CropEnergies pauses investment plans in Ensus UK: CEO

German ethanol producer CropEnergies has paused investment plans in high protein animal feed at its UK subsidiary, Ensus UK, citing low ethanol prices and import pressures, the company said Dec. 11.

"In addition to high inflation, particularly in the past two years, the persistently low world market price quotations for renewable ethanol and the resulting significant increase in import pressure are causing us to re-evaluate planned projects," CropEnergies CEO Fritz Georg von Graevenitz said.

"Even though we continue to support this project and remain committed to Ensus, we have to prioritize our investments due to market developments and are actively looking at how the project could be alternately financed."

CropEnergies' profit dropped to Eur484 million in the first half of its fiscal year 2024-25, from Eur565 million a year earlier, driven primarily by lower ethanol prices and decreased margins on food and animal feed byproducts. Operating profit fell to Eur17 million from Eur34 million a year earlier.

Lower net raw material and energy costs, as well as increased sales volumes, could not offset the impact of declining ethanol prices.

Platts assessed T2 ethanol FOB Rotterdam at Eur662/cu m Dec. 11, approximately 10% lower than the same period in June, but approximately 9% higher than Dec. 11 last year.

Market participants are anticipating an impact on prices as a result of US imports next year.

"Exports from the US will pressure prices downwards in the next six months," a source said.