CropEnergies suspends production at UK bioethanol plant

• 

  freeimages.com

  CropEnergies says it will suspend production at its British unit Ensus because of low bioethanol prices.

  From WATTAgNet:
  German bioethanol producer CropEnergies says it will suspend production at its British unit Ensus because of low bioethanol prices and the strong British pound against the euro.
  CropEnergies said the shutdown is expected to lead to restructuring costs of EUR40 million (US$45.5 million) for 2014-15.
  "This decision has been made due to the current difficult situation in the European bioethanol market which the dramatic drop of oil prices in the last few months has exacerbated," CropEnergies said.
  The company said the production plant will be brought back online as soon as market conditions allowed. The plant is one of Europe’s largest bioethanol plants, with annual production capacity of 400,000 cubic meters of bioethanol and 350,000 tons of dried distillers grains with solubles. At full production, the plant can consume more than 1 million tons of feed wheat annually. This means the shutdown could free up more of the country’s wheat for export.
  "British feed grain is currently in strong demand in the Middle East and Asia following the export restrictions imposed by Russia and Ukraine and I think the British will find a ready market for their wheat supplies," one German grain trader said in a report.
  Bioethanol prices has reached a record low of EUR417 per cubic meter on January 15, down from EUR470 one year ago.

Associated British Foods takes writedown on Vivergo

Associated British Foods (ABF) has taken a GBP98 million (US$148 million) writedown on its investment in bioethanol producer Vivergo Fuels, blaming depressed oil prices and the falling euro.
Vivergo is a GBP350 million U.K.-based joint venture between ABF, BP and DuPont. ABF had originally attributed a value of GBP160 million to its stake, according to reports.
“In light of the continuing fall in crude oil and bioethanol prices, and the further weakening of the euro against sterling,” it has taken the decision to impair its investment, ABF said in a statement.
Ethanol prices have fallen by 5 percent this year, and has been exaggerated in the U.K. market due to the decline in the euro, which has fallen 3 percent against sterling.
"We currently face an extremely challenging market caused by a decline in bioethanol prices, a devaluation of the Euro and falling oil prices," Vivergo Fuels said.
Vivergo added that its "shareholders remain fully supportive" to the business, and "believe in the importance of bioethanol as a renewable transport fuel that delivers both economic and environmental benefits."
Credit Suisse said the "backdrop for Vivergo has deteriorated markedly", but kept its rating on the shares at "outperform," saying its forecast for ABF's earnings per share remained unchanged.
"The fall in Vivergo's cash profits are offset by the lower depreciation charge post the impairment," Credit Suisse said in a report.

Plant to produce natural betaine from bioethanol

Denmark-based Danisco is planning the scale-up of a new extraction process for producing natural betaine that uses vinasse, a byproduct of sugar-beet-derived bioethanol.
Previously, the only method of extracting natural betaine involved sugar-beet molasses, a side stream of sugar production. In addition to increasing the availability of the animal feed ingredient, the new process will allow betaine-extracted bioethanol vinasses to be recycled and sold as crop fertilizer.
A new plant, which will be the first to use the process, will be built in cooperation with manufacturing supplier Novasep Process.