Synthetic Fuels and Drop-in Biofuels

synthetic fuel

List of Synthetic Fuel and Drop-in Biofuel Stocks

Synthetic fuel stocks are publicly traded companies creating transportation fuel from non-liquid feedstocks such as natural gas, coal, and municipal waste.  Drop-in biofuel stocks are publicly traded companies creating transportation fuel from organic feedstock that can be used, transported, and stored by conventional petrofuel infrastructure.  A synthetic fuel is a biofuel if it is made from organic feedstock.  It is a drop-in fuel if it is compatible with the existing infrastructure for petroleum based fuels. Amyris (AMRS) BioAmber (BIOA) Codexis (CDXS) Darling Ingredients (DAR) Gevo (GEVO) Global Bioenergies (ALGBE.NX) Neste, Inc. (NEF.F, NESTE.HE, NTOIF, NTOIY) N-Viro International Corp. (NVIC) Renewable Energy Group (REGI) Sasol Ltd. (SSL) Velocys, PLC (VLS.L) If you know of any synthetic fuel or...

The Best Peak Oil Investments, Part VI: Barriers to Substitution

Tom Konrad CFA There are two types of solution to the liquid fuels scarcity caused by stagnating (and eventually falling) oil supplies combined with growing demand in emerging economies.  The most obvious is to find a substitute to replace oil.  These substitute have barriers to their use as a replacment petroleum based fuel.  Understanding those barriers also leads us to the investment opportunities that arise from these substitutes.  As I wrote the first five parts of this series, looking into potential substitutes for gasoline and diesel, it was clear that many potential substitutes would need...

Velocys: A Key To Advanced Biofuels At Scale

Jim Lane Four new technologies approach scaled operations, all with one element in common – Velocys (VLS.L) technology on the back-end. Why Velocys, why now? The Digest investigates. In Oklahoma, Southeast Oregon, Eastern Ohio, and a site near London we’re about to see the commercial-scale debut of Velocys technology, a smaller scale gas-to-liquids processing technology that converts natural gas or biomass into premium liquid products, such as diesel and jet fuel. In this case, specifically designed for smaller scales, resulting in standardized modular plants that are economic, easier to ship and faster to install, at lower risk,...
biodiesel operating margins

Renewable Energy Group’s New CEO: C.J. Warner

by Jim Lane In Iowa, white smoke has emerged from the Renewable Energy Group (REGI) conclave: Tesoro EVP and former Sapphire Energy CEO C.J. Warner has been named chief exec of Renewable Energy Group, at a pivotal moment for biodiesel in Washington and around the world and amidst a boom for renewable diesel like the world has never seen. REG has been making good progress with Wall Street under interim CEO Randy Howard and its share price has been on the rise, and the plants have been humming along nicely churning out hundreds of millions of gallons of biodiesel and the liquid gold...
gevo logo

Biofuels & Biobased Earnings Roundup: Gevo

by Jim Lane The Top Line. In Colorado, Gevo (GEVO) reported Q2 revenues of $9.4 million compared with $7.5 million in the same period in 2017. During the second quarter of 2018, revenues derived at the Luverne Facility related to ethanol sales and related products were $8.8 million, an increase of approximately $2.0 million from the same period in 2017. This was primarily a result of increased ethanol production and distiller grain prices in the second quarter of 2018 versus the same period in 2017. Non-GAAP cash EBITDA loss in the three months ended June 30, 2018 was $2.6 million, compared...

Milestone for Gas-to-Liquids Fuel Plant

Syntroleum Corp (SYNM) commemorated the successful production of more than 140,000 gallons of ultra-clean fuels at its gas-to-liquid (GTL) fuels plant at Port of Catoosa, Oklahoma. The plant also manufactured 60,000 gallons of additional products, such as syncrude. Gathered to mark the occasion were representatives from Syntroleum, the U.S. Department of Energy (DOE), Marathon Oil Company and Integrated Concepts and Research Corporation (ICRC).

War With Iran? Buy Alternative Energy Stocks.

September is starting out as the month of speculation about a massive three day air strike on Iran.  Is Bush ready to attack Iran while our troops are still trying to stabilize both Afghanistan and Iraq?  In February, administration officials were denying it.   The preparations now going on could simply be the stick part of a negotiating strategy; the bad cop to Russia's good cop.  But Bush's chances of successful cooperation with Putin could be better. What if? If Bush does launch a massive three day air strike on Iran, what will that mean for alternative energy stocks?  I...
fractionation of corn

Corn Fractionation Improving Ethanol Production

Ethanol and isobutanol producer Gevo, Inc. (GEVO:  Nasdaq) is installing equipment in its Luverne, Minnesota plant to improve efficiency in corn processing.  The company is leasing a proprietary corn fractionation or slicing process developed Shockwave, LLC based in DesMoines, Iowa.  The new equipment is intended to increase by-product output, including feed protein products and food-grade corn oil.  With sales of more valuable by-products Gevo expects to improve overall profit margins.  Shareholders can expect to see results after the first quarter 2019, when the equipment installation is expected to be complete. Shockwave keeps a low profile with no corporate website and no one to answer phone calls.  However,...

Rentech After Fischer-Tropsch

by Debra Fiakas CFA A long article appearing in early March 2014 on Biofuels Digest about Emerging Fuels Technology (EFT) gave me pause.  The article has since been removed from the site but it was an interesting primer on Oklahoma-based EFT’s use of the Fischer-Tropsch process to convert carbon-based feedstock to liquid fuel, otherwise called Gas-to-Liquids. While Emerging Fuels Technology has been listed in Crystal Equity Research’s Alternative Chemicals Group of the Beach Boys Index of companies trying to harness energy from the sun through biomas, I must admit the company had not been taken seriously.  ...

Aviation Biofuels: The Year of the Tree

by Jim Lane When the world’s leaders for sustainable aviation fuels have a general meeting the week before the COP24 global climate sessions (this year in Poland), you can bet that the focus will be breaking the “You Can Have Two out of Three Conundrum” of aviation fuels. Which is to say: affordable, available at scale, and sustainable, pick any two of the three. Fossil fuels are (usually) affordable and always available at scale. Sustainable jet fuels that are available at scale have generally not been affordable to date, and affordable sustainable fuels have been mostly explored at bench scale, so...
To Renewable Diesel

Conversions To Renewable Diesel

by Helena Tavares Kennedy The seasons are changing in many parts of the world right now, but what really is changing this autumn is how the world is looking at renewable diesel. Phillips 66 and REG’s announcement about a new renewable diesel plant on the U.S. West Coast planned for 2021 comes after a notable increase in refineries that are being converted and changed over to renewable diesel. Change is good, especially in this case. As Bob Dylan sang, “For the loser now, Will be later to win, For the times they are a-changin’.” And who knew he was singing about the RFS...

The Future Should Be Bright for Coal-to-Liquids

You are at a cocktail party somewhere, and, after joining a random group of revelers, you utter the following words: “If I say alternative fuel, what’s the very first thing that comes to mind…don’t even think about it, just answer!��? If this fiesta was taking place last night, 9 folks out of 10 would have answered “ethanol��?. The remaining 10% would have probably made-up a mix-bag of “biodiesel��?, “hydrogen��?, and, in extremely rare cases, “synthetic fuels��?, also known as synfuels. Ten years from now, I bet you anything that far more than 10% of the general public will be...
oil price spurs biofuels

The Return of Advanced Biofuels

by Jim Lane For several years now we have seen a significant number of players pivoting from biofuels towards smaller but higher-value markets in chemicals, nutrition,  nutraceuticals, pharma, materials, flavorings, fragrances, cosmetics and more. We’ve reported on the proliferation of applications both in the Digest and in What’s Nuu? and indeed there’s been so much that’s Nuu, it’s been dizzying at times with all the spinning and twirling. Capital costs and policy uncertainty have played their part, but the foot on the pedal for many has been oil prices. The scale of operations to compete with oil prices in the 2014-2017 period...

REG Enters Renewable Diesel With Syntroleum Purchase

Jim Lane In Oklahoma, and Iowa, Renewable Energy Group (REG; NASD:REGI) announced that it would acquire substantially all of the assets of Syntroleum Corporation (NASD:SYNM), and assume substantially all of the material liabilities of Syntroleum, for 3,796,000 shares of REG common stock worth $40.08 million at today’s market close. The purchase price subject to reduction in the event that the aggregate market value of the REG common stock to be issued would exceed $49 million or if the cash transferred to REG is less than $3.2 million). “This will help us grow our advanced biofuel business, enhance our intellectual...
low-sulfur Diesel Crisis

The Low Sulfur Diesel Crisis of 2020 And How To Prevent It

“The global economy likely faces an economic crash of horrible proportions in 2020, not for want of a nail but want of low-sulfur diesel fuel,” writes renowned energy analyst Phil Verleger in a note this month titled “$200 Crude, the Economic Crisis of 2020, and Policies to Prevent Catastrophe”. Not good timing for a White House re-election effort if, as expected, the blame falls on lack of preparedness in the 2017-2020 run-up to the projected crisis.. It’s a dire scenario but there’s hard data behind it, and though few go as far as Verleger, almost every expert is warning of a...

Rentech’s Wood Saw Hits a Knot

by Debra Fiakas CFA Last week Rentech, Inc. (RTK:  NYSE) revealed plans to idle its wood pellet production facility in Wawa, Ontario Canada.  To operate efficiently the plant requires additional repairs and upgrades beyond the replacement of conveyors that was completed in Fall 2016.  Beside the fact that the additional repairs were not included in the regular capital budget, Rentech management has apparently determined the expenditure is not economic given profits from Wawa.  When Rentech reports financial results for the fourth quarter ending December 2016, shareholders will be treated to an asset impairment charge for the Wawa facility....