In the UK, Argus Media reports Landwärme, a prominent German supplier of biomethane, has declared insolvency amidst a dramatic plunge in the prices of greenhouse gas emission reduction quotas. Opting for self-administration, akin to America’s Chapter 11, the company seeks to restructure under its own aegis while continuing operations.
This decision stems from a market destabilized by an influx of mislabeled biodiesel imports and fraudulent upstream emission reduction projects, which have reportedly bled the industry of approximately €4.5 billion. Landwärme pointedly criticized the lack of rigorous enforcement against these fraudulent activities, which it claims could have prevented its financial woes.
As GHG certificates outside of specific biofuel regulations dipped to €100 per tonne of CO2 equivalent in July—a stark drop from €400 in early 2023—Landwärme is now scouring for a robust financial partner to restore stability. The company aims for a swift restructuring to mitigate further financial damage and leverage regulatory support to ensure a future free from similar disruptions. The unfolding scenario highlights the broader challenges facing the biofuel industry in Europe, grappling with regulatory and market uncertainties.
Tags: biofuel, Landwärme, UK
Category: Fuels
