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UK bioethanol producers warn US trade deal threatens thousands of jobs

2 June 2025
in Business
Reading Time: 3 mins read
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UK bioethanol producers warn US trade deal threatens thousands of jobs
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Two of Britain’s largest bioethanol producers have issued stark warnings that a recent UK-US trade deal could trigger site closures and significant job losses across the sector, unless the government intervenes with targeted support.

The concerns centre on the removal of a 19 per cent tariff on US ethanol imports as part of the transatlantic trade agreement, which industry leaders say is putting British manufacturers at a competitive disadvantage.

Vivergo Fuels, a Hull-based facility owned by Associated British Foods (ABF), and Ensus, a German-owned bioethanol plant in Redcar, have both said the influx of cheaper US imports could undermine domestic operations and put thousands of jobs at risk.

Ben Hackett, managing director of Vivergo Fuels, warned that the continued pressure from low bioethanol prices — now intensified by the lifting of the import tariff — could force ABF to close the Hull site, jeopardising up to 4,000 jobs locally and across the supply chain.

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

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