Greenergy Considers Permanent Closure of UK Biofuel Plant

by Ship & Bunker News Team
Thursday July 10, 2025

Energy firm Greenergy has confirmed it has started a consultation process on a proposal to permanently cease production at its biofuel plant in the UK.

Greenergy's Immingham plant has faced ongoing challenges, despite efforts to cut costs and improve viability, it said in an emailed statement on Thursday.

These include slower growth in the UK's biofuel blending mandates compared to Europe, and increased competition from subsidised US-origin biodiesel.

Production at the Immingham plant has been temporarily suspended since May, when Greenergy announced a review of operations at the site.

''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," Adam Traeger, CEO of Greenergy, said.

"However, in light of continuing market pressures, we unfortunately do not have enough certainty on the outlook for UK biofuels policy to make the substantial investments required to create a competitive operation at Immingham."

Greenergy is part of the Trafigura Group, and its Immingham plant began production in 2007, accounting for 25% of the UK's biodiesel production.

"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," Traeger concluded.