CropEnergies reports record Q2 revenue, announces E20 trial

By Erin Voegele | October 19, 2021

European ethanol producer CropEnergies on Oct. 13 reported record revenue for the second quarter of the current financial year. The company also recently announced it is participating in a trial of a 20 percent ethanol fuel blend.

CropEnergies reported revenues of EUR 249 million ($289.65 million) for the second fiscal quarter, the three-month period ending Aug. 31, up from EUR 229 million reported for the same period of last year. For the first half of the year, revenues reached EUR 463 million, up from EUR 399 million. The company attributed the increase to higher sales volumes and improved sales prices for both ethanol and food and feed coproducts.

Operating profit for the second quarter was EUR 23.3 million, down from EUR 42.6 million, and EUR 38.4 million for the first half of the fiscal year, down from EUR 50.7 million. The reduction is attributed to higher raw material and energy prices.

Ethanol production for the first half of fiscal year reached 520,000 cubic meters, up from 463,000 cubic meters reported for the same period of the previous year.

According to CropEnergies, the introduction of E10 in Sweden in August and the U.K. in September is leading to higher ethanol demand. Higher raw material and energy prices, however, are expected to have a negative impact on earnings through the end of the year.

In a separate statement released Oct. 11, CropEnergies announced that it is working with Stuttgart Airport and oil company Mabanaft Deutschland GmbH & Co. KG to test an E20 blend of fuel, referred to as “Super Eco 20.”

"We are convinced that we need all technologies to decarbonize – or rather to fossilize – the transport sector. Renewable ethanol is available today and can contribute directly and with the existing infrastructure to reduce fossil carbon dioxide emissions in the vehicle fleet," said Stephan Meeder, CEO of CropEnergies AG.

"Increasing the ethanol blending is the next logical step and we already want to provide a basis for a possible future standardization with this test," added Jörg Bernard, fuel expert from the research and development department of parent company Südzucker.

CropEnergies confirmed that the trial is being accompanied by well-known car manufacturers and suppliers and includes technical analyses and emissions testing.

CropEnergies currently operates ethanol plants located in Wanze, Belgium; Zeitz, Germany; Wilton, U.K.; and Loon-Plage, France.