Biofuels firm Verbio expands supply chain
London, 1 October (Argus) — German biofuels firm Verbio is taking over feedstock provider Marka in a bid to complement its supply chain for biodiesel and ethanol production.
Leipzig-based Verbio is taking a 89.35pc stake in Marka for €24.57mn ($33.75mn) and 1.47mn of its shares. Marka acts as a collection point for farmers of cereals and oilseeds.
The integration of Maeka will enable Verbio to ensure that all steps of its biofuels production are sustainable.
Verbio's ethanol and biodiesel production sites have already been accredited as sustainable under the German biomass ordinance, which takes effect in January 2011.
The transaction is now subject to approval by Verbio's supervisory board and the cartel office, but is expected to be completed during the fourth quarter.
A rise in the biofuels blending mandate helped lift Verbio's first-half biofuels sales to the domestic blending market by 16pc to 264,279t.
During the same period Verbio produced 187,181t of biodiesel, up by 6pc from first-half 2009.
Rising demand helped lift production in its ethanol plant, where first-half output rose by 13pc to 90,113t.
Verbio expects additional demand from Germany's planned switch to a gasoline blend with 10pc ethanol, or E10, by the end of this year.
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