British Bioethanol Plant Faces Closure Amid U.S. Trade Deal Fallout

Associated British Foods has announced the potential closure of the United Kingdom's largest bioethanol plant by September, citing a lack of government support and funding. This move could mark the first significant casualty of Britain's recent tariff agreement with U.S. President Donald Trump.

The trade deal, struck last month, reduced the UK's 19% tariffs on U.S. ethanol to zero within a quota equal to the UK's entire ethanol market. Consequently, this decision jeopardizes production byproducts and affects British arable farmers, undermining Prime Minister Keir Starmer's assurances about the trade deal's benefits.

Bioethanol production in the UK relies heavily on two plants in northern England, including the Vivergo site operated by AB Foods. Industry leaders are advocating for government intervention and financial aid to avert closure, emphasizing the need for a regulatory field that supports British producers.

(With inputs from agencies.)