UK business leaders have warned that the UK Government abandoning Britain’s bioethanol sector by removing tariffs on US ethanol imports will be felt across multiple sectors, including agriculture, food & drink, and nuclear power generation.
The British Chambers of Commerce (BCC) issued the warning overnight after the UK signed a trade deal with the United States last month that scrapped a 19% tariff on imported ethanol.
While the deal was welcomed by the automotive and steel industries, UK-based biotheanol producers Vivergo Fuels and Ensus warn that it could leave them unable to compete with cheaper US imports.
Vivergo’s plant at Saltend, Hull, supports over 4,000 jobs directly and through its supply chain. Ensus, based in Teesside, is another major contributor to the UK's sustainable fuel infrastructure and employment.
Both companies have warned that government support is now essential to prevent closures and protect future investment.
“Bioethanol production plays a vital role in the UK’s transition to clean energy and supports thousands of jobs across Teesside and the Humber,” said BCC director general Shevaun Haviland.
“Targeted government support is needed to safeguard this sector’s future and maintain investor confidence.”
Bioethanol is used in petrol blending, sustainable aviation fuel, and numerous industrial processes, from solvents to hospital-grade cleaning agents. The BCC highlighted that removing domestic supply capacity risks damaging a wide range of industries and slowing the UK’s energy transition.
Other experts have warned that side effects of damaging the bioethanol industry's supply would also hit production of CO₂ and high-protein animal feed, both byproducts of bioethanol processing.
“The consequences will be felt across multiple sectors, including agriculture, the food and drink industry, hospital operating theatres, nuclear power generation, and the development of sustainable aviation and maritime fuels," said Grant Pearson, chairman of Ensus UK
The BCC said the issue will be addressed at its global annual conference in June, where senior policymakers and central bank leaders will meet industry representatives to discuss the future of the UK’s bioeconomy.