Trade Groups Weigh in on Closure of Greenergy Biodiesel Plant in Immingham, UK

Aviation Fuel/Sustainable Aviation Fuel (SAF)BioRefineries/Renewable Fuel Production Business News/Analysis China European Union (EU)Feedstocks Marketing/Market Forces and Sales Opinions Policy Sustainability UK (United Kingdom)

May 27, 2025

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by Ron Kotrba (Biobased Diesel Daily) Greenergy announced May 20 the temporary suspension of operations at its biodiesel plant in Immingham, North East England.

The company said it is conducting a strategic review to evaluate the plant’s commercial viability amid “the significant challenges currently facing the U.K. biofuels industry.”

Greenergy added that, “despite implementing significant cost-reduction measures at Immingham, market conditions remain unsupportive.”

The company said all staff at the site will remain employed throughout the review period.

Greenergy added that it will be working closely with its staff during this time.

“Greenergy’s announcement of a temporary shutdown at its Immingham biodiesel plant marks another major blow to the U.K.’s renewable fuels sector,” stated the European Waste-based & Advanced Biofuels Association. “EWABA has long cautioned that policy inaction and missteps are driving domestic production to the brink, even as the U.K. and Europe seek to position themselves as green energy leaders. Without urgent reform, the U.K. risks losing all domestic renewable fuel production.”

EWABA outlined key challenges faced by the U.K. biofuels industry, including:

Stagnant renewable transport fuel obligation (RTFO) targets that need a significant and immediate boost.
Tariff-free biofuels imports under trade deals and inward processing.
Dumped and subsidized biofuels from China and the U.S., displacing U.K.-made fuels.

Another trade group, the Renewable Transport Fuel Association, added that examples of challenges the U.K. industry faces include:

Allowing coproducts to double count towards meeting the RTFO, thus halving its impact or making motorists pay twice as much for the same environmental benefit.
Allowing renewable fuels to enter the U.K. tariff free (either via inward processing or most recently the tariff-free quota under the U.S.-U.K. trade deal agreed to May 8).
Not increasing the RTFO targets.
An influx of subsidized and dumped biofuels from China.
An influx of subsidized and dumped renewable diesel from the U.S.

The RTFA offered remedies to correct the market conditions, including:

Reversing the decision to regard unrefined liquid dextrose ultrafiltration retentate (ULDUR) as a waste, upon which government recently consulted. This decision is needed immediately, along with an announcement that all other bioethanol feedstocks with double-counting status will be reviewed.
Significantly increase the RTFO target, move it onto a greenhouse-gas (GHG) basis rather than a volumetric basis.
Take measures to increase the demand for high blends of biodiesel and bioethanol.
Amend the U.K.’s sustainable aviation fuel (SAF) mandate to make feedstocks used for bioethanol production eligible.

The announcement from Greenergy followed the closure of the Argent Energy Motherwell plant last year, “with bioethanol producers now warning they may be next,” RTFA stated.

“Urgent action is needed across government if we are to retain domestic renewable fuel manufacture and not be entirely reliant on imports,” RTFA said. “There’s been a catalogue of damaging decisions over recent years, all of which were preventable and can be remedied, but time is running out. This comes at a bad time when government is setting out its stall as a green-energy superpower and aiming to encourage new renewable fuel production for aviation.” READ MORE

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UK bioethanol factories face closure after Trump trade deal (Financial Times)
Biofuel plant 'faces closure after US trade deal' (BBC)
UK biofuels sector in jeopardy as US trade deal stings (Farmers Weekly)

Excerpt from BBC: The UK's largest bioethanol plant will be forced to close unless the government acts, according to its operator.

In April, Associated British Foods (ABF) said it was in talks with the government to help save its Vivergo Fuels site at Saltend, near Hull, after being forced to cut production levels due to low bioethanol prices.

On Tuesday, Vivergo said the removal of a 19% tariff on US ethanol imports, which was part of the recent UK-US trade deal, was the "final blow".

A government spokesperson said it was working closely with the industry to understand the impacts of the trade deal and it was open to discussions over potential support.

Urgent action needed

In a letter to farmers, Vivergo managing director Ben Hackett said: "Unfortunately, if there is no government intervention in the next few weeks, our plant will have to close.

"That is because the government has made a series of decisions that undercut UK ethanol production in favour of US imports. The most recent trade deal was the final blow.

"If there is no government intervention, we will not be able to purchase any more wheat outside our current, limited, commercial commitments."

The firm said that without urgent action, the plant, which employs more than 160 people, would no longer be viable and its wheat purchases would end.

Mr Hackett added: "This is avertable. If the government provides sufficient policy certainty to us in the long term and ameliorates the effects of their decisions in the short term, we can continue to operate and expand production.

"But so far, they have made no commitments." READ MORE