The future of the UK’s largest bioethanol production facility, Vivergo Fuels in Saltend, East Yorkshire, is uncertain following the removal of a 19% import tariff on US ethanol. The tariff cut was part of the recent UK-US trade agreement, which has intensified pressure on domestic producers already grappling with depressed bioethanol prices.
Vivergo, owned by Associated British Foods, had already scaled back production earlier this year due to market conditions. The company has now warned that, without immediate government intervention, it may be forced to shut down operations entirely, putting more than 160 jobs at risk and halting local wheat procurement.
The Saltend facility produces bioethanol for E10 fuel, which contains up to 10% bioethanol and is used across the UK to reduce transport emissions. It also supplies animal feed as a by-product. The plant’s viability is heavily tied to stable domestic policy and pricing conditions.
Business Secretary Jonathan Reynolds has met with Vivergo and Ensus UK, the country’s other major bioethanol producer, to discuss the industry’s future. While the government has acknowledged concerns and expressed willingness to explore support options, no concrete commitments have been made to date.
The outcome may have broader implications for the UK’s low-carbon fuel strategy and domestic supply chain resilience.
