Greenergy to permanently close biodiesel plant in Immingham, UK
- Greenergy
- Jul 10
- 3 min read
U.K. biodiesel producer and fuel distributor Greenergy confirmed July 10 that it will begin consultation on a proposal to cease production at its biodiesel plant in Immingham, Lincolnshire.
The company said despite significant cost reductions to improve the plant’s viability, its Immingham plant has continued to be negatively impacted by market factors including slower increases in the U.K.’s biofuels-blending mandates compared to European countries and competition from subsidized U.S. products.
Greenergy’s July 10 decision follows the strategic review of its biodiesel operations at Immingham announced in May.
Consultation with affected employees will begin as soon as possible, the company stated, adding that it is committed to supporting staff through this period.
“It has been an incredibly difficult decision to enter consultation on the proposed closure of our Immingham site, and a decision we have not taken lightly,” said Greenergy CEO Adam Traeger. “In light of continuing market pressures, however, we unfortunately do not have enough certainty on the outlook for U.K. biofuels policy to make the substantial investments required to create a competitive operation at Immingham. We are seeking urgent talks with ministers about increasing the amount of biofuels used in the U.K.’s petrol and diesel, a move which will help protect the biofuels sector, as well as cutting the U.K.’s emissions, particularly from heavy-goods vehicles. Today’s decision does not reflect the dedication and hard work of affected staff and I would like to thank our employees at Immingham for their tremendous efforts to date. Our priority is supporting our employees through this difficult period.’’
Greenergy’s Immingham plant began production in 2007 and accounts for over 25 percent of U.K. biodiesel production.
The Immingham plant processes waste oils sourced globally into biodiesel, which is then blended into road fuels to displace diesel, reducing emissions.
Under the proposal, the plant will cease production of biodiesel and permanently shut down.
Despite implementing significant cost-reduction measures at Immingham, market conditions remain unsupportive and U.K. policy has fallen behind European countries such as Germany, the Netherlands and Ireland.
In these countries, higher mandates are playing an increasingly important role in decarbonizing road fuels.
While each country operates slightly differently, it is estimated that by 2030 their effective mandates will be more than double those of the U.K.
The mandate in each country sets the maximum amount of biofuels that can be blended with gas and diesel. In the U.K., the current mandate is 14 percent.
This announcement follows on Argent’s closure of its Motherwell plant in Scotland in 2024.
High prices for energy, chemicals and an influx of hydrotreated vegetable oil (HVO) into the U.K. has put severe pressure on biodiesel production margins, even turning them negative in certain scenarios.
The Trade Remedies Authority has opened an investigation, but this could take another year for a decision.
In business for over 30 years, and part of the Trafigura Group since August 2024, Greenergy is an established supplier and distributor of transportation fuels.
Supplying around a quarter of the U.K.’s road fuels, Greenergy is also a leading European manufacturer of biodiesel from wastes.
In addition to its Immingham facility, Greenergy operates another biodiesel plant in the U.K. at Teesside and owns a biodiesel refinery in the Netherlands.
Internationally, Greenergy supplies over 14 billion liters (3.7 billion gallons) of fuel annually to supermarkets, oil companies, fuel wholesalers and retail and commercial customers.
It manages fuel supply chains from refinery gates to customer sites, importing, storing, blending and distributing fuel and managing stock levels for customers.
