When the trade agreement between the United States and the UK was announced last month, Prime Minister Sir Keir Starmer placed great emphasis on its value to the UK car industry and highlighted that it would not affect British food standards.
Less attention was paid to the decision to make concessions to the US with regard to its exports of bioethanol with agreement to remove a 19% tariff.
However, that aspect of the agreement has now been brought into sharp focus as the UK’s two largest producers of bioethanol have warned that the removal of tariffs on US imports could leave them unable to compete.
Ensus in Teesside and Vivergo Fuels in Hull have called for immediate support to safeguard them from closure and to protect the hundreds of workers they directly employ and the thousands they support across their supply chains — including farmers, engineers and hauliers.
Vivergo said: “Unfortunately, if there is no Government intervention in the next few weeks, our plant will have to close. That is because the Government has made a series of decisions that undercut UK ethanol production in favour of US imports. The most recent trade deal was the final blow.”
The British Chambers of Commerce (BCC) has joined the call for Government support, arguing that it is needed to maintain energy security, and uphold the UK’s transition to low-carbon fuels. Ethanol is used as a raw material for sustainable aviation fuel (SAF) and as a component in unleaded petrol.
Grant Pearson, Chairman of Ensus UK, said: “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.”
British Chambers of Commerce
The British Chambers of Commerce (BCC) sits at the heart of a business network that spans the length and breadth of the UK, with links to markets across the world.
