The Novozymes booth was a busy one during this year’s Fuel Ethanol Workshop (FEW) in part because not only is the company continually innovating with new product platforms, but because they have launched several new services for customers to assist them with improving optimization and profitability. Current market conditions was a hot topic at FEW and Novozymes has been focused on their customers during the current state, which according to Hans Klingenberg, global marketing director for the global biofuels business in North America, said is one of tight margins.
During FEW, Klingenberg said his company was focused on corn ethanol producers through discussions around their new product launches. He also supports the company’s strategy of how to build more value for their customers. They are doing this through innovation – identifying early what are the new things that they’re going to be developing internally to grow the industry.
So what is the current market doing? “That’s a really interesting question,” noted Klingenberg. “We really look at the industry as having reached the top of an S curve. So we have enjoyed and really grown up with the ethanol industry over the last years. We’ve come from a period where we all enjoyed tremendous growth and with that a really nice environment. As things have begun to peak, so this near-term period of plateau I would say, and you’re now seeing ethanol demand basically being outstripped by ethanol capacity. We’ve seen the industry tighten up and we’re really seeing that our customers are facing tougher margins as it becomes more tricky to figure out where you’re going to put all that ethanol that being produced.”
However, stressed Klingenberg, no matter the market conditions, there are always ways to advance, and this was their primary message to ethanol producers at FEW: focus on what’s ahead. “I’d say the plateau we’ve reached is really more like a train station and getting to the next stop. We see tremendous opportunities for ethanol producers to continue to develop their business and to grow both their top line and their profitability. And,” added Klingenberg, “we’re here to help them both in products and new services in helping them optimize their plants and increase their profitability.”
Learn more by listening to Chuck’s interview with Hans Klingenberg here: Interview with Hans Klingenberg, Novozymes
You can find photos from the 2016 FEW here: 2016 FEW Photo Album