Ensus, operator of the Redcar bioethanol plant, warns of imminent closure unless the government intervenes.
The recent UK-US tariff agreement, eliminating the 19% tariff on US ethanol imports, has severely undermined the plant’s viability, according to Ensus.
Chairman Grant Pearson urges immediate government action to prevent the loss of numerous skilled jobs in the region.
The Department for Business and Trade (DBT) states it is actively engaging with the bioethanol industry to assess the deal’s impact.
This announcement follows a similar warning from Associated British Foods (ABF), concerning its Vivergo Fuels Site.
ABF described the new trade agreement, still under development, as a decisive blow to its operations near Hull.
Both plants produce bioethanol for blending with petrol, contributing to the UK’s more environmentally friendly E10 fuel.
Ensus’s Redcar facility processes approximately 400 million liters of bioethanol annually, utilizing domestically and European-sourced feed grain.
The plant also generates high-protein animal feed, a valuable byproduct supplied to farmers.
Ensus employs over 100 people directly and supports a broader supply chain encompassing around 3,000 individuals in northern England.
The influx of competitively priced US bioethanol poses a significant threat to both Ensus and ABF’s business models.
Mr. Pearson highlighted the potential for a catastrophic economic ripple effect stemming from the Teesside plant’s closure.
The UK already ranks as the second largest recipient of US ethanol exports, according to the Renewable Fuels Association.
Geoff Cooper, head of the association, previously expressed enthusiasm for enhanced market access, anticipating benefits for the US agricultural sector and UK consumers.
US Commerce Secretary Howard Lutnick recently announced on X his anticipation for the UK-US agreement to take effect shortly.
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