IMMINGHAM (England), March 30: Independent oil company Greenergy's biodiesel plant in north-east England began commercial production on Friday and should ramp up to full output in a couple of weeks, chief executive Andrew Owens said. The plant has an initial capacity of 100,000 tonnes of biodiesel from rapeseed oil, palm oil and soyabean oil.

Owens told Reuters in an interview that the second phase, which should take capacity to 200,000 tonnes is on schedule to be completed in November.

The plant includes a vegetable oil refining unit, allowing to buy crude vegetable oil.

Rival UK biodiesel producers Biofuels Corp plc. and D1 Oils have both been running at below capacity recently, citing a sharp decline in profit margins with feedstock costs rising and the mineral oil market weakening.

“We are very comfortable with margins where they are now,” Owens said.—Reuters