Austrian oil baron Rudi Roth to invest $50 millon in Hungarian biodiesel venture

May 5, 2008

In Hungary, Austrian oil baron Rudi Roth announced that MOL has increased its ownership to 33 percent in the 43 Mgy canola-based Rossi Biofuels biodiesel plant in Komarom. Roth will invest a total $50 million in the project, which will be the largest environmental joint venture between Austria and Hungary. MOL previously said it would own 25 percent, Roth had previously pegged his investment at $50 million.
In Hungary had been experiencing numerous setbacks in the development of its biofuels industry.

SEKAB recently 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.

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Written by Jim Lane · Filed Under International, Producer News