Progress of a bioethanol project in Hungary has stalled because of uncertainties in the European ethanol market and investor finance, one of the involved companies said last week.

China New Energy (AIM:CNEL) has paid USD 250,000 to get a 24% equity stake in Visontai Bioetanol Fejlesztő, the project company. On announcing its investment in 2015, CNEL said the plant would be producing 150,000 litres (39,600 gallons) of ethanol from corn per day when it goes operational in 2017.

Now CNEL has learnt that the project is unlikely to proceed this year. It did not provide further details at that point.

The bioethanol plant had a long term off-take deal with an unnamed international commodity trader, according to the previously available information.

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