Latest news with #Immingham
BBC News
a day ago
- Business
- BBC News
Calls for government to save Lincolnshire's Lindsey Oil Refinery
Unions and political parties have called on the government to intervene and keep the Lindsey Oil Refinery Minister Michael Shanks announced the plant in North East Lincolnshire was to shut after the government said it was unable to find a buyer for Official Receiver took over the site in Immingham last month after its owner, Prax, went into administration, putting 420 jobs at the Union general secretary Sharon Graham said: "The government can't sit on the sidelines any longer." She added: "The Lindsey refinery is critical national infrastructure and is essential for the UK's fuel supply and the health of the regional economy."The government needs to reverse the premature decision to stop buying crude oil and to extend the time to find a viable long-term solution for the site."Ms Graham's views were echoed by Reform UK, which said it was "shocked that after just three weeks, the Government has given up on the Lindsey Oil Refinery".A statement, co-signed by Greater Lincolnshire mayor Dame Andrea Jenkyns and the leader of Lincolnshire County Council Sean Matthews, said the party believed "a different course of action is essential"."We understand from our sources that the refinery can be profitable with the right management and ownership structure," the statement said."The Government should be looking at joint venture structures, such as the site being publicly owned and bringing in top operating expertise in a public private profit share arrangement." Unite previously said the closure of the Immingham refinery could affect up to 1,000 jobs when taking into account contractors and the supply a written statement in the House of Commons earlier, Shanks said: "The Official Receiver has rigorously assessed all the bids received and concluded that sale of the business as a whole is not a credible option."Having visited some of the workers on site on 17 July, I know this will be hugely disappointing news for them, their families and the local community."A package has been offered to all those directly employed at the refinery, which guarantees jobs and pay over the coming months."He added that the Official Receiver was exploring various proposals for assets."I therefore remain hopeful that a solution will be found that creates future employment opportunities at the Immingham site," he said. Analysis Prax is living on borrowed government is talking about timetables for closing its various oil processing will stop at the end of this month with fuels and oils being sold in the weeks that follow - until they run are calling on the owners of the site to, in their words, "do the right thing" and offer financial support to the hundreds who are losing their Government is asking the insolvency service to investigate how the financial health of Prax was allowed to decline so trade unions are continuing to call for government intervention to keep the plant operational in the long that level of support is looking unlikely. 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. Download the BBC News app from the App Store for iPhone and iPad or Google Play for Android devices.
The Guardian
2 days ago
- Business
- The Guardian
Prax Lindsey oil refinery to shut as government fails to find buyer
The Prax Lindsey oil refinery is to shut down after the government was unable to find a buyer for the stricken plant, workers have been told. In an email seen by the Guardian, staff at the refinery were told that the sales process that began after the business collapsed into administration last month 'has not brought forward an offer […] that is both feasible and deliverable'. 'As a result and regrettably, the decision has been made not to order any further crude to be processed at the refinery,' it said. 'The refinery will shortly need to moved into a wind-down phase, while also processing the remainder of the existing crude.' About 625 staff whose jobs were put at risk by the refinery's failure were told that it was now 'inevitable' that there would be further redundancies. Some staff have already lost their jobs, while 'special managers' from the consultancy FTI Consulting ran the plant during the search for a buyer. In the email to staff, the special managers said the process had led to 'various proposals' to buy parts of the Prax Lindsey operation, including storage, distribution and refining assets. They said talks would continue in the hope of maintaining some operations and jobs at Immingham, the Lincolnshire port where crude deliveries destined for the plant arrive. The Guardian approached the government and special managers for comment. More details soon …
Telegraph
10-07-2025
- Business
- Telegraph
British biofuel factory undercut by US rivals faces closure
Adam Traeger, Greenergy's chief executive, said that cost cuts at its biodiesel plant aimed at improving profitability had failed to offset the impact of the US imports, which are heavily subsidised by Washington and no longer subject to an import duty following Brexit. He said a slower ramp-up in the UK's biofuels blending mandates – currently set at 14pc – compared with other European countries was also impacting production and making it impossible to commit to the investment needed to make Immingham competitive. The fuel rules are meant to lessen the emissions of transport by blending propellant with less environmentally damaging substitutes. Mr Traeger said: 'It has been an incredibly difficult decision to enter consultation on the proposed closure of our Immingham site. However, in light of continuing market pressures, we unfortunately do not have enough certainty on the outlook.' It comes after Argent Energy last year announced the closure of its Motherwell biodiesel plant in Scotland, citing the saturation of the market with Chinese imports. Greenergy will seek talks with ministers on increasing the proportion of biofuel used in the petrol and diesel supplied on UK forecourts, something it said could help protect the sector while also reducing carbon emissions from HGVs. At the same time, it said it would begin consultation on the plant's closure with affected employees as soon as possible. The Immingham site began production in 2007 and accounts for more than a quarter of UK biodiesel production, processing waste oils sourced globally to make it ready for blending. Greenergy, which has been part of Singapore-based commodities trading giant Trafigura since August, also operates a biodiesel plant on Teesside, plus a third in the Netherlands. The firm said high energy and chemicals prices combined with a flood of hydro-treated vegetable oils imported from the US had put pressure on margins to an extent that some even turned negative in certain scenarios. While the Trade Remedies Authority has begun an investigation into the situation it may take a further 12 months to reach a decision. UK policy designed to encourage a switch to biofuels has meanwhile fallen behind measures imposed in EU countries such as Germany, the Netherlands and Ireland, where it is estimated that 2030 mandates will be more than double those of the UK.
BBC News
10-07-2025
- Business
- BBC News
Greenergy Immingham biodiesel plant talks to start on its closure
Talks are due to start on a proposal to permanently close a biodiesel plant in North East Lincolnshire, a fuel supplier has confirmed it will begin a consultation process to cease production at its site in Immingham due to "continuing market pressures".According to Reuters news agency, about 60 jobs are at risk at the plant, which began operating in 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 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 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."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.
Reuters
10-07-2025
- Business
- Reuters
Greenergy proposes to close Immingham biodiesel plant, 60 jobs at risk
LONDON, July 10 (Reuters) - Global commodity trader Trafigura's UK-based biofuel producer and fuel distributor Greenergy will begin a consultation with employees to close its biodiesel plant in Immingham, northeastern England, it said on Thursday. Around 60 jobs will be subject to the consultation process, a spokesperson told Reuters. It would mark the latest blow for Britain's fuel industry, a week after the nearby Lindsey oil refinery's owner Prax announced insolvency, putting 420 jobs at risk. Greenergy shut down the plant and placed it under strategic review at the end of May, citing "unsupportive" market conditions despite "implementing significant cost reduction measures". The company acquired by Trafigura last year, said slower increases in UK biofuels mandates compared to European countries, as well as competition from U.S. exports, had negatively impacted the plant. "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," Greenergy CEO Adam Traeger said. Greenergy's Immingham plant supplies around a quarter of the UK's biodiesel production, and is one of three that the company operates alongside its facilities in Teesside, UK, and Amsterdam, the Netherlands. Biodiesel plants such as Greenergy's at Immingham convert waste oils into biodiesel, which is then blended into the conventional diesel to displace some fossil fuel in the road fuel mix and help curb emissions.
