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US-UK Trade Deal Pushes UK Bioethanol Plants to Brink

Ensus alongside Vivergo Fuels have demanded urgent government support to stave off imminent shutdown that would cut domestic CO₂ supplies, risking thousands of jobs.

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The Ensus plant on Teesside is at risk of closure in the wake of the US-UK trade deal
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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.