1. Why is the closure of Vivergo Fuels significant for the UK motor industry?

Vivergo was the UK’s largest bioethanol producer and a key supplier for E10 petrol blends. Its closure removes a major domestic source of renewable fuel just as the UK considers raising ethanol content to E15. This could impact supply security, pricing, and the UK’s ability to meet low-carbon fuel targets.

2. How does the UK-US trade deal affect ethanol supply?

The May 2025 trade deal removed a 19% tariff on U.S. ethanol and introduced a 1.4 billion litre duty-free quota — roughly equal to the UK’s entire annual demand. This gives U.S. producers, backed by the Renewable Fuels Association, a dominant position in the UK market, undercutting domestic suppliers on price.

3. What does this mean for UK motorists and fuel retailers?

Short term, cheaper U.S. ethanol could lower petrol blending costs and potentially ease pump prices. Longer term, it may support the case for higher ethanol blends like E15, which would require adjustments by retailers and increased public awareness about vehicle compatibility.

4. What are the implications for automakers?

Most post-2010 petrol cars can run on E15, but the UK’s transition will require updates to fuel standards, clear labelling, and coordination with OEMs to manage fleet compatibility and warranty issues. Automakers have an interest in ensuring the transition is smooth and does not cause customer confusion.

5. What happens next for the UK’s bioethanol sector?

Ensus is now the UK’s only large-scale producer, but its future is uncertain. Government reviews of E15 and the Renewable Transport Fuel Obligation may shape demand, but without domestic support, the market is likely to rely heavily on U.S. imports.

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