UK biodiesel producer Greenergy makes major int'l investments

U.K. biodiesel producer Greenergy has just acquired Singapore-based used cooking oil exporter Rexon Energy. The acquisition comes less than two months after purchasing an idle biodiesel facility in Amsterdam.

The acquisition of Rexon Energy will help provide raw materials for its three biodiesel manufacturing operations in Immingham and Teeside on the east coast of England, along with its new Amsterdam-based facility, which is scheduled to begin operating next year. 

“We have increased our purchasing of used cooking oils from around the world over a number of years and Rexon has become a significant supplier,” said Greenergy CEO Andrew Owens. “Our acquisition of Rexon provides greater integration in this part of our supply chain.”

In July, Greenergy reached an agreement with tank terminal operator Oiltanking to purchase an idle biodiesel manufacturing facility located at Oiltanking’s site in Amsterdam. The Amsterdam biodiesel plant was built in 2010 to process vegetable oils but was never commissioned. Greenergy plans to retrofit the facility to process waste oils and expand production capacity.

“Demand for waste-based biodiesel is rising rapidly in the U.K. and Europe as a result of higher obligated biofuel inclusion rates,” Owens said. “Over the last few years we have scaled up our raw material supply chains and invested in our U.K. manufacturing facilities, increasing output through a variety of incremental investments. We are now leveraging these skills and capabilities to develop a third plant.”

The Amsterdam location has deep-water access for break bulk on long-haul shipments of waste oils, according to Greenergy. It will also allow the U.K. biodiesel producer to expand its supply of fuel to Europe.

Oiltanking will provide Greenergy with storage facilities for feedstock and biodiesel, in addition to other support services per a long-term agreement between the two entities.

“Oiltanking will also be investing into its own infrastructure in order to accommodate Greenergy’s logistical needs,” said Jan Willem van Velzen, managing director of Oiltanking Amsterdam B.V. “As Greenergy’s logistical partner we are proud to become an integral part of this green sustainable supply chain.”

In a bizarre coincidence, another U.K.-based biodiesel producer, Argent Energy, also purchased an Amsterdam-based biodiesel production facility at roughly the same time in July. Argent Energy Group, a subsidiary of John Swire & Sons Ltd., announced July 20 that it had reached an agreement to acquire Amsterdam-based Simadan Group’s biodiesel production, tank storage and cleaning facilities.