Abengoa's Woes Risk Widening Grain Glut on Biofuel Concern
- Owner of EU's biggest ethanol plant seeks to avoid insolvency
- Grain traders may become reluctant to sell to company: Licht
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Europe’s grain farmers, contending with the lowest prices in about five years, may soon face another challenge: woes at the owner of the region’s biggest ethanol plant may lead to less demand.
Spanish renewable energy producer Abengoa SA is due to meet its main creditor banks on Wednesday as it seeks funding needed to avoid insolvency. While Abengoa said Dec. 1 it had no plans to stop production, grain traders may become reluctant to sell the company the wheat and corn its uses to make the biofuel, said Christoph Berg, managing director of researcher F.O. Licht GmbH.