Overview
- The Economic Prosperity Deal removed a 19 percent tariff on 1.4 billion litres of US bioethanol, flooding the UK market with low-cost imports equivalent to national demand.
- Ensus and Vivergo Fuels have warned of imminent closure without a rescue package, with Ensus facing a maintenance funding decision in weeks and Vivergo setting a two-week deadline before redundancy talks.
- Plant closures would eliminate over 100 direct roles at Ensus, threaten about 3,000 supply-chain jobs, and halt production of high-purity CO₂ used by the NHS, food and drink and nuclear industries.
- Business and Trade Secretary Jonathan Reynolds has held talks with industry leaders under growing pressure from MPs, including Tees Valley Mayor Ben Houchen, to secure a solution.
- Producers are calling for targeted subsidies and policy reforms—such as raising petrol ethanol blends to E15, expanding aviation and maritime biofuel mandates, and introducing domestic quotas—to restore competitiveness.