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Greenergy wants to close the Immingham Biodiesel Plant, putting 60 jobs at Risk

Trafigura, a global commodity trader, said that its UK-based Greenergy biofuel producer will consult with employees about closing the biodiesel factory in Immingham.

A spokesperson said that the consultation process will affect 60 jobs.

This would be the latest blow to Britain's fuel sector, just a week after Lindsey's oil refinery owner Prax declared insolvency and put 420 jobs on the line.

Greenergy closed down the plant at the end May and placed it in strategic review, citing the "unsupportive market conditions" despite having "implemented significant cost-reduction measures".

The plant was negatively affected by the company Trafigura acquired last year. It said that UK biofuel mandates were slower than those of other European countries and also due to competition from U.S. imports.

Adam Traeger, Greenergy's CEO, said that "in light of continued market pressures we do not have sufficient certainty about the future outlook for UK policy on biofuels to make the significant investments required to create an operation competitive at Immingham."

Greenergy's Immingham facility supplies about a quarter (25%) of UK biodiesel. It is one of three plants that Greenergy operates, along with its facilities in Teesside and Amsterdam.

The Greenergy plant in Immingham, for example, converts waste oil into biodiesel. This is blended with conventional diesel fuel to reduce emissions and replace some fossil fuels. (Reporting and editing by Barbara Lewis; Robert Harvey)

(source: Reuters)