Written evidence submitted by Greenergy (MAN0034)

 

Greenergy is a UK-headquartered fuel supplier and manufacturer of renewable fuels, employing over 1,110 people nationwide, including over 60 staff at our Teesside plant. Greenergy currently operates one biodiesel facility on Teesside in the UK and one in the Netherlands.

Until July 2025, we operated a second UK biodiesel plant at Immingham. However, following a period of sustained operational and market pressures, we began consultation on the proposed closure of our biodiesel production facility in Immingham and decommissioning works are now underway. This comes after a cold shutdown in May while we undertook a strategic review of the site’s future viability.

 

  1. What should be the underlying principles of the UK’s strategic policy for keeping the oil and gas sector competitive during the energy transition?

According to the latest DfT and DVLA licencing statistics, over 87% of road vehicles are powered by fossil fuels only which rises to over 95% including plug-in hybrids. Oil and gas are still a critical resource for the UK’s transport sector.

The UK should maintain import tariffs on fossil fuels to support supply resilience and continuity of supply whilst transport transitions to net-zero. To further support this, UK government should support domestic renewable fuels to combat price volatility of imports. This can be achieved through the Renewable Transport Fuel Obligation and by differentiating the excise duty between fossil fuels and biofuels.

The UK should try and simplify customs documentation to support fuel imports and supply resilience. GB to Northern Ireland procedures can be subject to delays and increased costs due to the Windsor agreement. The proofs for the end use of “not at risk” goods are not always easily attainable leading to increased administrative costs which also risks not being able to claim back the duties thus increasing the cost of supply to the end consumer. Free movement of goods between GB and NI should be considered to ensure supply resilience and reduced cost.

 

  1. How can the UK continue to make best use of its oil and gas infrastructure as an asset while delivering the transition?

Ensure cross-departmental collaboration between policy, planning and permitting. Whilst assets are modified to support transition fuels, the permitting and planning processes need to be simplified and streamlined to avoid unnecessary delays.

As the Department for Energy Security and Net Zero Committee’s call for evidence recognises, the UK must maintain a reliable fuel supply chain to protect critical services and the wider economy during the transition. Domestic production has declined over recent years most recently with the Lindsay Oil Refinery closure in 2025 making import logistics even more strategically important: operational jetties and terminals, adequate storage, safe blending capability, and resilient pipelines combined with dependable road and rail infrastructure ensures energy resilience, supports regional supply and helps mitigate price volatility. Sustaining this infrastructure is not just about today’s conventional fuels it’s also crucial for the energy transition to lower carbon fuels.

 

  1. How can the UK ensure that critical services that currently rely on a reliable fuel supply chain (from hospitals generators, to freight logistics, to food supply) can transition to low carbon alternatives without any disruption.

The UK can modernise fuel standards so fuels with higher renewable fuel content such as B10 (10% FAME) and E15 (15% ethanol) become the ‘norm’ rather than an exception. These can be phased in with clear timelines for implementation which ensures the supply chain can invest and prepare where necessary.

The RTFO is a crucial mechanism for ensuring consistent supply of renewable fuels, particularly relevant in the harder to abate sectors such as heavy goods vehicles, back up generators and off-grid applications. The RTFO also gives investors long term certainty which will support the transition to net zero.

The government can also offer clear guidance on how the above sectors can use drop-in fuels such as HVO, high-FAME blends and high-ethanol blends to support their uptake and use.

 

  1. What does the Government need to do to ensure that the transition from oil and gas does not simply de-industrialise areas and damage the communities that currently benefit from the fossil fuel industry?

The government can support this through re-skilling of the existing workforce. This should be performed before the transition to alternative energy to support a smooth transition and the communities involved.

 

  1. How should the UK manage a declining domestic market in gas, including how the gas infrastructure can be partially, or completely, decommissioned without putting the burden on a shrinking number of consumers?

Nothing to add

 

  1. What should the Government be doing to ensure the supply chains for the oil and gas sector are sustained as North Sea outputs decline and they transition to supporting the renewables sector?

Nothing to add

 

January 2026

 

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