UK tariff removal on US ethanol threatens future of UK bioethanol plant
The removal of UK tariffs on US ethanol under a new trade deal threatens the viability of ABF’s Vivergo bioethanol plant in Hull. ABF warns the loss-making facility could shut down without regulatory reform, risking 150 jobs. The tariff-free import quota undermines UK producers and impacts local farmers, prompting calls for urgent government support to protect domestic bioethanol.
The removal of UK tariffs on US ethanol as part of the new US-UK trade agreement poses a serious threat to the future of Associated British Foods’ (ABF) Vivergo bioethanol plant in Hull.
The company has warned the facility — already loss-making — may be forced to close unless regulatory support improves, Reuters reported.
The trade deal will eliminate Britain’s 19% import tariff on US ethanol through a new 1.4 billion-litre (370 million gallon) import quota—far exceeding US ethanol exports to the UK in the past year.
ABF CEO George Weston said in April that the company’s ethanol operations have faced “significant problems” due to what he described as “effectively subsidised imports.”
The company argues that current UK regulations, combined with the new trade terms, are undermining the commercial viability of its Hull-based plant, which produces bioethanol for fuel and also supplies animal feed.
ABF is urging the UK government to reform bioethanol import regulations. Without a policy shift, the company warns it may be forced to mothball or shut down the Hull facility, placing approximately 150 jobs at risk.
“We’re clear on what needs to be done to support the ethanol business—it’s a regulatory issue that requires government action,” Weston stated.
An ABF spokesperson added that the decision to allow tariff-free US ethanol imports is causing “great anxiety” among stakeholders in northeast England, including employees, suppliers, and local farmers. The company is now engaging with the government to assess the full implications of the policy change.
The National Farmers’ Union also raised concerns, cautioning that the move could remove a valuable market for UK arable growers who supply the domestic bioethanol industry.
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Source : Biofuels International
