- A €135 million credit facility was secured from Hungarian banks.
- The expansion will increase maize purchasing to over 1 million tons in 2017.
- The Dunaföldvár plant supports over 2,000 direct and indirect jobs.
- The company seeks government support against the EU ethanol phase-out plan.
Investment and Expansion
Pannonia Ethanol Zrt. has secured a €135 million credit facility from a consortium of Hungarian banks. This funding will support the expansion of their Dunaföldvár biorefinery in Hungary, focusing on new projects, cost reduction, job creation, and increased corn buying and animal feed output.
Production and Employment
The Dunaföldvár plant, already the largest biorefinery in Europe, will see further cost reductions and increased production capacity. The expansion is expected to boost employment, both directly and indirectly, in the Tolna County region, with maize purchasing from farmers projected to exceed 1 million tons in 2017.
Financial Structure
The credit facility, provided by Budapest Bank, Hungarian Export-Import Bank, K&H Bank, and Raiffeisen Bank, will finance the expansion of ethanol and animal feed production capacity. It will also restructure existing low debt levels on a more economic basis, providing new credit capacity for normal operations.
Government Support
During a trade promotion visit to Ireland, Mark Turley, CEO of Ethanol Europe Renewables (EERL), called for the support of the Hungarian and Irish governments to oppose the European Commission’s plan to phase out conventional ethanol by 2030. Turley argued that the Commission’s plan lacks economic, climate, or scientific justification and would result in significant job losses and reduced income for farmers.
