Novozymes reports solid sales growth for bioenergy segment

By Erin Voegele | February 07, 2018

Novozymes has released 2017 financial results, reporting solid sales growth. Overall, the company achieved 4 percent organic sales growth. In the bioenergy segment, sales grew by 11 percent. For the fourth quarter, Novozymes reported 4 percent organic sales growth, with 14 percent sales growth for the bioenergy segment.

Tina Sejersgård Fanø, executive vice president of agriculture and bioenergy at Novozymes, called 2017 a good year for the company’s bioenergy business. “Growth was mainly driven by conventional biofuels with good contribution across regions supporting the demand for more sustainable liquid transportation fuels,” she said.

Novozymes said that the strong performance by the bioenergy segment was driven by the company’s broader product portfolio and strong focus on tailoring process-specific solutions to individual customer needs. In 2017, the bioenergy segment accounted for 18 percent of Novozymes sales.

Sales of enzymes for conventional biofuels in North America were supported by ethanol production levels estimated to be 2 to 3 percent higher than in 2016. “Sales of enzymes for biomass conversion also contributed to growth, mainly in the first nine months, but make up a small proportion of the Bioenergy segment,” Sejersgård Fanø said

Moving into 2018, Novozymes said it expects U.S. ethanol production to be roughly on par with last year. Good sales development is expected to continue, as technology introduced over the past 18 months is being adopted in the marketplace. The company has added yeast to its product portfolio, which is expected to contribute to sales growth for the segment. Sales of enzymes for cellulosic ethanol are expected to increase this year, but continue to make up a small portion of overall sales in the bioenergy segment.