European T2 fuel ethanol values increase on Ensus closure

03 April 2013 17:14  [Source: ICIS news]

LONDON (ICIS)--European T2 fuel ethanol values firmed on Wednesday following news that Ensus had paused production at its plant in Wilton, UK.

European T2 fuel ethanol values were trading at €628-635/cubic metre (cbm) ($804-813/cbm) FOB (free on board) Rotterdam, up €10-13/cbm from last week.

Sources say that the temporary closure of Ensus’s 400m litre/year biorefinery came as a surprise, as they did not believe production margins were too bad.

“Unfortunately, the European ethanol market continues to be challenging as the price of ethanol has not risen in line with input costs. In the UK the poor wheat harvest in 2012 has also had an adverse impact on the quality and price of the feed wheat feedstock used within the plant, while rising gas prices have pushed our costs up considerably,” a spokesperson for Ensus said.

"Ensus remains confident in the long term future of the business and we believe it is critical that the UK continues to support the use of high quality sustainable biofuels. Ensus is able to supply genuine environmentally sustainable ethanol to satisfy this need but unfortunately market conditions are working against us at the moment," added CEO Peter Sopp.

($1 = €0.78)

By: Sarah Trinder
+44 20 8652 3214

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