It’s been a tough go for the biofuels market in recent years, but there’s still hope for the industry. Here’s a look at seven publicly traded US biofuel stocks.
Biofuels growth exceeded 20 percent per year between 2001 and 2010, but the industry has struggled in recent years, with production dropping roughly 4 percent over the last five years, according to a recent World Bank report.
Still, all hope is not lost for the sector, particularly in the US. In October of last year, for example, the US Environmental Protection Agency relinquished proposed changes to the country’s biofuels policy.
The move followed “backlash from corn-state lawmakers” who expressed concern that the changes would undermine ethanol demand.
Moving forward, Technavio analysts have projected that the global biofuels market will rise at a compound annual growth rate of nearly 6 percent by 2020.
The report states that “the uncertainty in global fuel prices, energy security, and the constantly rising emission levels have resulted in the growing interest towards alternate fuels.”
As such, here the Investing News Network looks at small-cap and micro-cap US biofuel stocks currently trading on US stock exchanges, with data compiled from InvestSnips. The companies below are listed in alphabetical order, and all numbers and figures were current as of market close on September 6, 2018.
1. Aemetis (NASDAQ:AMTX)
Market cap: US$24.67 million; current share price: US$1.22
First on our US biofuel stocks list is Aemetis, an advanced renewable fuels and biochemicals company that produces advanced fuels and chemicals through acquiring, developing and commercializing technologies that replace “traditional” petroleum-based products through the conversion of first-generation ethanol and biodiesel plants into biorefineries.
The company owns and operates a 60-million-gallon-per-year ethanol and animal feed production facility in California. Aemetis’ operations are also located on the east coast of India, where it owns and operates a 50-million-gallon-per-year integrated fuels and chemical production facility. It produces distilled biodiesel and refined glycerin for customers in Europe and Asia at that operation.
2. Gevo (NASDAQ:GEVO)
Market cap: US$31.37 million; current share price: US$3.88
Gevo is a renewable chemicals and next-generation biofuels company. Its integrated fermentation technology platform, GIFT®, was designed to produce low-cost renewable isobutanol, and is comprised of two key elements: biocatalysts and a proprietary separation unit that removes the isobutanol from the fermentation broth.
With headquarters in Colorado, Govo produces isobutanol, ethanol and high-value animal feed at its fermentation plant in Minnesota. Over in Texas, Gvo operates a biorefinery that concerts alcohols into products that range from renewable jet fuel to octane and even ingredients for plastics.
3. Green Plains (NASDAQ:GPRE)
Market cap: US$712.59 million; current share price: US$17.20
Next on our US biofuel stocks list is Green Plains, a company founded in 2004 and based in Nebraska.
Green Plains is an ethanol producer that currently has a production capacity of 1.5 billion gallons per year, made possible with its 17 plants located around the US. In addition to its ethanol production, at capacity Green Plains expects it will be able to produce roughly 524 million bushels of corn on an annual basis, 4.1 million tons of distiller grains and 34 million pounds of industrial-grade corn oil. Because of this, Green Plains labels itself the second-largest consolidated owner of ethanol plants in North America.
In addition to ethanol production, the company’s other products and services include: distillers grains, corn oil, grain storage, marketing and distribution, cattle and food ingredients.
4. Green Plains Partners (NASDAQ:GPP)
Market cap: US$493.37 million; current share price: US$15.50
Green Plains Partners provides ethanol and fuel storage, as well as terminal and transportation services, through owning, operating, developing and acquiring ethanol and fuel storage tanks. Its primary assets include ethanol storage facilities, fuel terminal facilities and transportation assets.
As it stands, Green Plains Partners currently owns 38 ethanol storage facilities near its parent’s 17 ethanol product plants, with a combined storage of roughly 38.6 million gallons.
5. Pacific Ethanol (NASDAQ:PEIX)
Market cap: US$82.04 million; current share price: US$1.82
With headquarters in Sacramento, California, Pacific Ethanol is a producer of low-carbon renewable fuels with a focus on the western part of the US. As recently as 2015, Pacific Ethanol expanded to the Midwestern US by adding four additional plants.
Through its eight facilities, Pacific Ethanol’s plants have a combined production capacity of 605 million gallons per year, and can produce over 1 million tons annual of ethanol co-products, including wet and dry distiller grains, wet and dry corn gluten feed, condensed distillers solubles, corn gluten meal, corn germ, corn oil, distillers yeast and CO2.
6. Renewable Energy Group (NASDAQ:REGI)
Market cap: US$970.59 million; current share price: US$26.05
Renewable Energy Group provides lower-carbon-intensity products and services, and is also an international producer of biomass-based diesel, and a developer of renewable chemicals. In short, Renewable Energy Group has a diverse portfolio.
Its range of products includes Biodiesel Benefits, REG-9000 Biodiesel, Bioheat Blended Fuel, REG-9000/RHD, Renewable Naphtha, Glycerin, Blended Fuel and Petroleum and Renewable Chemicals. The company also has 15 active biorefineries and a feedstock production facility.
7. REX American Resources (NYSE:REX)
Market cap: US$484.76 million; current share price: US$76.32
Closing out our US biofuel stocks list is Rex American Resources, a company that has interests in six ethanol production facilities. Through those facilities, nearly 684 million gallons of ethanol were shipped over the 12-month period ended on April 30, 2018.
The company’s investment interests include One Earth Energy, NuGen Energy and Big River Resources.
Which US biofuel stocks would you invest in? Tell us in the comments.
This is an updated version of an article originally published by the Investing News Network in 2017.
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Securities Disclosure: I, Amanda Kay, hold no direct investment interest in any company mentioned in this article.