On July 10, Greenergy, a UK fuel company owned by global commodities trader Trafigura, announced plans to close its biodiesel plant in Immingham, northeast England, and initiate consultation procedures for approximately 60 employees. This decision comes as another blow to the UK fuel industry following the bankruptcy announcement by Prax, the operator of the nearby Lindsey refinery. Greenergy stated that since halting production in late May and conducting a strategic review, despite implementing significant cost-cutting measures, the market environment remains unfavorable.
The plant supplies approximately one-quarter of the UK’s annual biodiesel production, producing biodiesel from waste oils and blending it into conventional diesel to reduce carbon emissions. Greenergy was acquired by the Trafigura Group last year. CEO Adam Treggor acknowledged that under the slow growth of UK biofuel policies and pressure from low-cost exports from the US, the company has struggled to make necessary investments in the Immingham plant to maintain operational competitiveness. This also highlights the UK’s lag in advancing renewable fuel policies.
