What's Happening?
Discussions continue over the future of the Redcar bioethanol plant operated by German firm Ensus. The UK-US tariff deal, which removed a 19% tariff on US ethanol imports, has undermined the plant's business
position. Ensus is negotiating with the Department for Business and Trade to secure the plant's future, emphasizing the importance of its commercial CO2 production. The plant's closure would impact the UK's CO2 supply, which is largely imported.
Why It's Important?
The Redcar plant's potential closure highlights the impact of international trade agreements on domestic industries. The removal of tariffs on US ethanol imports has created competitive challenges for UK bioethanol producers. Ensus's negotiations with the government are crucial for maintaining a resilient CO2 supply, which is vital for various industries, including food production and healthcare.
What's Next?
Ensus is expected to continue negotiations with the UK government to find a viable solution for the plant's future. The outcome will affect the UK's bioethanol industry and CO2 supply chain. The government may need to consider policy adjustments to support domestic producers and ensure a stable CO2 supply.
