The UK's second largest bioethanol producer, CropEnergies' Ensus, said today it is at risk of imminent closure as result of the US-UK trade deal agreed at the beginning of May.
The US-UK agreement removes import tariffs on 1.4bn l/yr of US ethanol entering the UK, equivalent of the country's entire demand.
This has "fundamentally undermined" Ensus' business, it said. The company's plant at Wilton in northeast England is capable of producing 400mn l/yr.
Ensus UK chairman Grant Pearson called for the UK government "to find a solution to a crisis of its own making."
The call comes shortly after ABF Sugar said it is prepared to shut its 416mn l/yr Saltend plant, again unless the government intervenes.
Ensus said it and ABF subsidiary Vivergo Fuels have held talks with the UK government, looking for ways to boost UK ethanol demand above the US quota level.
Earlier this month ABF Sugar chief executive Kenward suggested raising the UK's ethanol blending mandate from E10 to E15, saying this would give the industry "room to breathe".
Vivergo Fuels told Argus an E15 mandate would increase demand by 660mn l/yr, and said there is "significant potential for increased use of bioethanol in other transport modes such as marine and aviation."
Kenward also proposed a support package, estimating the bioethanol sector would need £75mn/yr ($100mn) for up to two years.
Vivergo said a ongoing review of the UK Renewable Transport Fuel Obligation (RTFO) "is an opportunity to both increase its overall ambition and ensure it is working effectively to achieve its primary aim of greenhouse gas reduction."
