Bioethanol plant faces closure amid tariff changes, operator warns

A major bioethanol facility in Redcar is at risk of shutting down "imminently" unless urgent government intervention is secured, its operator has warned.
Ensus, the company behind the plant, claims that a recent UK-US trade agreement eliminating a 19% tariff on imported US ethanol has seriously jeopardised its ability to remain competitive.
Grant Pearson, chairman of Ensus, urged the government to deliver a swift and effective response to protect highly skilled jobs and the broader supply chain in northern England.
A spokesperson for the Department for Business and Trade (DBT) confirmed that it is in ongoing discussions with the bioethanol sector to assess the implications of the new trade arrangement.
This development echoes concerns raised by Associated British Foods (ABF), which operates the UK’s only other bioethanol plant, Vivergo Fuels in Saltend near Hull. ABF recently described the emerging deal as the “final blow” to its operation.
Both Ensus and ABF produce bioethanol — an essential component of E10 petrol, designed to reduce vehicle emissions.
The Redcar facility alone manufactures roughly 400 million litres of bioethanol annually, using feed grain sourced from farms across the UK and Europe. It also produces valuable byproducts like high-protein animal feed, sold to local farmers.
Ensus employs over 100 workers directly, and its operations support an estimated 3,000 jobs across the regional supply chain. The influx of cheaper US ethanol, however, threatens to undercut domestic producers, potentially forcing closures that could ripple through agriculture and other connected industries.
Pearson warned that shuttering the Teesside plant would have "a catastrophic knock-on effect" across multiple sectors.
The UK is already the second-largest importer of US ethanol, according to the Renewable Fuels Association.
Its president, Geoff Cooper, welcomed the removal of trade barriers, stating in May that it would "boost our farm economy" and offer UK motorists "lower-cost, cleaner fuel."