British biofuel company Greenergy has reached agreement to acquire an disused biodiesel manufacturing facility in Amsterdam port, the company said in a statement.

The seller is Oiltanking, a large tank farm operation in Amsterdam. Under a long-term agreement, Oiltanking will provide Greenergy with storage facilities for raw materials and finished biodiesel, as well as a range of support services. Financial terms were not disclosed.

The Amsterdam 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 to add further production capacity.

London-based Greenergy already owns two major biodiesel manufacturing facilities on the east coast of England, at Immingham and Teesside, making it Europe’s largest manufacturer of biodiesel from waste.

‘Demand for waste-based biodiesel is rising rapidly in the UK and Europe as a result of higher obligated biofuel inclusion rates,’ said Greenergy CEO Andrew Owens.

The location in Amsterdam benefits from deep-water access, allowing for break bulk on long-haul shipments of waste oils. It will also allow for growth in Greenergy’s supply of waste-based biodiesel to customers across Europe, Owens added.

‘Amsterdam is becoming one of the major ports involved in sustainable fuel production,’ said Roon van Maanen of Amsterdam port authority.