The emergence of Bio-energy is without doubt one of the most important developments in the agricultural markets in recent years, judging by the effects on price, volatility, trade flows and supply-demand equations.
Driven by a multitude of reasons - including the needs to reduce greenhouse gas emissions, to increase security of fuel supply or to provide support to the farming industry, numerous governments actively promote and support the production of bio energy, through a combination of subsidies, tax incentives and mandatory blending.
The result has been a tremendous growth in biodiesel, bio-ethanol and biomass-to-power plant capacity, and a strong incremental demand for a range of products previously predominantly sold into the food and the feed industry. The effects on price as well as price volatility have been significant. In this environment security of supply and risk management of feedstock and bio-product prices are key to bio-energy producers.
Through Nidera's activities in Bio-energy, and our traditional experience in the sourcing, trading and risk management of agro-commodities, Nidera is in the unique position to unite feed, food and fuels markets, and offer a multitude of services to the bio-energy industry.
Nidera is first and foremost a reliable supplier of raw materials for production of Bio-energy products, including vegetable oils for biodiesel, grains for ethanol and solid and liquid biomass for electricity production. Our worldwide network (presence in over 20 countries) enables us to source bio-energy feedstock products directly in the origin, where we operate processing plants and storage facilities.
At the same time Nidera Bio-energy trades and markets various bio-energy products, including biodiesel, bio-ethanol and electricity. We can offtake end products either by taking title to the goods or on an agency / marketing basis. Offtake of bio-diesel, -ethanol or electricity can also be done in combination with, or even linked to, the supply of the raw materials.
On the asset-side Nidera is involved in several bio-energy projects. In Ambrosia, Cyprus, Nidera is already producing biodiesel for its own use, and Nidera Argentina is working on producing soybean oil based biodiesel. Furthermore, we have invested in a bio-ethanol facility in Clymers, Indiana, USA. This plant is under construction and should commence operations first half 2007. We are also involved in the establishment of various biodiesel production and storage projects throughout Europe.
Finally, we deliver full logistics services on both the feedstock and bio-product side.
As Nidera is an independent trading house we can function as an equal partner, acting quickly and creatively.