Britain’s biodiesel producers have accused the government of sacrificing domestic green manufacturing after it declined to impose protective duties against heavily subsidised imports from the US. Business secretary Jonathan Reynolds cited an “economic interest test”, finding that while duties could benefit UK producers by £3mn a year, downstream users and consumers would face a hit of £46mn. The UK’s nascent biodiesel industry accused Reynolds of a short-term approach, contradicting Prime Minister Andy Burnham’s promises to reindustrialise Britain.

Global biodiesel production is forecast to rise 40% by 2035, with British producers accounting for 7% of the UK market and US imports roughly one-quarter. The Renewable Transport Fuel Association warned that Reynolds’s decision risks “long-term or permanent closure” of the UK’s three remaining plants. Argent Energy’s Dickon Posnett questioned the government’s intentions, asking if they want a UK biodiesel industry at all.

The RTFA is consulting lawyers over a potential challenge and plans to press the Department for Transport for stronger support. In March 2025, UK producers complained to the Trade Remedies Authority, which found harm from subsidised US imports. Reynolds rejected duties despite the evidence, citing broader public interest.

Last year, the UK granted the US a 1.4bn-litre bioethanol quota, leading to the closure of the UK’s largest bioethanol plant and 4,000 job losses.