Britain's largest biofuel plant at risk of closure due to UK-US trade deal impact

The owner of Britain’s biggest bioethanol plant, Associated British Foods (ABF), is considering closing the Hull site by mid-September, endangering 160 jobs. This decision follows concerns that the recent US trade deal could devastate the UK bioethanol industry.

ABF has initiated talks with the government regarding the future of the Vivergo plant. However, due to uncertainties in the outcome of these discussions, the company has started consultations with employees for a potential orderly wind-down.

The UK's trade deal with the US, which allows tariff-free US ethanol into the country, has exacerbated an already challenging situation for ABF. Bioethanol, a renewable fuel produced from agricultural products, is a key product of the Vivergo plant.

Under the terms of the trade deal, the tariffs on US ethanol will be eliminated through a quota system, posing a significant threat to the UK's bioethanol market. Vivergo and Ensus, the main bioethanol producers in the UK, have been vocal about the potential collapse of the industry due to this deal.

Negotiations are ongoing to address concerns over tariffs on British steel imports to the US. ABF is engaging with officials to find a viable solution while simultaneously consulting with employees to determine the plant's future.

Despite extending the deadline for a decision on the Hull plant, ABF has warned that without government support, the plant will close by September 13, impacting jobs and contractual obligations.

According to the source: The Guardian.