Cropenergies mulls ethanol plant shutdowns as energy, raw material costs rise

CropEnergies AG

19/09/2022 11:12

Sept 19 (Reuters) - German biofuel producer Cropenergies
 CE2G.DE  on Monday said it might have to reduce or temporarily
shut down production at some of its ethanol plants due to rising
energy and raw material costs.
    A subsidiary of Europe's largest sugar refiner Suedzucker
 SZUG.DE , Cropenergies said a particular focus would be on its
plant in Wilton, Britain, as increased prices for natural gas
and power put severe pressure on the plant's profitability. 
    The plant, which has an annual production capacity of
400,000 cubic meters of renewable ethanol, could even cease
operations from January 2023, the company said.
    It said higher ethanol imports into the European Union and
Britain from Brazil and the United States had reduced the sales
prices for the biofuel.
    Prices of ethanol imported from Brazil have plunged after
heavy tax cuts on fuels, particularly gasoline.  urn:newsml:reuters.com:*:nL8N30G48Z
    "Within the coming weeks, management will closely monitor
the energy, grain and ethanol markets and decide whether
capacity adjustments or even a temporary shutdown of individual
plants will be necessary," the company said.
    Cropenergies confirmed its full-year outlook for a revenue
of between 1.47 billion euros and 1.57 billion euros
($1.47-$1.57 billion) and earnings before interest, tax,
depreciation and amortisation (EBITDA) of between 255 million
and 305 million euros.
    The shares of Cropenergies were down 6.9% as of 1010 GMT.
($1 = 1.0025 euros)

 (Reporting by Anneli Palmen; writing by Bartosz Dabrowski in
Gdansk; editing by Milla Nissi)
 ((bartosz.dabrowski@thomsonreuters.com; +48 58 7696560;))