Greenergy proposes to end production at its Immingham biodiesel plant

Greenergy has confirmed it will begin consultation on a proposal to cease production at its biodiesel plant in Immingham, Lincolnshire.
Despite significant cost reductions to improve the plant’s viability, the Immingham plant has continued to be negatively impacted by market factors, including slower increases in the UK’s biofuels blending mandates compared to European countries and competition from subsidised US-origin products.
Greenergy’s announcement follows the strategic review of its biodiesel operations at Immingham, announced in late May.
Consultation with affected employees will begin as soon as possible. Greenergy is committed to supporting staff through this period.
Greenergy CEO, Adam Traeger 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 UK’s petrol and diesel, a move which will help protect the biofuels sector, as well as cutting the UK’s emissions, particularly from HGVs.
“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. Our priority is supporting our employees through this difficult period.’’