July 11 (Renewables Now) - German bioethanol producer CropEnergies AG (ETR:CE2) made a weak start to the 2018/19 financial year amid low ethanol prices but said the EU compromise on renewable energy targets opens up further growth potential for biofuels after 2020.
The company's revenue in March-May fell 17% year-on-year to EUR 192 million (USD 224.9m), while operating profit dropped to EUR 5 million from EUR 24 million. The company in June said ethanol prices and results were expected to improve over the year, but still adjusted downwards its full-year revenue and operating profit ranges.
CropEnergies said this month it sees significant progress in the compromise agreed by the negotiators of the European Parliament, Council and Commission on June 14 to increase the minimum share of renewable energies in transport from 10% in 2020 to 14% in 2030, in spite of doubts about the environmental benefits of the planned "fictitious" multiple counting, such as for electricity in electric vehicles.
"Keeping established renewable fuels from locally produced biomass and the objective of expanding the use of residue- and waste-based fuels create opportunities for both environment and biofuels industry," the company said.
(EUR 1 = USD 1.171)