Thu, 26 Jun 2025

Thu, 26 Jun 2025 Food giant threatens to close UK biofuel plant after US tariff deal

AB Foods warns it will shut the UK's biggest bioethanol producer unless the government steps in.
Associated British Foods (ABF) has threatened to shut down its Vivergo bioethanol plant in Hull, which is the UK's largest, due to a lack of government support after a trade deal with the US was struck. The company claims that the removal of a 19% tariff on US ethanol imports will make it impossible for the plant to compete and has requested short-term funding and a long-term solution from the government. If no agreement is reached, ABF will begin consulting with its 150 staff on an orderly wind-down, potentially putting 4,000 jobs at risk in the UK bioethanol industry. The UK government secured tariff cuts on exports to the US as part of the trade deal, including on British cars, but removed a 19% tariff on imports of US ethanol. This means that American fuel can be exported to the UK duty-free, potentially undermining the business position of Ensus, the only other bioethanol plant in the UK. The government has expressed disappointment over ABF's announcement and claims to be committed to working closely with the company to present a plan for a way forward. However, the removal of a tariff on US ethanol imports is seen as a significant blow to the UK's bioethanol industry, which relies heavily on state support.
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