AB Foods says Britain has only 12 days left to save the bioethanol industry.

One of Britain's largest bioethanol producers warned on Tuesday the government that it would have to close its plant if it did not provide a package of support for the industry in the next 12 hours.

ABF Sugar (part of Associated British Foods) and Ensus, together, account for almost all the UK's capacity to produce bioethanol.

Paul Kenward (CEO of ABF Sugar) told the Business and Trade Committee in Parliament that "we have 12 days" to save this industry.

Bioethanol can be produced from wheat, and used as a sustainable aviation fuel and to make petrol more environmentally friendly. Carbon dioxide and animal feed are byproducts. The latter will be in short supply after 2022.

ABF Sugar, Ensus and other companies have stated that the U.S.-UK Trade Deal, which saw the UK's tariffs on U.S. Ethanol fall from 19% to zero, as well as existing regulations giving foreign producers an edge on the British market have made the working environment impossible.

The company has announced that their factories in Hull and Teesside, both located in northern England, may be closed.

The plants, along with their supply chain partners and thousands of jobs, support the manufacturing industry.

Kenward informed lawmakers that he must inform farmers by June 15, whether he can sign new contracts to supply wheat.

Why would I do this unless I had some faith that the government was going to step up? He said.

Kenward called for the government to level the playing field in terms of regulation, increase the amount ethanol from 10% to 15% in UK petrol and to support the development sustainable aviation fuel.

He wants to give the industry access to financial assistance up to 150 millions pounds ($203 Million) in short-term terms.

Kenward stated that AB Foods invested 700 millions pounds at the Hull site.

Once it's gone, it's gone. "Imagine what this does to future green industry investors," he said.

A spokesperson for the government said that Jonathan Reynolds, the minister of business and industry, had met with members of the bioethanol industry. Senior officials are "continuing to look at what options might be available to help the affected companies".

(source: Reuters)