Novozymes reports 11% sales growth for bioenergy segment in 2021

By Erin Voegele | February 01, 2022

Novozymes released fourth quarter financial results on Feb. 1, reporting bioenergy sales were up 10 percent for the three-month period and 11 percent for the full year 2021. The increase was primarily attributed to the recovery of the U.S. ethanol market.

The company reported that U.S. ethanol production gradually recovered in 2021 following a decline in production and use in 2020 caused by the COVID-19 pandemic. Despite the recovery, U.S. ethanol production in 2021 was still lower than 2019 production. “The main factors behind the strong performance in bioenergy were the recovery of the U.S. ethanol industry in combination with growth from innovation, capacity expansion of corn-based ethanol production in Latin America, and market penetration with enzymatic solutions for biodiesel production,” Novozymes said its fourth quarter report. For the fourth quarter, bioenergy sales also benefited from very high crush margins for U.S. ethanol production, which led to higher production and increased demand for Novozymes’ solutions, the company added.

Bioenergy sales accounted for 18 percent of Novozymes’ total sales last year. Household care accounted for 32 percent of sales, with a 1 percent decline in sales for 2021. Food, beverages and human health accounted for 23 percent of sales, with 14 percent sales growth last year, grain and tech processing accounted for 15 percent of 2021 sales and achieved 13 percent growth, while agriculture, animal health and nutrition accounted for 12 percent of 2021 sales, with sales flat with 2020. Overall, Novozymes reported sales were up 6 percent company-wide last year.

Moving into 2022, Novozymes said the additional sales growth for the bioenergy segment is expected to be driven by the continued recovery in U.S. ethanol production, market penetration enabled by innovation, capacity expansion of corn-based ethanol production in Latin America, and market penetration with enzymatic solutions for biodiesel production.

Novozymes said it currently expects 2022 sales growth for the bioenergy segment to be in the low-to-mid single digits. The company attributed the relatively broad range of expected growth to uncertainties related to the pandemic and volatile market conditions. The mid-point range of that forecast assumes moderate growth in U.S. ethanol production this year with full-year volume still slightly below 2019 production levels.