By Danny Callaghan April 2 (Reuters) - Soaring fuel prices have been "extraordinarily beneficial" to biofuel producer Verbio, which is seeing rising demand as countries and companies seek ways to
Middle East Conflict Boosts Local Biofuel Demand and Production, Verbio Reports
Impact of Global Conflict on Biofuel Markets and Verbio's Growth
By Danny Callaghan
April 2 (Reuters) - Soaring fuel prices have been "extraordinarily beneficial" to biofuel producer Verbio, which is seeing rising demand as countries and companies seek ways to secure supplies and cut energy costs, its chief executive said on Thursday.
Verbio’s Production Model and Geographic Reach
Germany-based Verbio produces renewable fuels biomethane and bioethanol from locally sourced organic materials, such as food waste and agricultural residue, and is therefore shielded from the negative effects of the Middle East conflict. It has production sites in Europe, North America and Asia.
CEO Insights on Market Dynamics
"We are one of the very few absolute beneficiaries from the current situation," CEO Claus Sauter told Reuters in an interview. "When natural gas becomes extremely expensive, or diesel, we are not affected negatively, our business benefits from it."
Market Response and Share Performance
Verbio's shares have added around 60% to their value since the U.S. and Israel launched co-ordinated strikes on Iran at the end of February. At the same time, volatile oil and gas prices pushed European lawmakers to seek ways to ramp up biomethane supplies to reduce dependence on imported gas.
Rising Demand from New Sectors
"We’re seeing huge demand from hauliers who had heard of us but never engaged with the topic because diesel was cheap," Sauter said.
Global Energy Supply Challenges
Oil and natural gas prices have soared since the outbreak of the war and the closure of the Strait of Hormuz. Roughly one-fifth of the world's oil and gas normally transits through the crucial strait.
Biomethane’s Versatility and Future Outlook
Biomethane can be used as a replacement for fossil fuels in grid networks and transport. It is also a feedstock for fertiliser. Last year, the International Energy Agency said it expected demand for the fuel to rise fivefold by 2035.
Investor Priorities and Policy Shifts
Sauter said investors were prioritising energy security amid shocks to global supply chains.
Changing Priorities in the Biofuel Sector
"Three things matter for biofuels: agriculture, security of supply, and climate protection. In Europe, the priority was climate protection first, then security, then agriculture," Sauter said.
Security of Supply Takes Precedence
"Now, security of supply has jumped to the top."
(Reporting by Danny Callaghan in Gdansk, editing by Milla Nissi-Prussak)
