Greenergy plans to cease biodiesel production at Immingham due to market pressures, seeking government support for stronger UK biofuels policies.
Greenergy, a leading UK-based supplier of transportation fuels, has announced its intention to initiate a consultation process regarding the proposed cessation of operations at its biodiesel production facility in Immingham, Lincolnshire. The decision follows a strategic review of the site’s operations that began in late May 2025. Despite Greenergy’s efforts to reduce costs and improve operational efficiency, the Immingham plant has remained under substantial financial pressure due to adverse market conditions.
Key contributing factors include the relatively slow pace at which the UK is expanding its biofuels blending mandates compared to other European nations. This has hindered domestic demand growth for biodiesel. Compounding this challenge is the increasing competition from heavily subsidised biodiesel imports originating from the United States, which has further undermined the economic sustainability of the Immingham facility.
Greenergy emphasized that while several cost-cutting measures had been implemented in recent years to bolster the site’s competitiveness, they were not sufficient to overcome persistent market disadvantages. As a result, the company now finds itself unable to justify the significant capital investments required to maintain and modernize the Immingham site in the absence of clearer, more supportive UK biofuels policies.
Adam Trager, Chief Executive Officer of Greenergy, expressed deep regret over the decision. “It has been an incredibly difficult step to enter consultation on the potential closure of our Immingham site, and one that has not been taken lightly,” said Trager. “Unfortunately, the continued uncertainty surrounding the UK’s biofuels policy framework means we cannot confidently commit to the scale of investment necessary to ensure the long-term competitiveness of the site.”
Trager further stressed that the move does not reflect on the performance or dedication of the plant’s workforce. “This decision is not a reflection on our employees, whose professionalism and commitment have been unwavering. I want to extend my sincere gratitude to the Immingham team for their exceptional efforts,” he stated.
In addition to launching the formal consultation process with affected staff, Greenergy is urging the UK government to take immediate action. The company is calling for increased blending mandates for biofuels in petrol and diesel as a vital step toward supporting domestic producers, securing jobs, and reducing the country’s carbon emissions—especially in hard-to-decarbonize sectors such as heavy goods transportation.
Greenergy has pledged to provide full support to all employees impacted by this proposal throughout the consultation and any subsequent transition period. The company maintains that with the right policy interventions, the UK biofuels industry can continue to play a pivotal role in achieving national decarbonization targets.
