Trafigura to expand renewable fuel operations with Greenergy acquisition

Commodity trader Trafigura plans to acquire the European business of biodiesel producer and fuel supplier Greenergy from Brookfield Asset Management and Brookfield Business Partners, in a move aimed at bolstering its supply operations in Europe.

PHOTO: Greenergy

The acquisition underscores Trafigura's plan to expand its presence in the renewable fuels sector.

Greenergy, with biofuel production facilities strategically located in the UK's Teesside and Immingham, as well as Amsterdam in The Netherlands, holds a significant position in the European renewable energy landscape. It also has a presence in the bunker fuels market. Last year, Greenergy entered a partnership with Danish physical supplier Bunker One and UK-based bunker trader Propeller Fuels to sell its bunker fuels in UK locations.

Upon completion of the transaction, Greenergy will retain its current management team, ensuring continuity in its operations.

However, Trafigura refused to comment on whether the company plans to supply biofuel bunkers following the acquisition.

There is a growing global demand for renewable energy sources as countries strive to reduce their carbon footprint and meet climate change goals.

“As Europe transitions to a lower carbon future and the refining industry adapts to changing market dynamics, companies like Greenergy become increasingly important,” Trafigura's global head of oil Ben Luckock said.

“This acquisition represents a major expansion of our existing biofuels and fuel supply capabilities, adding Greenergy’s production and distribution expertise and supporting customers’ transition to cleaner, more sustainable fuel options,” Luckock added.

By Debarati Bhattacharjee

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