Greenergy will acquire an idle biodiesel manufacturing facility located at Oiltanking's site in Amsterdam.
The acquisition of a third biodiesel plant will allow Greenergy to meet growing demand for waste-based biofuel in the UK and Europe.
The biodiesel manufacturing facility was built in 2010 to process vegetable oils but was never commissioned. Greenergy plans to carry out works over the next year to convert the facility to process waste oils rather than vegetable oils and then add further production capacity.
Greenergy is Europes largest manufacturer of biodiesel from waste and it owns two major facilities on the east cost of England in Immingham and Teesside.
The location in Amsterdam benefits from deep-water access, allowing for break bulk on long-haul shipments of waste oils.
Under a long0term agreement, Oiltanking will provide Greenergy with storage facilities for raw materials and finished biodiesels, as well as a range of support services.
Andrew Owns, Greenergy chief executive, says: 'Demand for waste-based biodiesel is rising rapidly in the UK and Europe as a result of higher obligated biofuel inclusion rates. Over the last few years we have scaled up our raw material supply chains and invested in our UK manufacturing facilities, increasing output through a variety of incremental investments.
'We are now leveraging these skills and capabilities to develop a third plant.'
Jan Willem van Velzen, MD for Oiltanking Amsterdam, says: 'Oiltanking will also be investing into its own infrastructure in order to accommodate Greenergy's logistical needs.'
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