Crop Energies expects lower ethanol prices

CropEnergies, the Germany-based operator of the UK's biggest operating biothanol plant, has reported increased profits on the back of year-on-year production increases.

But expected lower prices for ethanol will crimp revenues this year, the company said in a results statement this week. 

Crop Energies said its overall ethanol production in the financial year to February 28 was 12% higher in 2017, rising to 1.149 billion litres driven in major part by an increase in output from its 400 million litres/year-capacity Ensus subsidiary in Wilton, northeastern England. 

It did not specify output figures for the Wilton plant, however.

Revenues, which include its animal feed and carbon dioxide divisions, were up 10% in the 12-month period to February 28, to £771 million, the company said.

The company may struggle to maintain those revenues this year because of expected weaker ethanol prices, it added.  

"For the financial year starting March 1, prices for sustainably produced, climate friendly ethanol are expected to be below the previous year’s level," it said.