Greenergy biodiesel plant do shut down in latest industrial strategy blow
One of Britain’s biggest biodiesel plants is preparing to shut down in the latest blow to the government’s industrial strategy.
The Greenergy plant in Lincolnshire, which is thought to produce as much as a quarter of the UK’s biodiesel, on Thursday confirmed it would begin consultation on a proposal to cease production.
Greenergy said its Immingham plant had continued to be impacted by market factors, including slower increases in the UKs biofuels blending mandates compared to European countries and competition from subsidised US-origin products.
Greenergy CEO Adam Trager said: “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.
“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.
“We are seeking urgent talks with ministers about increasing the amount of biofuels used in the UKs petrol and diesel.”
The closure follows a temporary shutdown of the facility in May ahead of a review of its viability.
Industrial strategy blow
Greenergy’s move is the latest in a string of industrial closures in recent months, including nearby British Steel in Scunthorpe, the Lindsey oil refinery and ABF’s bioethanol plant in Yorkshire.
The government stepped into rescue operations at British Steel in a move that will cost the taxpayer hundreds of millions of pounds, but has so far avoided intervening in other shutdowns.
Last month, the government published its industrial strategy, in which it vowed to “create an enduring partnership between business and a stronger, more capable, and more agile state, with far deeper penetration of business expertise and understanding of companies’ needs,” as well as tackle high industrial electricity costs for manufacturers.
The UK’s biodiesel producers have come under intense strain following a surge in US imports after the UK removed tariffs on US hydrotreated vegetable oil, a form of biodiesel, in November 2022.
In June, Keir Starmer agreed a 1.4bn-litre tariff-free import quota for US ethanol as part of a trade deal with President Donald Trump.