Trafigura to acquire UK-based biodiesel producer Greenergy

Greenergy operates three biodiesel plants—two in the U.K. at Immingham and Teesside and one in Amsterdam (shown), which the company acquired in 2018. (Photo: Greenergy)

Singapore-based Trafigura Group Pte Ltd. and Greenergy, a U.K.-based supplier of road fuels and a major biodiesel producer, announced March 4 that Trafigura has agreed to acquire Greenergy’s European business from Brookfield Asset Management and its listed affiliate Brookfield Business Partners for an undisclosed sum.

The acquisition is subject to customary closing conditions and regulatory approvals.

Initially founded in 1992 to supply diesel with lower emissions, Greenergy is today one of Europe’s largest suppliers of biofuels with manufacturing plants in the U.K. and the Netherlands and a leading distributor of road fuels in the U.K.

The acquisition of Greenergy presents a unique opportunity for Trafigura to strengthen its fuel-supply operations in Europe and to add the physical production and distribution of renewable fuels to its growing biofuels business.

After the acquisition, the company will continue to be led by its current management team.

The combination of Trafigura’s and Greenergy’s commercial and market expertise will add value to the existing operations, and enable the company to explore opportunities for expansion into new markets and products.

In addition, Trafigura’s financial strength will provide a robust platform for growth, helping to drive Greenergy’s strategic initiatives and its decarbonization plan.

“As Europe transitions to a lower-carbon future and the refining industry adapts to changing market dynamics, companies like Greenergy become increasingly important,” said Ben Luckock, Trafigura’s global head of oil. “This acquisition represents a major expansion of our existing biofuels and fuel-supply capabilities, adding Greenergy’s production and distribution expertise and supporting customers’ transition to cleaner, more sustainable fuel options.”

Greenergy CEO Christian Flach added, “Trafigura brings additional understanding of global supply chains and energy markets and a track record of investing in renewables. This will further enhance our offer to customers through the energy transition and beyond.”