Original-Research: Verbio SE (von NuWays AG): BUY

What happened

Germany and France are considering higher biofuel blends, with German Transport Minister Steffen Bilger citing E20 petrol, containing up to 20% ethanol versus up to 10% in E10, as a possible option. No formal E20 proposal or timetable has been announced, though an initial rollout from 2027 is seen as possible.

Proposed

Global impact / market context

Higher ethanol blends would raise demand for fuel ethanol, which the EU already consumes more of than it produces. That supply gap could benefit ethanol producers such as Verbio, supporting revenue and capacity use, though any change remains only under consideration and not yet final.

Analyst inference

The E20 discussion follows a German-French proposal to ease the EU's 2035 carbon dioxide reduction target for new cars from 100% to 90%, which would let combustion-engine vehicles stay on sale. Looser rules and higher blends together could extend fuel demand beyond current expectations.

Analyst inference

What to watch

1. Watch whether Germany or France formally propose an E20 blend or set a timetable; none has been announced yet, so the 2027 rollout remains only a possibility, not a decided plan. Confirmed
2. The proposed easing of the EU's 2035 carbon dioxide reduction target from 100% to 90% is awaiting approval and would allow combustion-engine vehicles to remain on sale beyond 2035. Proposed
3. Track EU ethanol supply versus demand, since 2025 consumption of about 5.0mt exceeded production of about 4.5mt; a shift toward 20% blending would widen that gap and lift producer volumes. Analyst inference

Evidence

• eqs-news.com