Verbio CEO: Middle East war drives demand for local biofuel

Verbio's chief executive said that the rising fuel prices are "extraordinarily advantageous" for its biofuel producer. The company is experiencing a rise in demand as countries and companies look to cut energy costs and secure supplies.

Verbio, a German company, produces biomethane, bioethanol, and other renewable fuels from local organic materials such as agricultural wastes and food scraps. It is thus protected from the negative impacts of the Middle East Conflict. It has production facilities in Europe, North America, and Asia.

Claus Sauter, CEO of? In an interview, CEO Claus Sauter told?Einen: "We are one of the very few absolute beneficiaries from the current situation." "When diesel or natural gas become extremely expensive, we do not suffer negatively, but our business does." Verbio shares are up around 60% in value since U.S.-Israel coordinated strikes against Iran ended of February. At the same time, fluctuating?oil prices and gas prices forced European legislators to look for ways to increase biomethane supply to reduce dependence on imported natural gas.

Sauter stated that "we're seeing a huge demand from hauliers, who heard about us but didn't engage with the topic before because diesel was so cheap." Since the start of the war, and since the Strait of Hormuz was closed, oil and natural gas prices have skyrocketed. Around one-fifth (or more) of the world's oil and gas transits the Strait of Hormuz. The biomethane fuel can be used to replace fossil fuels for grid networks and transportation. It can also be used as a fertiliser. The International Energy Agency predicted that the demand for this fuel would increase five-fold by 2035.

Sauter said that investors are prioritizing energy security in the face of shocks to global supply chains.

"Biofuels are a three-pronged issue: Agriculture, supply security, and climate protection. Sauter stated that in Europe the priority was climate change protection, followed by security and agriculture.

"Now, the security of supply is at the top." (Reporting from Danny Callaghan, Gdansk; editing by Milla Nissi-Prussak).

(source: Reuters)