European biodiesel producer Greenergy on July 10 confirmed plans to shut down its biodiesel plant in Immingham, Lincolnshire, U.K. The company temporarily suspended operations at the facility earlier this year. 

Despite significant cost reductions to improve the plant's viability, Greenergy said Immingham plant has continued to be negatively impacted by market factors, including slower increases in the U.K.s biofuels blending mandates compared to European countries and competition from subsidized U.S.-origin products.

"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,” said Adam Trager, CEO of Greenergy. “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. We are seeking urgent talks with ministers about increasing the amount of biofuels used in the U.K.’s petrol and diesel, a move which will help protect the biofuels sector, as well as cutting the U.K.'s emissions, particularly from HGVs.

"Today's decision does not reflect the dedication and hard work of affected staff and I would like to thank our employees at Immingham for their tremendous efforts to date,” he continued. “Our priority is supporting our employees through this difficult period."

Greenergy in May temporarily suspended operations at the Immingham facility and kicked off a strategic review to evaluate the commercial viability of the plant. At that time, the company noted staff at the site would remain employed throughout the review period.