- Greenergy announces temporary closure of biodiesel plant at Immingham
- Bioethanol plants at threat of closure
One of the UK’s four remaining biodiesel plants yesterday announced it is temporarily ceasing production. This follows on from complete closure of the biodiesel plant in Motherwell almost a year ago, and warnings that the two bioethanol plants are at severe risk of closing.
Gaynor Hartnell, Chief Executive of the Renewable Transport Fuel Association said
“Urgent action is needed across Government if we are to retain domestic renewable fuel manufacture and not be entirely reliant on imports. 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 [1] and aiming to encourage new renewable fuel production for aviation.”
Notes for editors
See the Greenergy announcement on https://www.greenergy.com/greenergy-announces-temporary-shutdown-of-immingham-biodiesel-plant20250520070544
See the Argent announcement regarding the Motherwell closure on https://www.argentenergy.com/news/argent-energy-proposes-to-end-production-at-its-biodiesel-plant-in-scotland/
See the joint announcement regarding the bioethanol plants on https://www.abf.co.uk/media/news/2025/vivergo-and-the-uk—us-trade-deal issued 11th May.
Examples of challenges the industry has faced
- Not increasing the RTFO targets sufficiently.
- An influx of subsidised and dumped HVO from the US (which competes with biodiesel).
- Allowing feedstocks that should correctly be categorised as co-products (e.g. ULDUR [2]) to double count towards meeting the Renewable Transport Fuel Obligation, thus halving its impact or making motorists pay twice as much for the same environmental benefit.
- Allowing subsidised renewable fuels to enter the UK tariff free (most recently the Tariff Free Quota under the US-UK trade deal agreed on 8th May).
A few examples of remedies
- Significantly increase the RTFO target, move it onto a GHG-basis rather than a volumetric basis.
- Take measures to increase the demand for high blends of biodiesel and bioethanol.
- Reverse the decision to regard ULDUR[2] 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.
- Amend the UK’s SAF Mandate to make feedstocks used for bioethanol production eligible.
How these would be a win-win for the UK
- There is a pressing need for immediate and practical fuel solutions to reduce greenhouse gas emissions.
- Higher blend biodiesel gives the UK haulage sector a means of delivering their customers’ goods with a lower carbon footprint at little or no additional cost. Higher biodiesel blends have also been adopted in Europe for retail customers (e.g. B10).
- Saving the bioethanol industry will retain the UK’s only large-scale production of good-grade CO2, used in the food and drink industry.
- Saving the bioethanol industry will mean farmers in the NE and Yorkshire will have a domestic demand for wheat that does not make the grade for human consumption.
- Saving the bioethanol industry will mean farmers nation-wide will have a domestic source of protein feed, and not have to import more soy-based product from South America.
Footnotes
[1] “Decarbonising transport directly supports the government’s mission to make Britain a clean energy superpower and will accelerate our journey to net zero.” Opening of Ministerial statement on Sustainable Aviation Fuel (SAF) revenue certainty mechanism: approach to industry funding – government response – see https://www.gov.uk/government/consultations/saf-revenue-certainty-mechanism-approach-to-industry-funding/outcome/saf-revenue-certainty-mechanism-approach-to-industry-funding-government-response
[2] ULDUR stands for unrefined liquid dextrose ultrafiltration retentate
