Talks to start on closure of biodiesel plant

Talks are due to start on a proposal to permanently close a biodiesel plant in North East Lincolnshire, a fuel supplier has said.

Greenergy confirmed it will begin a consultation process to cease production at its site in Immingham due to "continuing market pressures".

About 60 jobs are at risk at the plant, which began operating in 2007 and accounts for over 25% of UK biodiesel, the company has said.

Greenergy CEO, Adam Traeger said it had been "an incredibly difficult decision" and it would begin consulting with affected employees "as soon as possible".

The announcement comes more than a week after owners of the nearby Lindsey oil refinery announced insolvency, putting 420 jobs at risk.

Greenergy, which has been in business for over 30 years and is part of the Trafigura Group, said a strategic review was undertaken into the site's future in May.

The Immingham plant converts waste oils into biodiesel, which goes into diesel used in cars, public buses and lorries, to help bring down the carbon emissions they produce.

Mr Traeger said: ''It has been an incredibly difficult decision to enter consultation on the proposed closure of our Immingham site, and a decision we have not taken lightly.

"However, in light of continuing market pressures, we unfortunately do not have enough certainty on the outlook for UK biofuels policy to make the substantial investments required to create a competitive operation at Immingham."

Mr Traeger also said the company was "seeking urgent talks with ministers about increasing the amount of biofuels used in the UK's petrol and diesel" to help protect the sector.

The BBC has contacted the Department for Energy Security and Net Zero for comment.

Listen to highlights from Lincolnshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here.