Operations at the UK’s largest bioethanol facility, Vivergo Fuels in Saltend Chemicals Park near Hull, are under threat following recent changes to trade policy between the UK and the US.
The removal of a 19% tariff on ethanol imports, as part of the new US-UK trade agreement, has raised concerns about a potential influx of cheaper American ethanol, putting UK producers at a competitive disadvantage.
Vivergo Fuels, which has been lobbying for government intervention, warns that without immediate support, the facility could cease operations within days. Employees recently visited Parliament to press MPs for action.
The Mayor of Hull and East Yorkshire, Luke Campbell, toured the site to show support, while central government has stated it is engaging with the bioethanol sector to assess potential support options. Discussions are ongoing between industry leaders and officials.
The situation highlights growing tension between international trade commitments and domestic industrial resilience, particularly in energy and low-carbon sectors. Businesses across UK manufacturing and renewables are watching closely as the outcome could set a precedent for how trade deals intersect with national green industry priorities.
