UK biodiesel industry calls for urgent action from ministers to save sector

Britain’s biodiesel sector is facing a major crisis that is putting hundreds of British jobs at risk, warned the Renewable Transport Fuel Association Aug. 12.  

Industry leaders are calling for urgent talks with ministers to develop a clear plan of action to ensure the continuation of the U.K.’s existing renewables sector, maintain vital skills for the transition and attract continued investment.  

The industry is urging the government to prioritize U.K. production of biofuels, such as biodiesel and bioethanol, that can decarbonize road transport today.  

This can be done by increasing existing biofuel mandates that set the amount of biofuels to be blended with diesel and gasoline under the Renewable Transport Fuel Obligation.  

The RTFO is due to be reviewed by government in late 2026 but industry warns action is needed more urgently.  

The U.K. has slipped behind countries like Germany, the Netherlands, Spain and Ireland, where there have been policy changes, increasing the amount of biofuels blended into diesel and gas to drive decarbonization.  

The U.K. used to be Europe’s most influential and ambitious country in decarbonizing transport, but now it is estimated that by 2030, without an increase in mandates , the demand for renewable fuel in many EU countries will be double that of the U.K.  

Increasing the mandate would not require Government handouts, RTFA noted, but it would help the government deliver immediate carbon savings from the 31 million passenger cars and 500,000 heavy-duty vehicles that are on U.K. roads today.  

Latest Department for Transport data shows that road-transport emissions in 2023 represented 88 percent of total transport emissions and 29 percent of U.K. net domestic emissions.  

“The U.K. used to be one of the leaders in biofuels for transport in Europe, but now our sector is on the brink,” said RTFA CEO Tom Reid. “The U.K. is falling behind Europe and we need urgent action and policy changes to save the biodiesel (and bioethanol) industries. This will save hundreds of jobs in locations where they are needed, as there aren’t new, equivalent employment opportunities in these specific areas if more plants end production. We support the government’s goal of moving towards greater use of electric vehicles—but that transition will take time, especially for heavy-duty vehicles. While these investments are being made, by increasing the use of biofuels, ministers can immediately cut greenhouse-gas emissions from all the vehicles that are on the road today and for years to come. This is not a handout—just a simple rule change.”  

Adam Traeger, the CEO of Greenergy, the U.K.’s leading biodiesel producer, said, “Increasing the existing biofuel mandates will deliver a real boost to the sector and help ministers realize their targets of cutting emissions. It will also bring us back in line with other European countries, where biofuels are playing a key role in the energy transition, while securing a domestic industry and highly skilled domestic jobs. But this needs to become a priority now.” 

Joe Kenny, CEO of Olleco, a U.K. biodiesel producer and used cooking oil collector, added, “For years, the U.K. has collected and processed domestic waste, converting it into biofuels to be used on our roads. As other countries ramp up their ambitions and enhance policy support, an increasing volume of this waste is now being exported to overseas producers of road and aviation fuels. This trend represents a missed opportunity to equally strengthen investment in U.K.-based production and to advance domestic circular economy. Now is the time for the U.K. to match these ambitious policies and strengthen demand for these important fuels.”  

Louise Calviou, CEO of Argent Energy, one of the U.K.’s biodiesel producers, said, “The demand for renewable fuels is driven by government policy. While the use of biodiesel is one of the most cost-efficient and easiest ways to achieve reductions in transport emissions, that does not change the fundamental truth—we need government to ensure the demand is there. The current U.K. policy does not do that and so four of the seven biofuel factories in the U.K. have closed or are planning to close, including Argent’s biodiesel plant in Motherwell. We are asking ministers to show with actions that they want continued investment in renewable fuel technology, assets and skills in the U.K.”  

The call for action comes four weeks after Greenergy announced that it planned to end biodiesel production at its Immingham plant in Lincolnshire.  

Last year, Argent Energy was forced to close its biodiesel plant in Motherwell, Scotland.