Trafigura‑Owned Greenergy to Close Immingham Biodiesel Plant Amid Market Pressure
Greenergy, a Trafigura subsidiary, plans to shut its Immingham biodiesel facility—responsible for about 25% of UK output—citing weak domestic policy and competition from cheap American imports. The move puts 60 jobs at risk and highlights systemic challenges facing the UK biofuels sector.
Greenergy, recently acquired by Trafigura, has initiated a consultation to close its Immingham biodiesel plant in Lincolnshire, endangering around 60 jobs. The facility, producing over 100,000 tonnes annually, accounts for roughly a quarter of the UK’s biodiesel capacity—making its shutdown a major blow to domestic renewable fuel production. The closure stems from persistent market pressures.
Despite cost-saving efforts, Greenergy’s CEO, Adam Traeger, cited “unsupportive” UK biofuels policy—lagging behind EU mandates—and an influx of tariff-free, subsidised U. S. hydrotreated vegetable oil (HVO).
Greenergy and other producers allege these imports are being dumped at artificially low prices, prompting an anti-dumping investigation by the UK Trade Remedies Authority. This decision follows a similar downturn at the nearby Lindsey oil refinery—now collapsed—exacerbating concerns over industrial decline in the Immingham region. Industry leaders warn that without emergency government support—such as stronger blending mandates, tariffs on unfair imports, or investment incentives—more domestic plants may be forced to close.
The UK government has responded, acknowledging the sector’s challenges and engaging with stakeholders, while assessing responses to U. S. biofuel imports.
Key points:
- Policy gap: UK blending targets currently lag behind Europe’s, offering limited incentive for domestic producers :contentReference[oaicite:1]{index=1}. - Trade pressure: The 2022 removal of tariffs on U. S.
HVO has led to subsidised imports flooding the market, prompting an anti‑dumping probe :contentReference[oaicite:2]{index=2}. - Economic impact: The proposed closure, affecting 60 jobs, adds to wider distress in the region, including the Lindsey refinery collapse :contentReference[oaicite:3]{index=3}. Greenergy’s Immingham site isn’t alone—other UK bioethanol and biodiesel plants are also on edge.
If decisive policy changes aren’t made, Britain risks losing domestic capacity that supports both economic resilience and decarbonisation targets. Greenergy, Trafigura’s biofuels arm, still operates other sites in Teesside and the Netherlands. But the Immingham closure serves as a stark indicator: without clear support, the UK’s biofuel sector may wither.
Conclusion & Outlook
The Immingham shutdown is a critical warning sign. As global energy markets pivot, protecting domestic biofuel producers through strategic policy reforms and fair trade measures is essential. Investors, workers, and environmental goals all stand to lose if the UK continues on a path toward dependence on imported low‑carbon fuels.
Greenergy and its industry peers are calling for urgent government intervention—now, the Treasury and Department for Transport must act or risk losing a strategic industrial base.
