Novozymes A/S (NZYMB), the world’s largest maker of enzymes used for biofuel, was the second-biggest loser on Copenhagen’s benchmark index today on concern sales may suffer after U.S. ethanol production turned unprofitable.
Novozymes fell as much as 2.2 percent, the biggest decline in the Copenhagen 20 Index after Tryg A/S. Novozymes’ stock retreated 3.4 kroner, or 2.1 percent, to 161.70 kroner at 9:35 a.m. in the Danish capital.
Novozymes controls almost 60 percent of the U.S. market for enzymes used in biofuel production, and bioenergy enzymes accounted for 17 percent of the Bagsvaerd, Denmark-based company’s 2011 revenue. Ethanol futures yesterday fell to the lowest level in more than a week in Chicago trading.
With gasoline consumption waning, the U.S. is on course to miss its ethanol target for the first time and producers aren’t making money at current prices, according to Wallace Tyner, an agricultural economist at Purdue University in West Lafayette, Indiana. U.S. refiners are required to mix 13.2 billion gallons of renewable products with motor fuels this year, up 4.8 percent from last year.
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