UK Bioethanol Industry At Risk

The British Chambers of Commerce (BCC) has urged the Government to swiftly act to protect Britain’s domestic bioethanol industry.

It follows warnings from the UK’s two largest producers that the removal of tariffs on US imports could leave them unable to compete.

Vivergo Fuels in Hull and Ensus in Teesside are calling for immediate support to safeguard the hundreds of workers they directly employ, and the thousands of livelihoods they support across their supply chains – including farmers, engineers, and hauliers.

The threat stems from the UK-US trade deal, which removed a 19% tariff on US ethanol imports. While the agreement delivers clear benefits for industries such as automotive and steel, it also poses serious risks to the UK’s domestic bioethanol industry.

Ethanol has a range of uses as a raw material for sustainable aviation fuel and a component in unleaded petrol, solvents, cleaning agents and beyond.

Last week, Vivergo Managing Director Ben Hackett cautioned that without targeted support, its Saltend plant could be forced to shut down. The site is a major driver of regional employment, supporting over 4,000 jobs directly and through its supply chain – the majority in the Yorkshire and Humber region. Ensus, based in the North East, plays a similarly vital role in supporting green jobs and supplying sustainable fuels across the UK.

The BCC has welcomed the broader benefits of the new trade agreement, signed by Prime Minister Keir Starmer, but is calling on the Government to ensure that the UK’s bioethanol sector is not left behind. Targeted support is needed, they argue, to preserve thousands of jobs, maintain energy security, and uphold the UK’s transition to low-carbon fuels.

The future of biofuels will feature in the BCC Global Annual Conference this June, where senior politicians and Bank of England Governor, Andrew Bailey, will be among the headline speakers. Representatives from the bioethanol industry are also expected to attend.

Shevaun Haviland, Director General of the British Chambers of Commerce, said:

“Bioethanol production plays a vital role in the UK’s transition to clean energy and supports thousands of jobs across Teesside and the Humber.

“While the recent trade deal with the US brings opportunities for automotive and steel, it also creates challenges for our bioeconomy.

“Targeted government support is needed to safeguard this sector’s future and maintain investor confidence as we work toward our environmental and economic goals.”

Ben Hackett, Managing Director of Vivergo Fuels, said:

“Bioethanol has a vital role to play in transport decarbonisation and clean energy development for decades to come.

“UK bioethanol production supports thousands of jobs and businesses across the supply chain, and the impacts will be keenly felt if the government does not act to support this critical industry.

“We are encouraged by the engagement we have had from ministers and now need to see those warm words matched with concrete support.”

Grant Pearson, Chairman of Ensus UK, said:

“We continue to engage with the government to highlight the significant impact this deal is likely to have on bioethanol production in the UK.

“The consequences will be felt across multiple sectors — including agriculture, the food and drink industry, hospital operating theatres, nuclear power generation, the development of sustainable aviation and maritime fuels, as well as undermining the UK’s potential to decarbonise its chemical industry.”

David Hooper, External Affairs Director for Hull & Humber Chamber of Commerce, added:

“We have worked with Vivergo for years and helped them make their case to the Government, and now we’ve reached another crunch point, because of tariffs, for a business which employs 160 staff locally.

“We need decisive action from the Government now before investments go elsewhere – time is running out fast.”