Biofuels’ Upside From $60 Oil

Jim Lane Boom times for two-product strategies? Can feed markets offer relief for the challenges on the fuel side? The energy industry continues to feel the impact of falling energy prices. In Wednesday’s Top Story, we noted that the industry conversation has shifted from long-term fundamentals to a form of “oil price watching” not even the short-term fundamentals, but the kind of paralyzed ticker watching, waiting for the bottom, that comes during stock market crashes. “Barron’s says oil is going to $35bbl,” writes a trusted Digesterati. “The same guy who predicted the...

Veridium Updates License for Exclusive Rights to CO2 Bioreactor

Veridium Corp. (VRDM.OB) announced its execution of an amended license agreement with Ohio University ("Ohio") for its patented bioreactor process for reducing greenhouse gas emissions from fossil-fuelled combustion processes. Veridium's original license with Ohio provided for non-exclusive rights to the technology for the purpose of processing exhaust gas streams from electrical utility power generation facilities, and exclusive rights to the technology for applications involving all other sources. The amended license agreement increases the scope of Veridium's license to provide for exclusivity in all applications, including electrical utility power generation facilities.

Ten Solid Clean Energy Companies to Buy on the Cheap: #7 Deere & Co....

The first and last word in any discussion of biofuels should always be "Feedstock."  Feedstock is the "Bio" out of which biofuels will eventually be made, whether it be corn, sugar, jatropha, algae, palm oil, switchgrass, forestry waste, or municipal solid waste.   Before the era of peak oil, we lived in a world of plenty, which meant that we could squander energy, not only by driving Hummers, but by feeding energy intensive products such as corn crops to livestock, and by dumping "free" sources of energy such as garden waste and used cooking oil into landfills. The era of...

Advanced Biofuels, Ahead of Schedule for Gevo

Jim Lane Next-gen, commercial scale biofuels debut in Minnesota – is the deck cleared for the isobutanol pioneer to soar? Not quite yet, with litigation and production ramp-up pending, but there’s light at the end of the tunnel. In Colorado, Gevo (GEVO) announced it has begun startup of the world’s first commercial biobased isobutanol production plant located in Luverne, Minn. “At 1 p.m. MDT yesterday we made history by initiating production of biobased isobutanol at commercial scale,” said Dr. Patrick Gruber, CEO of Gevo. “One year ago, we broke ground with a startup goal of less than 12...

Cellulosic Feedstock: The Gap Between Switchgrass And High Yield Corn

Jim Lane  As the first wave of cellulosic biorefineries launch is there really enough affordable feedstock for the next wave? Can growers make enough money to justify the switch…and risk? For several years, the questions that have perplexed actors in the advanced bioeconomy have revolved around policy stability and the effectiveness of the new technology: can new advanced fuels be affordably produced and will there be a market for them? Years ago, these were the same questions that were asked about petroleum. Today, when people talk about petroleum and long-term availability (when they choose not to...
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Bargain Priced Alternative Energy Stocks

A review of Crystal Equity Research’s novel alternative energy indices found a number of companies that have delivered exceptional price appreciation over the last year.  Several were reviewed in the recent post “Alternative Returns” on May 8th.  Expectations for growth appeared to be driving the price movement, so the last post “Quest for Growth” featured four companies from the indices for which analysts have posted high growth predictions.  Not unexpectedly some investors have already bid higher the stocks of those promising companies. In this post we go back to the lists to find the companies with both high growth predictions and low price-earnings...

KiOR: Too Early to Jump In

by Debra Fiakas CFA Kior's Columbus Facility Last week cellulosic ethanol producer Kior, Inc. (KIOR:  Nasdaq)reported its strongest quarter production and financial results since the company first started commercial operations at its Columbus, Mississippi facility.  Kior turned out 323,841 gallons of ethanol fuel in the three months ending September 2013, bringing total production for the year to 508,975 gallons.  Along with the third quarter report, management did a bit of boasting over record production of 167,087 gallons in the month of October.  That represents a 2.0...
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ADM Separates Ethanol Business

Prelude to a spin-off? by Jim Lane The Archer Daniels Midland Company (ADM) is breaking news of breaking off their ethanol unit…and a tumbling 40% decline in profit. In Chicago, Archer Daniels Midland Company reported their financial results for the quarter ended March 31, 2019, but most interesting to us, they are looking at separating their ethanol business with the option of spinning it off completely. They are also taking other actions to restructure and deal with challenges they say include weather issues and trade pressures. ADM announced a “series of measures to continue to underpin long-term-value creation” which included: “First, to meet growing customer...

BlueFire Renewables: Solid and Liquid

Jim Lane You just can’t beat the financing of renewable fuels for all-out zaniness. Tragicomedy, anyone? Consider the case of BlueFire Renewables (BFRE). Sometimes, the financing of renewable fuels can start to sound a little like an Abbott & Costello routine. The planned BlueFire plant Allow us to summarize. You can finance a liquid renewable fuel as long as the market is solid, especially if you are making solids, and the market for solids is liquid, and your liquidity is solid. Adding solids to...
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Low Carbon Fuel Rules: From CAFE to LCFS and Everything In Between

The Whole Darn Low Carbon Landscape. How they Work, How they Work Together, and How they Might Work Better by Joanne Ivancic, executive director, Advanced Biofuels USA The Trump Administration is taking a new look at Obama Administration era Co2 regulations.  On the transportation side, these include reviewing Corporate Average Fuel Economy (CAFE) standards; threatening to take away California’s authority to set their own mileage and pollution controls, including CO2 (carbon dioxide) emission reduction standards; and quarreling with the petroleum and biofuels industries over implementation and enforcement of the Renewable Fuel Standard (RFS). Thus, the Clean Air Act (CAA), California’s unique authority...

Gevo Boosts Revenue, Gets Favorable Ruling

Jim Lane In Colorado, Gevo (GEVO)  reported Q2 2015 revenues of $8.9M compared with $7.7M for Q2 2014, and Q2 loss of $6.5 million, compared with $9.0 million in Q2 2014. The increase in revenue during 2015 is primarily a result of the production and sale of approximately $8.0 million of ethanol, isobutanol and distiller’s grains at the Luverne plant. Hydrocarbon revenues were $0.8 million, primarily related to the shipment of bio-jet fuel and isooctane during the quarter. The company highlighted a flight planned with Alaska Airlines, an upcoming wood waste-to-fuels flight with an undisclosed airline,...

Current Structure of the US Ethanol Industry “Problematic”, Says the IMF

The International Monetary Fund released its Spring 2007 World Economic Forecast today. Fuel Vs. Food There is a short sub-section in Appendix 1.1 ("Recent Developments in Commodity Markets") that I thought might be worth sharing with you. If you download the PDF version of the report and scroll down to page 44, you will find the said sub-section under the heading "Food and Biofuels". In it, the IMF notes that food prices (as measured by its own food price index) rose by 10% in 2006, driven partly by a poor wheat crop in certain countries but...

The Brew Barons: Masters of advanced fermentation, driving the redefinition of biofuels: Pt ...

Jim Lane Will the new fermentation technologies completely shatter preconceptions about biofuels and bio-based products – and redefine the way in which Western Civ approaches the production of fuel, food, feed, and fiber? The new Brew Barons are working hard to make that so. See part 1 of  'Brew Barons', here. LanzaTech The LanzaTech process increases industrial energy efficiency by capturing waste gases (CO, CO2) and converting them to valuable fuels and chemicals. LanzaTech provides an opportunity to produce large volumes of low carbon fuel and chemicals at low costs using a countries own resources, reducing dependence on...

Earth to Cellulosic Ethanol: Glad You’re Here, What Took So Long?

Jim Lane  Part I of II Cellulosic ethanol arrives at scale “The five years away forever” put to rest but are there troubling waters still ahead? For whom, and why? There’s a gigantic disconnect between two sections in the country as to whether the United States should be celebrating the success or the failure of cellulosic biofuels biofuels made from crop residues, energy crops, and other feedstocks including municipal solid waste, and which feature a 60 percent or greater full-lifecycle reduction of greenhouse gas emissions compared to conventional gasoline. The supporters On the one...
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Biofuels Rocking The Boats (and Ships)

Companies that rock the boat often end up leading the way for others. While some companies have paved the way for road transportation and others reached high in the sky for aviation, there are some big boats out there that are also looking for alternative renewable fuels. Here are some companies that are answering the call for the maritime and shipping sectors with viable biofuel alternatives, the technologies and innovations, the rough waves that still lie ahead, and how they can reach that destination on the horizon. Gevo and Butanol We start with Gevo (GEVO) and their butanol. Why butanol? It...
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Trump Takes Down Ethanol in Pincer Move

by Debra Fiakas, CFA The Trump Administration is using tariffs on China goods as a trade war tactic to pressure China into relenting to U.S. trade policy demands.  Unfortunately, the fallout has been heavy and widespread.  Farmers have taken the heaviest hits as China has dropped orders for corn and soybeans.  Ethanol producers have been ensnared in the trade war skirmish as well and in recent weeks have been caught an uncomfortable ‘pincer-like’ squeeze by the Trump Administration. Trump’s Environmental Protection Agency has continued its practice of granting waivers to oil and gas refiners, eliminating the requirement to blend biofuel with the refiners’ petroleum...