The biofuel plant processes more than 1.1m tonnes of wheat from around 900 farms across Yorkshire, and employs 150 people has been hit by the government's alleged dithering on renewable fuel policy.This means Northern arable farmers have lost a key customer for feed wheat when it ceases production of bioethanol for good at the end of the monthimage expired

The National Farming Union’s regional director for the North East, Adam Bedford, said he was saddened hear the news and was worried for the future of its suppliers.

“The 1.1m tonnes of wheat processed by Vivergo represents a significant proportion of UK feed wheat production and an even higher proportion of Yorkshire’s output," he said.

“As a result, its loss will be keenly felt by growers across our region, whose grain will now have to find its way into other domestic feed wheat markets across the North East.

“Given that the news comes at a time when the industry is already under significant pressure thanks to this year’s weather extremes, this news will come as another body blow.”

Tom Bradshaw, NFU’s combinable crops board chairman, said: “Our sympathy is with Vivergo employees who face an uncertain future as a result of the planned closure of its plant.

“Unfortunately, the biofuel industry has suffered for a number of years following government procrastination on renewable fuel policy. The private sector has invested hundreds of millions of pounds on the premise of a supportive policy, only to be let down by government back-tracking.

“E10 petrol needs to be embraced, particularly as it is a clear match for the green Brexit the government is trying to deliver. We continue to call on the government to fast-track the introduction of E10 to the UK fuel mix.”

Vivergo currently contributes around £600m to the UK economy and its closure would come as a massive blow to the country’s biofuel ambitions.

Mark Chesworth, managing director at Vivergo Fuels Ltd, said: “I am extremely disappointed at having to make this difficult choice to plan to cease production as of September 30 at the Vivergo Fuels plant"

"My employees are my number one concern at this time and we have entered into consultation with them".

Hull East MP Karl Turner said on twitter that the government was "not being serious" about the Northern Powerhouse idea.In two tweets he said: "As Shadow Minister, I’ve pleaded with Govt Ministers numerous times for them to mandate E10 fuel to help tackle climate change. Govt are not serious about the so called ‘Northern Powerhouse’. We can’t afford to lose skilled jobs in this region."