Sekab cancels Hungarian ethanol project, citing financing; 30 Hungarian ethanol projects now shelved

March 19, 2008

In Hungary, SEKAB has canceled plans to develop four ethanol plants in Hungary, citing financing difficulties. The company had planned an investment of $600 million in the region, but said that more than 30 plants had been shelved due to poor confidence levels among bankers about feedstock prices and economic viability. A recent drought caused Hungary’s corn crop to come in at half of normal levels in 2007, prompting fears of a a feedstock shortage.

A spokesmen for SEKAB, a Swedish development company, told Reuters that the only plant that was approved in Hungary was an extension of an existing facility, leaving Hungary with two operating ethanol plants.

Duna Development recently announced that it will build a 26 Mgy corn ethanol plant near OroshÃ¡za, in southeast Hungary. Duna said that Hungarian, Swiss, Austrian and German investors are backing the $126 million project that will open in fall 2009. The plant will also produce 18 Mw of electricity and 60 million cubic meters of natural gas.
Magyar Bioenergetikai (Mabio) announced that it will develop two ethanol plants in CsabacsÅ±d and SzabadszÃ¡llÃ¡s with a combined production capacity of 65 Mgy. The development will cost $263 million.
In Hungarian bioodiesel, the 150,000 tonne Rossi Biofuels biodiesel plant has commenced operations in KomÃ¡rom. Austrian businessman Rudi Roth owns 75 percent of the $60 million project and joint venture partner MOL owns the remaining 25 percent. MOL will use 80 percent of the plant’s biodiesel at its refineries.

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Written by Jim Lane · Filed Under International