ExxonMobil is expanding its Fawley site in the United Kingdom to produce low-sulfur diesel, aiming to meet current British energy demands and lay the groundwork for future lower-carbon fuels. The new investment includes a hydrogen unit and plans for future biofuel production from vegetable oils. Exxon aims to increase low-sulfur diesel production by 40% to reduce imports to the United Kingdom. This investment contrasts with trends in Europe, where many refineries are converting to biofuel production or closing due to economic challenges. For instance, Scotland’s Grangemouth refinery plans to cease refining activities by 2025 to become an import hub. Meanwhile, major oil companies have announced closures of European refineries, converting some to biofuel facilities, such as Eni’s Livorno refinery in Italy and Shell’s Wesseling refinery in Germany. Economic challenges and declining demand for transportation fuels may threaten over 20% of global refining capacity, particularly in Europe and China, according to Wood Mackenzie’s report. The gradual phase-out of free carbon emission allowances and expected reductions in demand for transportation fuels in developed countries are likely to decrease European refining margins starting from 2030.