Argent Power Proposes to finish Manufacturing at its Biodiesel Plant in Scotland.
European biodiesel producer, Argent Power, has entered session on plans to finish manufacturing at its biodiesel plant in Motherwell, Scotland.
Regardless of the superb workforce and their appreciable efforts, exterior components affecting the UK and EU biodiesel market have pushed the requirement to make a strategic change. The choice, taken solely after prolonged consideration of all different choices, will focus the enterprise on its different, higher located places. The corporate is focusing its efforts on supporting all affected staff.
Argent’s Motherwell biodiesel operation is the place Argent Power’s story began again in 2005 producing 45,000 tonnes of waste-based biodiesel annually, earlier than later increasing in 2016. Argent’s second plant in Ellesmere Port is situated on the Manchester Ship Canal and its third is strategically positioned within the Port of Amsterdam. An growth of the Dutch facility is underway with preliminary plans to triple capability.
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The session for workers on the Motherwell facility is predicted to start out as quickly as attainable and Argent might be working carefully with all these impacted at this troublesome time. The choice to seek the advice of on closure of the plant was not simple.
Nevertheless, market situations which have put extreme financial pressures on biodiesel manufacturing amenities within the UK over the previous 2 years have compelled the transfer to make sure the continued power and way forward for the enterprise.
Louise Calviou, Chief Government Officer, mentioned
This has been the toughest choice for us to make and is one we’ve got not taken calmly.
“After cautious consideration of market situations and our strategic objectives for world decarbonisation efforts, we consider it’s a obligatory step we have to take. We and our shareholder stay devoted to our formidable development plans, and our mission to displace as a lot fossil gasoline as attainable continues.”
The principle exterior situations which have considerably weakened the setting for European and UK biodiesel manufacturing are:
- Unprecedented competitors from imported Chinese language biodiesel that advantages from state financial assist and subsidies.
- Approvals by HMRC for main UK gasoline suppliers to utilise Inward Processing reduction and keep away from the conventional 6.5% responsibility for imported biodiesel. That is additionally estimated to have led to misplaced Treasury income of round £150 million in 2023.
- The elimination of commerce defence measures by the UK after Brexit on renewable diesel from the USA, that competes with UK biodiesel. This has resulted in a rise of imports of subsidised US-made product of practically half 1,000,000 tonnes.
- Publish Brexit the lack for the UK to import class 1 tallow – Argent’s most important feedstock – from the EU, on account of EU rules.
These challenges have taken a toll on the sector as an entire and Argent Power is working with the business and UK authorities to resolve these structural imbalances and put the sector again on an excellent footing, stopping additional injury to the UK business. Within the meantime, assist of its staff is the main focus for Argent Power.
ARGENT ENERGY PROPOSES TO END PRODUCTION AT ITS BIODIESEL PLANT IN SCOTLAND, March 25, 2025
