The United Kingdom government has approved a £100 million support package to keep a key ethanol facility on standby, aiming to safeguard domestic supplies of carbon dioxide (CO₂) and support essential industries.
The funding will support Ensus UK Ltd, a subsidiary of CropEnergies AG, which operates a large biorefinery in Teesside. The plant suspended operations in September 2025 due to economic pressures but remains the country’s last major industrial biorefinery.
The support, cleared by the UK Department for Business and Trade, is aimed at ensuring the facility can restart quickly when needed. The plant can produce up to 400 million litres of bioethanol annually and capture around 250,000 tonnes of CO₂, which is used across sectors including food, healthcare and manufacturing.
Concerns over CO₂ availability have grown as the UK has become more dependent on imports, especially after disruptions to fertiliser production in Europe and global supply chain challenges. The shutdown of a similar plant run by Associated British Foods in 2025 further tightened domestic supply.
Industry conditions were also affected by a trade deal with the United States that removed tariffs on American ethanol imports, making local production less competitive.
With the funding in place, CropEnergies said the plant is expected to resume operations when market conditions improve. The company said the move would support jobs, strengthen the local economy and improve supply security.
The government is also considering longer-term steps to support the ethanol sector, including wider use of E15 fuel and allowing agricultural biomass in sustainable aviation fuel production.
