The British Chambers of Commerce (BCC) has urged the Government
to swiftly act to protect Britain's domestic bioethanol
industry.
It follows warnings from the UK's two largest producers that the
removal of tariffs on US imports could leave them unable to
compete.
Vivergo Fuels in Hull and Ensus in Teesside are calling for
immediate support to safeguard the hundreds of workers they
directly employ, and the thousands of livelihoods they support
across their supply chains – including farmers, engineers, and
hauliers.
The threat stems from the UK-US trade deal, which removed a 19%
tariff on US ethanol imports. While the agreement delivers clear
benefits for industries such as automotive and steel, it also
poses serious risks to the UK's domestic bioethanol
industry.
Ethanol has a range of uses as a component in unleaded petrol,
sustainable aviation fuel, solvents, cleaning agents and
brewing.
Last week, Vivergo Managing Director Ben Hackett cautioned that
without targeted support, its Saltend plant could be forced to
shut down. The site is a major driver of regional employment,
supporting over 4,000 jobs directly and through its supply chain
– the majority in the Yorkshire and Humber region. Ensus, based
in the North East, plays a similarly vital role in supporting
green jobs and supplying sustainable fuels across the
UK.
The BCC has welcomed the broader benefits of the new trade
agreement, signed by Prime Minister , but is calling on the
Government to ensure that the UK's bioethanol sector is not left
behind. Targeted support is needed, they argue, to preserve
thousands of jobs, maintain energy security, and uphold the UK's
transition to low-carbon fuels.
The future of biofuels will feature in the BCC Global Annual
Conference this June, where senior politicians and Bank of
England Governor, Andrew Bailey, will be among the headline
speakers. Representatives from the bioethanol industry are also
expected to attend.
Shevaun Haviland, Director General of the British Chambers of
Commerce, said:
“Bioethanol production plays a vital role in the UK's transition
to clean energy and supports thousands of jobs across Teesside
and the Humber.
"While the recent trade deal with the US brings opportunities for
automotive and steel, it also creates challenges for our
bioeconomy,
"Targeted government support is needed to safeguard this sector's
future and maintain investor confidence as we work toward our
environmental and economic goals.”
Ben Hackett, Managing Director of Vivergo Fuels, said:
“Bioethanol has a vital role to play in transport decarbonisation
and clean energy development for decades to come.
“UK bioethanol production supports thousands of jobs and
businesses across the supply chain, and the impacts will be
keenly felt if the government does not act to support this
critical industry.
“We are encouraged by the engagement we have had from ministers
and now need to see those warm words matched with concrete
support.”
Grant Pearson, Chairman of Ensus UK, said:
“We continue to engage with the government to highlight the
significant impact this deal is likely to have on bioethanol
production in the UK.
“The consequences will be felt across multiple sectors —
including agriculture, the food and drink industry, hospital
operating theatres, nuclear power generation, the development of
sustainable aviation and maritime fuels, as well as undermining
the UK's potential to decarbonise its chemical
industry.”
David Hooper, External Affairs Director for Hull & Humber
Chamber of Commerce, added:
“We have worked with Vivergo for years and helped them make their
case to the Government, and now we've reached another crunch
point, because of tariffs, for a business which employs 160 staff
locally.
“We need decisive action from the Government now before
investments go elsewhere – time is running out fast.”
