Clariant, a sustainability-focused global specialty chemical company, announced its decision on Dec. 6 to shut down its sunliquid bioethanol production in Podari, Romania, and to downsize related activities of the business line Biofuels & Derivatives in Germany (Straubing, Planegg and Munich).
After developing the sunliquid technology, Clariant established its own commercial sunliquid plant in Podari, which began producing bioethanol in the second quarter of 2022. In July 2023, Clariant started a strategic evaluation of the options for the plant after it became clear the plant did not achieve Clariant’s targeted operational parameters.
Clariant management concluded that, given continued losses, the economics of the plant didn’t justify continued ramp up which would require significant additional capital expenditure. Following the announcement, activities within the business line Biofuels & Derivatives that supported the development and ramp-up of the plant will be downsized. Required capabilities to maintain the technology and to fulfill existing contractual obligations will be kept.
“After a careful review of all the strategic options, we have decided to close the Podari operation. We will work closely with employee representatives in Romania and Germany and are committed to finding solutions that are most socially responsible. For a company that focuses as much on innovation as we do, it is imperative to take firm decisions when a project does not fulfill expectations and to execute even more rigorously on our sustainable growth strategy,” said Conrad Keijzer, Chief Executive Officer of Clariant in a press release.