Pannonia Ethanol invests in Hungary and criticizes the European Commission

Budapest

Pannonia Ethanol, a company which is part of Ethanol Europe Renewables Limited and is located in Dunaföldvár, Tolna County, Hungary, has successfully completed a Euro 135 million financial package with a consortium of Hungarian banks to support expansion at the company’s Dunaföldvár biorefinery (investment in new projects, cost reduction, additional jobs, and increases in both corn buying and animal feed output).

“The plant is already the largest biorefinery in Europe. This investment further reduces costs and increases production capacity across the board. It also supports the introduction of innovative new bioproducts that promise significant benefits for human and animal health”, Mark Turley, Ceo of Pannonia Ethanol’s parent Ethanol Europe Renewables (EERL) said.

“The Dunaföldvár plant – Turley added – currently supports over 2,000 direct and indirect jobs in the Tolna County region. The expansion will increase employment further, both directly and through the plant’s strong economic multiplier effect. Maize purchasing from farmers will exceed 1 million tons in 2017”.

Pannonia Ethanol is the leading renewable ethanol producer in Central and Eastern Europe and adds nearly € 500 million to Hungary’s GDP and supports 2000 jobs, mostly in rural areas.

The Hungarian facility currently utilizes more than 1,000,000 tons of corn annually. The plant produces as much animal feed as renewable ethanol during the process and has output of up to 450 million liters of renewable ethanol, and 325,000 tons of Dried Distillers Grains with Solubles (DDGS), a high protein animal feed. The facility also produces 10,000 tons of corn oil.

“We are very pleased – Eric Sievers, Investment Director of Ethanol Europe Renewables, said – that this facility has been provided by a consortium of Hungarian banks, the Hungarian Export-Import Bank, Raiffeisen Bank, K&H Bank and Budapest Bank. The package provides new credit capacity for our normal working operations, finances an expansion of ethanol/animal feed production capacity and restructures existing low debt levels on a more economic basis”.

Ethanol Europe Renewables makes no secret of considering destructive the European policy towards the ethanol industry, which “continues to drive away billions of euros in investments and cost rural communities tens of thousands of jobs”.

According to Turley, “the negative impact of the European Commission’s new Low-Emission Mobility Strategy on Hungarian GDP alone we estimate at €1billion. Since 2008 the Commission has progressively undermined the conventional ethanol industry by taking policy direction from ideology and dismissing science. Ethanol’s sustainability, value to rural communities and its value as the lowest cost carbon abatement technology in the transport sector has been proven beyond doubt. And in the face of those facts, the Commission has proposed to abolish the entire industry, and not even provided a reason.”

 

by Will Yi Huang

 

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