Corden BioChem to Launch Bioethanol Production in Romania by 2026

Corden BioChem, a leader in industrial biotechnology, has announced plans to restart production at a bioethanol facility it acquired from Swiss firm Clariant in southern Romania. The factory, located in Podari, will become operational in 2026 following the approval from the Competition Council for the takeover of the plant”s steam and electricity supplier.

The acquisition of this decommissioned site occurred in July 2024 under an agreement facilitated by Corden BioChem”s parent company, ICIG. Although the company had initially expressed intentions to resume operations in May, the lack of a reliable power and steam supplier hindered progress until now.

With the recent authorization, Corden BioChem Romania is set to take over specific assets held by Getec Servicii Energetice, the current supplier for the Podari facility. The company aims to not only restart bioethanol production at this site in Dolj County but also to develop innovative biotechnology products, thereby enhancing Romania”s role in the European sustainable production landscape.

Initially, production will focus on first-generation (1G) bioethanol, utilizing local raw materials such as molasses and starch. The anticipated initial production capacity is expected to be several tens of thousands of tons annually. This initiative is projected to create numerous jobs in the region, strengthening the local workforce.

Furthermore, this venture aligns with the Romanian government”s efforts to ensure that fuel distributors meet a minimum biofuel content requirement, as stipulated by Government Emergency Ordinance (GEO) no. 33/2023. It also aims to reduce the country”s reliance on imported fuels.

Previously, Clariant had commenced production of commercial quantities of cellulosic ethanol at the Podari plant on June 14, 2022, following an investment of EUR 140 million. The entire output was to be supplied to Shell under a long-term contract. The facility was expected to produce approximately 50,000 tons of second-generation biofuels from 250,000 tons of agricultural residues sourced locally. However, due to ongoing financial losses, Clariant announced in December 2023 its decision to cease operations, citing the need for substantial capital investment without a viable return.

In total, Clariant invested EUR 140 million in this project, which included EUR 40 million in funding from the European Union through the Bio-Based Industries Joint Undertaking (BBI).