Novozymes reports sales growth for bioenergy division

By Erin Voegele | August 15, 2017

Novozymes has released second quarter financial results, reporting increased sales for its bioenergy division. The company also briefly discussed its new initiative to supply yeast for ethanol production.

Sales in the bioenergy division during the first half of 2017 grew by 7 percent organically, and by 9 percent in Danish krones (DKK) when compared to the first half of last year. During the second quarter, sales in the division grew by 8 percent organically and 10 percent in DKK. The bioenergy division accounted for 18 percent of company sales during the first half of this year.

Novozymes said bioenergy sales continued the positive developments experienced during the first three months of the year. The company indicated sales for U.S. conventional fuels benefited from continued high production of ethanol. Sales to other regions of the world also showed growth, but represent a smaller part of overall bioenergy sales.

According to Novozymes, sales of enzymes for biomass conversion also continued to contribute to sales growth in the bioenergy division. The company said it currently supplies enzymes to five biomass conversion facilities.

During an investor call, Tina Sejersgard Fano, executive vice president of agriculture and bioenergy at Novozymes, briefly discussed the company’s plan to provide yeast to ethanol plants. In June, the company announced it was expanding its bioenergy offerings to include yeast.

For conventional ethanol, Fano said the company is trialing yeast products at the plant scale, with commercial launch expected next year. In the cellulosic ethanol sector, she said yeast sales are already well underway with several customers already buying the product.

Overall, Novozymes reported 3 percent organic growth, with the household care, food and beverage and bioenergy divisions all experiencing increased sales. Revenue dropped, however, in the agriculture and feed, and technical and pharma divisions.