Hungary’s bioethanol projects hit by high grain price

Weather

Plans to open dozens of new bioethanol plants in Hungary using millions of tons of grain have stalled because of high agricultural prices, a firm which earlier announced one of the biggest projects said on Thursday.

Swedish firm SEKAB said last year it would open four bioethanol plants for a total of €380 million ($540.5 million), using an annual 1.5 million tons of Hungary’s surplus grain. „It’s not getting anywhere,” László Zsemberi, who heads SEKAB’s Hungarian operations, told Reuters.

Since last year grain prices have doubled in Hungary due to a global market rally and a severe local drought, which has ruined more than half the maize crop. Zsemberi said other firms faced similar problems. „I can certainly say that the current ethanol market and the agricultural raw material situation have made ethanol projects impossible to finance for banks and investors,” said Zsemberi, who leads the Hungarian Bioethanol Association.

It is one of several ethanol groups and includes the local unit of US biotech giant Monsanto as a member. Hungary, which in recent seasons struggled to get rid of its grain stocks, has targeted 800,000 tons ethanol capacity within a few years, but it is now running out of grain, prompting protests from livestock farmers short of feed. (Read more)

ADVERTISEMENT

Business, consumer confidence improves - Századvég Analysis

Business, consumer confidence improves - Századvég

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

Martina Cifer joins Avison Young Hungary Appointments

Martina Cifer joins Avison Young Hungary

BFK developing regional cycling strategy City

BFK developing regional cycling strategy

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.