British Bioethanol Industry Faces Shutdown Amid US Trade Deal Fallout

The UK is on the verge of losing its largest bioethanol plant, as Associated British Foods (AB Foods) threatens closure unless the government intervenes. This crisis emerges due to a recent trade deal with the US, which saw the removal of UK's 19% tariffs on American ethanol imports.

Prime Minister Keir Starmer finds himself in a difficult position as this potential closure contradicts his previous endorsement of the UK-US trade agreement as a job protector. The decision threatens not only the bioethanol sector but also its byproducts, impacting farmers and related industries.

Bioethanol production in Britain is under duress, warned key players like AB Foods and Ensus. With jobs on the line, industry leaders are pressuring the government for immediate support. AB Foods demands increased bioethanol usage in petrol and more investment in green technology to sustain operations.

(With inputs from agencies.)