28 February.
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Gold and silver prices declined in both international and domestic markets, reflecting a broader downward trend in precious metals.
In the international bullion market, the price of gold fell by $49 per ounce, settling at $4,788.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), in the local market, gold prices also recorded a significant drop. The price per tola decreased by Rs4,900 to reach Rs501,162. Similarly, the price of 10 grams of gold declined by Rs4,201, settling at Rs429,665.
Silver prices also followed a downward trajectory. The price per tola of silver fell by Rs145 to Rs8,417 while the price of 10 grams of silver dropped by Rs124, reaching Rs7,216.
Read More: Gold, silver prices rise again in local and international markets
Gold and silver prices recorded an increase on Saturday in both international and local markets after declining on Friday, following a three-day upward trend in global and domestic markets.
According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), in the international bullion market, the price of gold rose by $45 per ounce to reach $4,837. In the local market, the price of gold per tola increased by Rs4,500 to Rs506,062, while the rate for 10 grams rose by Rs3,858 to Rs433,866.
Silver prices also moved higher, with the per tola rate increasing by Rs118 to Rs8,562. Similarly, the price of silver per 10 grams rose by Rs101 to Rs7,340.
Business
Stocks to buy: What’s the outlook for Nifty for April 20-April 24 week? Check list of top stock recommendations – The Times of India
Stock market recommendations: APL Apollo Tubes, and HDFC Asset Management Company are Sudeep Shah, Head – Technical Research and Derivatives, SBI Securities’ top stock picks for this week. Below are his stock picks and also views on Nifty.Nifty ViewThe benchmark index Nifty continues to inch higher; however, this phase of the rally is notably different, as the spotlight has shifted away from the headline index. While Nifty has extended its pullback rally for the second consecutive week and closed in the green, the real strength is emerging beneath the surface. The broader markets have taken the lead, with Nifty Midcap 100 and Nifty Smallcap 100 delivering a robust rally and clearly outperforming the frontline index. Both indices have decisively moved above their key moving averages, signalling trend strength, whereas Nifty is still trading below its 100day and 200day EMA. Most importantly, Nifty Midcap 100 is now just a short distance away from its alltime high, suggesting that the next leg of opportunity may be unfolding beyond the conventional largecap space.Focusing back on Nifty, the index has been sustaining above its 50day EMA for the last three trading sessions, while the 20day and 50day EMA have started to edge higher, reflecting improvement in the shortterm trend. Meanwhile, the downward momentum in the 100day and 200day EMA has slowed considerably, indicating a stabilisation in the mediumterm structure. Momentum indicators further support the constructive bias, with the daily RSI trading above the 57 mark and moving higher, and the daily MACD histogram signalling strong bullish momentum.Collectively, these technical factors suggest that the pullback rally is likely to continue in the short term. On the upside, the 24650–24700 zone is expected to act as a crucial hurdle for the index. A sustainable breakout above 24700 could lead to an extension of the pullback rally towards 25000, followed by 25200 in the near term. On the downside, the 24050–24000 zone will serve as immediate support, and as long as the index remains above the 24000 mark, the ongoing pullback rally is likely to stay intact.Bank Nifty ViewThe banking benchmark Bank Nifty also ended the week on a positive note, indicating the continuation of its ongoing pullback rally. However, over the last three trading sessions, the index has struggled to decisively cross its 200day EMA, suggesting a phase of consolidation near a key long-term resistance zone. This price behaviour reflects hesitation at higher levels and points towards a pause in momentum after the recent recovery.This consolidation largely indicates a degree of caution among market participants, as investors appear to be awaiting clarity on the Q4 earnings outcome of major banking heavyweights, namely ICICI Bank and HDFC Bank. With both results scheduled over the weekend, the index is likely to witness a directional move post the earnings announcements, depending on earnings performance and management commentary.From a technical perspective, the index continues to maintain a constructive short-term setup, as it is trading above its 20day and 50day EMA, reflecting underlying strength. Momentum indicators remain supportive, with the daily RSI placed above the 55 level and trending higher, suggesting improving buying momentum and positive shortterm bias.Looking ahead, the 57000–57100 zone is expected to act as a crucial resistance area, as it coincides with both the prior swing high and the 100day EMA, making it an important supply zone. A sustainable move above 57100 could lead to a further extension of the pullback rally towards 57800, followed by 58500 in the short term. On the downside, the 55800–55700 zone is placed as an important support band, and any dip towards this region is likely to attract buying interest as long as the structure remains intact.Stock recommendations:APL Apollo TubesAPL Apollo Tubes has shown strong bullish intent after a 14.5% pullback from its early April lows near the 200-day EMA, indicating solid support at lower levels. The recent consolidation between 2072–1961 acted as a base, with the stock now delivering a decisive breakout on strong footing. A positive DI crossover on ADX signals clear buyer dominance, while the MACD nearing a move above the zero line with rising histogram bars points to strengthening momentum.The overall setup suggests the stock is well-positioned to extend its uptrend in the near term. Hence, we recommend to accumulate the stock in the zone of 2110-2090 with a stoploss of 2020. On the upside, it is likely to test the level of 2255 in the short term.HDFC Asset Management CompanyHDFC Asset Management Company has exhibited strong bullish momentum, closing Friday’s session with an impressive 4.89% gain. The stock has surged nearly 26% from its March lows, indicating robust buying interest. Momentum indicators remain firmly supportive, with RSI sustaining above 60, reflecting strength. Additionally, a positive DI crossover on ADX highlights clear buyer dominance, while rising MACD histogram bars with the MACD line above the zero mark further reinforce the ongoing uptrend. The overall structure suggests the stock is well-positioned to extend its upward trajectory. Hence, we recommend to accumulate the stock in the zone of 2800-2770 with a stoploss of 2690. On the upside, it is likely to test the level of 2990 in the short term.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
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