Greenergy's biodiesel plant struggles for survival amid financial woes

In the United Kingdom, the Greenergy biodiesel plant located at Immingham Docks is currently at risk of closure due to significant financial challenges. As of May 2025, Paul Bateson, the chief operating officer of Greenergy, indicated that the company is undertaking a strategic review to assess the future viability of the site. The plant has been struggling as margins have decreased, energy and staffing costs have increased, and competition with alternative renewables like hydrotreated vegetable oil (HVO) from the US has intensified. This competition poses a substantial threat as US-produced HVO benefits from government subsidies that make it cheaper than domestically produced biodiesel. The situation is further complicated by the current poor state of the biodiesel manufacturing market across Europe. Bateson emphasized the importance of maintaining a robust UK biofuel industry, highlighting its contributions to job creation and supply resilience. The plant's closure would not only lead to job losses but could also result in a dependency on external fuel sources, potentially driving up prices for consumers in the long run. Concerned about the impact on domestic producers, the UK's Department for Business and Trade is engaging with industry stakeholders, working to address the challenges faced by the sector. They have initiated an investigation into whether US HVO is entering the UK market unfairly, which may be harming local biodiesel producers. However, given the pressing nature of these financial issues, urgent support is needed to avert potential job losses and ensure the continued operation of the plant. In this context, the imposition of support measures or trade remedies could play a critical role in revitalizing the domestic biodiesel industry and helping it to compete more effectively against subsidized imports. Stakeholders are urging swift government intervention to protect the industry and preserve skilled jobs in the UK, highlighting the importance of biofuels in achieving carbon emission reduction targets, particularly in public transportation sectors like buses.