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Germany's CropEnergies AG, one of Europe's largest ethanol producers, said on Wednesday that easing coronavirus lockdowns across the region could boost demand for bio-ethanol as more people are able to use automobiles.
The company has also significantly increased output of ethanol for disinfectants as fuel demand collapsed after lockdowns were imposed.
“CropEnergies expects to see an improvement in the second quarter compared with the first as the operating and mobility restrictions mandated since mid-March 2020 have been eased in more and more countries,” it said. “This should go hand in hand with an increase in fuel demand.”
Germany and other European Union countries require biofuels, including ethanol, to be blended with gasoline to reduce pollution, so falling fuel sales automatically cut ethanol demand.
“CropEnergies has expanded the production of ethanol suitable for disinfectants and contributed to closing supply gaps during the corona pandemic,” it said.
CropEnergies, a unit of German sugar producer Suedzucker , said operating profit in the first quarter of its 2020/2021 financial year to May 31 fell 46% on the year to 8.1 million euros ($9.14 million). Net profit fell 25% to 7.9 million euro and quarterly sales fell 15% to 171 million euros. It had made an advance release of earnings on June 17.
Source: Online/SZK
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