Novonesis: Strong Demand from Biofuel Sector Contributes to Q1 Sales Growth

by Erin Krueger (Ethanol Producer Magazine) Denmark-based biosolutions company Novonesis on May 5 reported 7% organic sales growth for the first quarter. Sales growth was supported by increased demand from first- and second-generation ethanol producers. Sales to the biodiesel industry also contributed.

Novonesis currently reports sales related to biobased fuels under its agriculture, energy and tech segment, which achieved 5% organic sales growth for the first quarter. Increased sales in the energy and agriculture subsegments drove that growth.

The company reported that growth in energy was driven by Latin America and Asia Pacific, reflecting increased capacity for ethanol production. Growth in North America was driven by the adoption of innovation and growing ethanol production volumes, supported by continued expansion of ethanol exports. Growth also benefitted from increased penetration of solutions for biodiesel production as well as customer ramp-up of second-generation biomass ethanol production.

A full copy of Novonesis’s first quarter report is available on the company’s website. READ MORE

Excerpt from Novonesis/Ethanol Producer Magazine: Since 2020, the ethanol industry has seen a steady resurgence in demand, driven by expanding export markets, increasing decarbonization targets, and a renewed focus on domestic energy independence. As a result, producers are being asked to deliver more: pushing plants, processes and feedstocks further than ever before.

With strong margins across ethanol, distillers corn oil (DCO) and dried distillers grains (DDGs), plants that can operate at higher production rates hold a clear financial advantage. Maximizing output, without sacrificing efficiency, has become a defining factor in plant performance and long-term return on investment.

Increasing Throughput Without Compromising Yield
High-throughput ethanol production focuses on increasing the volume of corn processed to drive greater output of ethanol and coproducts. This can be achieved by increasing corn grind for higher solids and ethanol concentration in fermentation, or increasing the number of fermentations produced per unit of time. In either case, more ethanol gallons, DCO and DDGs are produced, which can significantly add to a plant’s bottom line. Increasing yield will always be important for ethanol producers, and improving a plant’s efficiency by increasing throughput allows producers to double-down and push their facilities to maximize return on investment.

Even in low-margin market conditions, a higher throughput operations model is rarely a negative business decision.

A common misconception is that higher throughput must come at the expense of yield, which can be true if the conversion tools in place can’t manage the demands of today’s ethanol plant operations. When yeast cannot tolerate the increased stress of high solids, elevated ethanol concentrations, or rising temperatures, plants are forced to pull back and reduce efficiency, especially during warmer months when cooling capacity is constrained.

The result can include lower dry solids, stalled fermentations or even complete batch losses. In these environments, consistency suffers and variability increases, ultimately impacting both yield and throughput.

The Biological Bottleneck
“Biological factors like the industrial yeasts used in fermentation can absolutely be a bottleneck to increasing throughput,” says Kim Bertz, senior marketing manager at Novonesis.

Powering the Possibilities of Your Plant
“When developing the Innova™ yeast portfolio, we started with our customers’ biggest challenges,” Bertz explains. “We asked what was limiting their fermentations and what it would take to help them push beyond those constraints.”

Redefining What’s Possible
“Yield is king” has long been a guiding principle in ethanol production. But today’s environment demands more. Producers are looking for ways to maximize both yield and throughput without compromise.

With the right biological foundation, that balance is increasingly achievable. Instead of working around the limitations of fermentation, plants can begin to optimize their entire operation: running faster, pushing harder and capturing more value from existing assets.

As ethanol producers continue to navigate evolving market dynamics, from new carbon intensity targets to increasing demand for low-carbon fuels, the ability to do more with existing assets will define long-term competitiveness. READ MORE

Excerpt from Ethanol Producer Magazine: Novonesis on Aug. 19 released financial results for the first half of 2026, reporting 6% organic sales growth for its agriculture, energy and tech segment on strong demand from the ethanol sector in North America, Latin America and Asia-Pacific.

The energy subsegment achieved double-digit growth driven by sales to Latin America and Asia Pacific, reflecting increased capacity for ethanol production. Growth in North America was also strong and driven by the adoption of innovation and growing ethanol production volumes, supported by accelerating ethanol exports from increased global demand for biofuels. Novonesis said growth also benefited from increased penetration of solutions for biodiesel production as well as customer ramp-up of second-generation biomass ethanol production. READ MORE