Summary
LONDON, May 12 (Reuters) - Britain's two largest bioethanol producers have warned that last week's U.S.-UK trade deal which removed tariffs on U.S. ethanol entering the UK has triggered an "existential threat" to the industry.
Thursday's agreement will see Britain's 19% tariffs on U.S. ethanol fall to zero through a 1.4 billion-litre (370 million gallon) quota—a figure equating to the size of the UK's entire ethanol market today.
Producers Associated British Foods and Ensus, which operate bioethanol facilities at Teesside and Hull in northern England, together account for nearly all of the UK’s bioethanol production capacity.
Along with supply chain partners, they support thousands of jobs. Both said the operating environment "is now impossible."
"This (tariff) change comes on top of regulations that give overseas producers an unfair advantage in the British market," said Paul Kenward, CEO of ABF Sugar, and Grant Pearson, chairman of Ensus, in a joint statement.
"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 said, going further than a statement AB Foods made on Friday.
Bioethanol is produced from crops like wheat and sugar cane and is used to make petrol. Byproducts of its production include animal feed and carbon dioxide, the latter facing severe shortages in 2022.
Britain's National Farmers' Union has warned the ethanol measure could mean the loss of a profitable outlet for arable growers which supply the industry.
ABF Sugar and Ensus jointly purchase more than two million tonnes of wheat annually.
"We are fast approaching the point where we need to decide whether to sign new contracts. In the current conditions, that would be irresponsible," they said, calling for "urgent government action."
Britain's concession on ethanol and beef was made in return for the removal of 25% additional tariffs on steel and aluminium, and a quota of 100,000 cars at a duty of 10%.
A spokesperson for British Prime Minister Keir Starmer said officials from the Department for Business and Trade had met the affected companies, and that "close engagement will continue in the coming weeks and months."
>> In Other News: World's First Commercial-scale e-Methanol Plant Opens in Denmark
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
Inside This Issue 🌎 Chevron Doubles Down on Carbon Capture with Massive Bayou Bend Hub 🌱 Manitoba Startup Pitches $5 Million Biochar Processing Plant to Ritchot Municipality 🏭 MATHESON to Build Ne...
Inside This Issue 🌎 History Made: Deep Sky Alpha Begins Operations with North America's First CO2 Storage via Direct Air Capture 🏅 Neste Achieved Platinum Medal in EcoVadis Sustainability Assessme...
Inside This Issue 🌱 Why Gevo's Live BECCS Project Changes Everything 🛢️ Alternative Carbon Carrier Technology Could Improve Both Oil Production and Carbon Storage 🌊 Hyundai Engineering & Const...
MATHESON to Build New Air Separation Plant in Las Vegas, Nevada, USA
BOULDER, Colo.--(BUSINESS WIRE)--Today, ION Clean Energy (ION), a leading provider of innovative post-combustion carbon capture solutions, announced a new offering called ICE Blocks™. These standar...
Manitoba Startup Pitches $5 Million Biochar Processing Plant to Ritchot Municipality
A pioneering waste management solution could soon transform how one Manitoba community handles organic waste. This week, Carbon Lock Tech, an innovative local startup, presented an ambitious propos...
What US Clean Energy Tax Credit Types Are Available in 2025?
In 2022, the Inflation Reduction Act (IRA) paved the way to grow clean energy investments in the US by extending and adding new types of tax credits. Its largest innovation, transferability, allow...
Marine Carbon Dioxide Removal Coalition Launches, Creates Forum to Responsibly Grow the Field
The coalition unites marine carbon removal companies, nonprofits, and academics to advance research and the responsible development of the sector WASHINGTON, Aug. 21, 2025 /PRNewswire/ -- The Mari...
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.