Government will not offer bailout to UK's largest bioethanol plant
Owners Vivergo, a subsidiary of Associated British Foods, had warned that the plant would close without government support, and sources at the company have told Sky News the wind-down process is now likely to begin.
An ABF spokesperson, which also owns Primark, said the government's decision was "deeply regrettable" and it had "chosen not to support a key national asset".
Seems to be a "key national asset" in the sense that Ed Miliband is a key national asset.
Government sources said they had employed external consultants to provide advice, and pointed out that the plant had not been profitable since 2011.
Government sources said they had employed external consultants to provide advice, and pointed out that the plant had not been profitable since 2011.
6 comments:
According to the article a major factor was: "industrial energy prices, the highest among developed economies". Presumably they couldn't generate enough of their own power from the fuel they were making themselves, then? Or it would cost more to do it that way than to buy in the admittedly overpriced energy, at least. So the scheme is fundamentally and obviously economically non-viable. The shareholders of ABF need to take note of the quality of the management there.
First rule of business: If it is not worthwhile, don't do it.
Second rule of business: If you need government subsidies your business is not worthwhile.
Not at all sure what to think about this one, AKH … a bit over the head.
Barbarus - that's a good point, tells us it couldn't be viable anyway. A sewage works can generate methane from sewage sludge and use it to power the digestion process, but the raw material is effectively free.
DJ - it's a pity our governments don't stick to the second rule, it would save a colossal amount of waste.
James - a bit obscure, but alcohol and sustainable power - both moonshine.
So since 2011, 14 years, they have been running a charity, or a not-for-profit business at the expense of every other part of their conglomorate.
Surely there is a place in government, or the civil service, or some Qango for these chancers.
Doonhamer - I'm sure there are places for the top bods, but those who keep the plant running may not be so lucky.
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