One of Europe's biggest ethanol producers, Spain's Abengoa, told Platts that all production facilities are running normally with no plan to stop.
In a statement late Thursday evening, the company said: "Abengoa's plants continue operating as normal, and at present, no stops are expected to take place." Abengoa operates the largest ethanol facility within the European region, Rotterdam's 127 million gallon/year (480 million liters/year) ethanol production plant, along with four other plants in Spain and France.
Financial concerns surrounding the company had led many market participants to question its ability to produce. Shares in Abengoa, listed on the Madrid Bolsa, were temporarily suspended Wednesday, following the announcement that a potential investor had dropped out of negotiations to take a substantial stake in the producer.
"Abengoa is a wild card," one trader said, saying that uncertainty over Abengoa production was a key driver of European ethanol prices.
T2 ethanol hit a three-year high last week at Eur682.50/cu m (around $724/cu m). It was assessed Thursday by Platts at Eur620.50/cu m.
In its statement to Platts, Abengoa did not say at what levels its plants were producing. A number of sources have questioned the company's ability to meet spot demand, saying Abengoa is concentrating energies on meeting term contracts.
