2018 was a very good year for Novozymes’ Bioenergy business with 12% organic sales growth, on top of a strong 11% growth in 2017, according to the company’s latest annual report.

Tina Sejersgård Fanø, Executive Vice President, Agriculture & Bioenergy says growth in the sector was driven by the launch of new yeast products – Innova Drive and Lift – for conventional biofuels. Novozymes also saw good performance in Latin America with producers expanding into corn-based ethanol production.

“We´re happy to see continued discussions supporting expanded use of biofuels. In the U.S. we are awaiting clarity on E15, which is expected sometime before summer,” said Fanø. “In Brazil, the RenovaBio framework should support the continued expansion of corn-based ethanol production. China is investing in new capacity, and the REDII directive has been adopted in the EU, with Member States now working on the implementation process”

The company estimates that U.S. and global ethanol production was up around one percent in 2018, ethanol producer margins were under pressure and inventory levels were elevated.