HAMBURG, July 8 (Reuters) - German second generation biofuels company Choren Industries GmbH has declared insolvency, a company spokesperson said on Friday.
Choren is building Germany’s first biofuels plant producing using second generations of biomass raw materials.
This aimed to replace first generation biofuels plants using food raw materials such as grains and vegetable oils.
The reason for the insolvency was financial difficulties with the start up of the company’s test plant, said a statement from interim insolvency administrator Kanzlei Kuebler.
The plant is being built in Freiberg in south Germany to produce about 15,000 tonnes a year of biomass-to-liquid (BTL) fuels largely using wood products and wood-based waste.
The company will continue operations and it is hoped to start talks with new investors shortly, Kuebler said.
The company’s subsidiaries in China and the U.S. are not covered by the insolvency declaration, Kuebler said.
A series of biofuel companies have declared insolvency in recent years after the German government changed course on biofuels, taxing the green fuels and scaling back previous incentives.
Reporting by Michael Hogan; editing by Keiron Henderson firstname.lastname@example.org Reuters messaging: email@example.com +49 40 419 03 4275