Bioethanol factory in Hull warns thousands of jobs could be lost in US trade deal

It saw tariffs on British steel exports slashed from 25 per cent to zero, while the levy on car sales was also cut.

In response, the US was given 13,000 tonnes of beef to be exported tariff free, and bioethanol tariffs to be cut from 19 per cent to nothing.

Now there are fears that the Vivergo Fuels bioethanol plant in Salt End, near Hull, may have to close over concerns it will be undercut by US imports.

The Yorkshire Post understands that hundreds of jobs at the plant and thousands in the wider supply chain are at risk.

Paul Kenward, chief executive of ABF Sugar, which owns Vivergo, and Grant Pearson, the chairman of Ensus, which runs a separate factory outside Redcar, in Teesside, have called for

The pair praised Sir Keir’s deal for helping the UK steel and car industries, in a joint a statement.

However, they said: “For another strategically essential sector — domestic bioethanol production — it is now clear that the deal has triggered an existential threat. Without immediate action, this vital sovereign capability will be lost.

“We are fast approaching the point where we need to decide whether to sign new contracts. In the current conditions, that would be irresponsible.”

There would be a wider impact on the agricultural sector from the collapse of the sector, as bioethanol is a petrol substitute that is made from farmers’ wheat that is not good enough to be used to make bread.

Vivergo Fuels then makes animal feed, from the leftover protein, which feeds up to 20 per cent of dairy cows in the UK.

If this was lost, farmers would have to replace the feed with imported soy, with a source telling The Yorkshire Post the Hull factory is important for “food security and sustainability”.

The National Farmers’ Union said the inclusion of bioethanol exports “raises concerns” for the agricultural sector in the trade deal.

“We are working through what this means for the viability of the domestic bioethanol production and therefore the potential impact on our members,” President Tom Bradshaw said.

Mr Kenward and Mr Pearson explained: “Hundreds of growers will lose a dependable market for wheat that cannot be used in breadmaking.

“Instead, they’ll be forced to export it at lower prices, while facing higher costs for imported animal feed.

“Without urgent government action, the UK’s bioethanol industry will simply vanish, leaving the country dependent on imported ethanol — while also losing significant domestic production of carbon dioxide and high-protein animal feed.”

It is understood that Vivergo is hoping for some direct support from the Government to provide stability in the short to medium term.

The Prime Minister’s official spokesman told The Yorkshire Post: “We are obviously working with all industries affected, including the ethanol industry.

“The Department for Business and Trade have already met with companies affected by the deal and that engagement will obviously continue.”