Greenergy has announced it will close its biodiesel plant in Immingham, Lincolnshire, after a strategic review of the site’s viability. The plant had already suspended operations earlier this year, and despite efforts to reduce costs, market conditions have continued to undermine its sustainability.
The company pointed to several factors contributing to the closure, including slower growth in the UK’s biofuels blending mandates compared to other European markets and increasing competition from US-subsidised biodiesel imports. Greenergy has said that without clarity on future UK biofuels policy, the necessary investment to make the plant competitive is not feasible.
The decision comes after months of evaluation and reflects broader challenges faced by the biofuels sector in the UK. Greenergy is seeking urgent discussions with government officials to boost biofuels usage in the country, a move it believes could help protect the sector while supporting the UK’s emissions reduction targets.
Greenergy has pledged to support its Immingham staff during the transition.
