The UK’s two remaining bioethanol plants are at risk of closure following the government’s trade deal with the United States, which removes tariffs on US ethanol imports.
The agreement, signed on 8 May, allows up to 1.4 billion litres of American ethanol into the UK tariff-free, matching the UK's total annual demand.
Industry groups warn this will flood the market and undercut domestic producers, unless government support is secured by the end of June.
The Renewable Transport Fuel Association, along with other trade bodies, cautioned that closures would disrupt supply chains for CO₂ and animal feed, harm farmers, and damage investment confidence.