UK ethanol producer Ensus, subsidiary of German's CropEnergies, will receive financial support worth around £100mn ($133mn) from the UK government.
The purpose of the funding package is to safeguard and protect supply chains of the UK's critical CO2 supplies, by keeping Ensus' 315,000 t/yr Ethanol plant, in Wilton, Teesside, northeast England, in a ready to operate standby mode.
CO2 is a byproduct of ethanol production and Ensus is capable of capturing 250,000 t/yr of CO2 at its Wilton site. The UK ministry of business and trade (DBT) has said that this "shores up" CO2 supplies, which are vital for Britain's nuclear, packaged meats, fresh food and healthcare industries. The UK experienced a CO2 supply shortage in the summer of 2018, caused by the shutdown of major fertiliser plants.
DBT also said that the reliability of CO2 imports has dropped significantly, attributing this to disruptions to European fertiliser production, alongside difficult market conditions, with gas prices rising as a result of the Iran conflict, and unplanned maintenance at several European CO2 production sites.
Wilton ceased operating in autumn 2025, and was at risk of closure due to the UK-US trade deal, but production will now temporarily restart from today, 26 March, according to DBT.
The UK trade agreement with the US allows duty-free imports of 1.4bn litres/yr of US ethanol and led to the closure of the UK's other ethanol producer Vivergo in August 2025.
Ensus chairman Grant Pearson said at the time that the government was "looking at options to secure an ongoing supply of CO2 from the Ensus facility," and DBT said today it had been in discussion with Ensus in September 2025.
When Ensus is in operation it will support "UK agricultural and fuel markets including the expansion required in more sustainable aviation and maritime fuels and the future manufacture of more sustainable chemicals," Pearson said.
"The anticipated introduction of E15 and of sustainable aviation fuels based on agricultural biomass is not only a strong signal for better climate protection and security of supply, but also a blueprint for corresponding implementation within the EU," CropEnergies chief executive Fritz Georg von Graevenitz said.
