The rising energy and raw material costs would result in shutting some of the ethanol plants temporarily, said German Biofuel producer Cropenergies (CE2Z.De) on Monday, according to reuters.
The increased prices of natural gas and power have put severe pressure on the profitability of plants in Wilton, Britain and they would be closed soon, said the company which is a subsidiary of Europe’s largest sugar refiner Suedzucker (SZUG.DE).
The plant in Wilton has a capacity of producing 400,000 cubic meters of renewable ethanol and would stop operations from January 2023, it said.
The selling price of Biofuel has been reduced due to the import of ethanol into the European Union from the United States and Brazil, the company said.
The company further stated that the management will closely monitor the ethanol market for the next few weeks and take a decision on capacity adjustment or temporary shut off of the operations at individual plants.
