British biofuels producer Vireol has decided to locate its planned bioethanol plant at Hopewell, Virginian in the U.S., rather than in the UK as originally envisaged. The company said it wanted to take advantage of the more focused legislative environment, more mature market and more cost efficient operations in the U.S.

The company said it was nevertheless committed to building a plant at home. Managing director Ged Russell said he remained hopeful the British government would create a favourable investment climate for renewable transport fuel production.

The U.S. is the world's leading ethanol producer, with 13.3 billion gallons in 2013, followed by Brazil's 6.3 billion gallons, according to the Washington-based Renewable Fuels Association, which represents the U.S. ethanol industry.