UK Largest Bioethanol Plant Warns Closure Without Government Intervention After US Trade Deal

Vivergo Fuels, the UK's largest bioethanol plant based near Hull, is warning it will be forced to close unless the government intervenes to address the impact of the recent UK-US trade deal, which removed a 19% tariff on US ethanol imports. The plant, which employs over 160 people and supports around 4,000 livelihoods in its supply chain, says it cannot compete with heavily subsidized American ethanol and will have to cease purchasing wheat beyond existing commitments without urgent government action. Vivergo highlights that the removal of tariffs combined with ongoing regulatory challenges has undermined the commercial viability of domestic bioethanol production, which they consider a key national strategic asset vital for reducing emissions and future sustainable fuels like aviation biofuel. Despite government promises to act swiftly, the company reports no meaningful progress, urging regulatory changes to boost domestic demand and short-term support to remain operational. The closure would leave the UK reliant on foreign markets, risking supply disruptions and significant economic impacts on regional farmers and workers. Vivergo calls on the government to provide clear policy certainty and mitigate the trade deal's negative consequences to preserve the industry and its associated economic and environmental benefits.