The UK’s domestic bioethanol industry is warning of severe consequences following a new trade agreement with the United States that removes a 19% tariff on imported US bioethanol. Industry leaders say the move, announced on May 8, threatens to undercut local production and could lead to the closure of the country’s two remaining bioethanol plants, reports Fastmarkets.
Vivergo, based in Saltend near Hull, and Ensus, located in Teesside, produce around 840 million liters of bioethanol annually — enough to meet 95% of the UK’s current petrol requirements, based on a 5.5% blend rate. If petrol blending increased to 10%, these plants would still supply around half of the demand, according to the Renewable Transport Fuel Association (RTFA).
Executives from ABF Sugar, which owns Vivergo, and Crop Energies, which owns Ensus, have publicly condemned the tariff removal. In a joint statement issued on May 11, they warned that the policy could force both plants to shut down, saying, “This vital sector is now facing imminent collapse because of the trade deal… In our current situation, we will have to close these plants.”
They also pointed out that both facilities are capable of producing sustainable aviation fuel (SAF) through an alcohol-to-jet pathway — a key part of the UK government’s decarbonisation strategy. The government’s SAF mandate, signed into law in late 2024, requires jet fuel to include 2% SAF by 2025, rising to 10% by 2030 and 22% by 2040.
“But without a stable domestic ethanol base, one promising route for British SAF production will struggle to take off,” the executives said.
The RTFA also raised concerns about the wider economic fallout, particularly for agriculture. Vivergo is a major buyer of feed wheat in northeast England, and its closure could significantly impact local farmers. The plant also produces animal feed, offering a home-grown alternative to imported soya-based products.
“The decision has major repercussions not just for the staff at the two large UK bioethanol plants who now face a very uncertain future, but for the wider supply chains that these plants support,” the RTFA said in a social media post on May 12.
The RTFA further warned that if domestic ethanol production shuts down, the UK will have to rely entirely on imported bioethanol to meet fuel standards, which require petrol to contain at least 5.5% ethanol.
“Any change in future US bioethanol availability could then leave the UK with serious fuel security issues if our industry has already closed,” the group added.
The UK began importing significantly more US ethanol after adopting the E10 fuel standard (up to 10% ethanol) in September 2021. By 2024, US imports made up nearly half of all bioethanol supplied in the UK — 701 million liters, or 48.6% of the total, according to provisional government data.
That’s up from 626 million liters in 2023 (44.5%) and 343 million liters in 2022 (27.6%). The trend reflects the growing role of US ethanol in the UK market since the country left the EU and its former trade protections, including anti-dumping duties on US ethanol.
Ensus, which uses corn as its main feedstock, has faced production cuts in recent years due to poor margins. Its parent company, Crop Energies, announced in 2023 a €100 million investment plan to improve profitability and reduce emissions at the facility. However, the new trade deal casts uncertainty over those plans.
Meanwhile, Vivergo, which also uses sugar as a feedstock, has had inconsistent output in recent years but was nearing full production capacity in 2022, according to AB Sugar.
With domestic producers under pressure and rising reliance on imported ethanol, stakeholders are urging the government to reconsider the trade deal’s implications before long-term damage is done to a sector they say is vital to both the environment and the economy.
