Leipzig, September 22, 2021 – During the financial year 2020/21, VERBIO Vereinigte BioEnergie AG took a new step in the history of the Group: for the first time, the Group’s turnover exceeded one billion euros. Important factors such as the start of the internationalization of VERBIO AG, the implementation of the RED II directive in German law, good margins in the biodiesel and bioethanol segments, and the high demand for advanced biomethane from Distillation waste and straw all contributed to the 17.6 percent increase in turnover, which stood at 1.026 billion euros in the past year (previous year: 872.4 million euros). Profit before interest, taxes and depreciation (EBITDA) increased by 36.2% to 166.3 million euros, or 44.2 million euros ahead of the very good results obtained the previous year. In the middle of the year (in December 2020), the VERBIO share was promoted to SDAX and the value of VERBIO AG quintupled in the space of one year.
Compared to the previous year, the total production of biodiesel and bioethanol increased to 834,541 tonnes (previous year: 796,411 tonnes). Capacity utilization was 90.7%. The volume of biomethane production also increased to 794,817 MWh against 784,414 MWh during the 2019/20 financial year.
The lights are green – both nationally and internationally
“It has been a great year for VERBIO. For the first time, we have broken the ‘sound barrier’ of billion in annual revenue, and once again we have increased our EBITDA by a significant amount. But it’s not just about our numbers; the framework conditions also show that we are on the right track.The greenhouse gas reduction quota in Germany is expected to drop from 6% currently to 25% in 2030, and the demand for advanced biofuels will soon be several times greater than the market for conventional biofuels. We are seeing similar trends in other European states. Finally, the formulation of ambitious European climate protection targets is followed by concrete actions and clear implementation requirements. The transport sector is the furthest behind in terms of emissions, and therefore the targets for this sector are particularly ambitious “, said Claus Sauter, President of u VERBIO Executive Board. “At VERBIO, we have been waiting for this for 15 years. Finally, the time has come. We are ready.
BioLNG as a promising market
The increased demand for renewable fuels, a large number of new laws, requirements and subsidy programs for renewable fuels from the German government, low-emission vehicles for road freight transport, the toll exemption for heavy-duty powered vehicles to CNG / LNG fuels, and the introduction of CO2 on fossil fuels will all have a positive effect on the market environment from 2022. These developments will be driven at European level by the “Fit for 55” program proposed by the European Commission. The reform of energy taxation will play a major role here; fuels and powertrains will now be taxed according to their energy content and environmental performance (greenhouse gas emissions). Credits to meet greenhouse gas quotas will no longer be allocated for fossil natural gas from 2022. This will generate additional demand for advanced renewable biofuels.
Biomethane has made its breakthrough for use as a fuel in the heavy goods transport sector; BioLNG will be a global mega trend. “Currently, 10% of newly registered articulated trucks in Germany are powered by gas engines. We are surprised that LNG is the significant leader here, although there are currently only 70 public LNG stations across the country. Large-scale liquefaction plant for 60,000 tonnes of BioLNG at the Zörbig site and the construction of up to 20 LNG service stations owned by VERBIO, we aim to exploit the potential offered by this growing sector. value chain, from capturing raw materials to filling tanks for heavy goods vehicles, ”said Claus Sauter.
Comprehensive investment program to expand existing sites
Currently, VERBIO produces biofuels from renewable raw materials and advanced biomethane from distillation waste and straw at its sites in Zörbig, Bitterfeld, Schwedt and Pinnow, as well as in growing markets in North America and India. Following a comprehensive investment program, VERBIO’s capacity for the production of biodiesel, bioethanol and biomethane in Germany will be significantly expanded by the end of 2023. The focus will be on advanced biofuels produced from residual products and wastes listed in Annex IX of RED II.
Also in the United States, our biomethane capacity will increase from 20 MW to 80 MW. The Group is implementing the VERBIO biorefinery concept there at the Nevada / Iowa site. In the future, the feedstock for the biomethane plant will include residual waste from bioethanol production (distillation waste) in addition to straw. The Nevada biorefinery is expected to be completed by the end of 2022. Also in the United States, VERBIO plans to open a global trading office for advanced biofuels, especially advanced biomethane.
There are also new marketing opportunities for bioethanol, biodiesel and biomethane resulting from the increasing decarbonization of the chemical, steel and cement industries, and CO.2 air and sea transport reduction targets.
VERBIO technology for the decarbonisation of the chemical industry
With the construction of the world’s first ethenolysis plant, VERBIO will begin its activities in the dynamic field of decarbonation in the chemical industry. The technology, which was developed by VERBIO, uses a catalyst developed by XiMo, the Hungarian subsidiary of the Group, and this catalyst is expected to be manufactured on an industrial scale in the future. Using the ethenolysis plant, we will manufacture, on a non-fossil basis, three new rapeseed oil methyl ester products that will be used as raw materials in various specialty chemical applications. In addition to the ethenolysis plant in Germany, an industrial scale catalyst manufacturing plant will be built in Hungary.
Always one step ahead of the market
In total, VERBIO plans to invest nearly 300 million euros by mid-2023. “VERBIO has always been one step ahead of the market. With our factories in Germany, India and the United States, we have a very good base that will allow us to access European, American and Asian markets. For example, we have already entered into a declaration of intent with IndianOil, India’s largest oil company, to build new plants in India. The increasing pace of decarbonisation in new sectors beyond the transport sector opens up many opportunities for VERBIO products and technologies, ”said Claus Sauter.
Outlook for the 2021/22 financial year
Based on current sales and price levels of raw materials and planned use of production capacity (but without adjustment for potential effects on earnings caused by the ongoing COVID-19 pandemic), the board Directors of VERBIO Vereinigte BioEnergie AG expects to achieve an EBITDA for the fiscal year 2021/22 of approximately 150 million euros. Net cash is expected to be around 50 million euros at the end of the year. The Group’s vast investment program will be financed in large part by the available cash reserves generated during previous years and cash flows linked to current operations.
“The first regulatory benchmarks for meeting climate targets have been set – and there is no way to avoid VERBIO in this,” Claus Sauter concluded. “We are the largest manufacturer of advanced biomethane in Europe and possibly the world. Biomethane from straw is not only climate neutral, it is even CO.2 negative when CO2 emissions that would otherwise be released into the atmosphere by letting the straw rot in the fields are taken into account. We are on the starting point, ready to expand our internationalization strategy and make a significant contribution to the decarbonization of the world. ”
Dividend and annual report
The Management Board and the Supervisory Board will propose to the General Meeting to be held in February 2022 the payment of a dividend of EUR 0.20 per qualified share, unchanged compared to the previous year.
The detailed annual report 2020/21, as well as the extra-financial statement for fiscal year 2020/21 and the Corporate News on the financial statements for the fiscal year, are available on: www.verbio.de/investor-relations/
VERBIO Vereinigte BioEnergie AG published this content on September 22, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on September 22, 2021 07:11:03 AM UTC.