climate change in plain sight

Opportunity Hiding in Plain Sight

Information asymmetry, climate investing and the active management edge. By Garvin Jabusch The theory of efficient markets says all stock prices are perpetually accurate, because investors always have complete and up-to-date information about their holdings. But as any casual observer knows, information and topical awareness are not evenly distributed, even among professional analysts. Reality is always far more complicated than equity markets can quickly assimilate, meaning information asymmetry is a constant. While usually considered a type of market failure, information asymmetry is frequently used as a “source of competitive advantage.” The person with the most information is best equipped to make the best...
Charging EVs and PHEV

List of Electric Vehicle and Plug-In Hybrid Electric Vehicle Stocks

Electric Vehicle (EV) and Plug-in Electric Vehicle (PHEV) stocks are publicly traded companies which produce EVs or PHEVs, their components, or charging infrastructure. AeroVironment, Inc. (AVAV) Blink Charging Co. (BLNK) BYD Company, Ltd. (BYDDY) Enova Systems, Inc. (ENVS) EEStor Corporation (ZNNMF) Envision Solar International (EVSI) GreenPower Motor Co. (GPV.V) Kandi Technologies Corp. (KNDI) Leo Motors (LEOM) Nio Inc. (NIO) Tesla Motors, Inc. (TSLA) UQM Technologies (UQM) VMoto Limited (VMT.AX) Workhorse Group Inc. (WKHS) ZAP (ZAAP) If you know of any EV or PHEV stock that is not listed here, but which should be, please let us know in the comments. Also for stocks in the list that you think should be removed.
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...
Aemetis logo

Biofuels & Biobased Earnings Roundup: Aemetis

by Jim Lane The Top Line. In California, Aemetis (AMTX) reported that Q2 revenues increased $4.3 million and gross margins increased by $1.1 million compared to the second quarter of 2017. Similarly, during the first half of 2018, revenues increased $15.7 million and gross margins increased by $3.5 million compared to the first half of 2017. Revenues were $45.0 million for the second quarter of 2018 compared to $40.8 million for the second quarter of 2017, driven by an increase in ethanol sales volumes from 15.6 million gallons to 16.4 million gallons and by stronger wet distillers grain and glycerin demand and pricing. Operating loss...
Amyris logo

Biofuels & Biobased Earnings Roundup: Amyris

by Jim Lane The Top Line. In California, Amyris (AMRS) reported Q2 GAAP revenue for the second quarter of 2018 of $24.8 million, compared with $25.7 million for the second quarter of 2017. Grants and collaborations revenue was $11.4 million for the second quarter of 2018 compared with $10.3 million for the year-ago period. The company noted that Q2 revenue was $24.8 million compared with the same period in 2017 of $21.7 million when adjusted for the low margin product sales on contracts assigned to DSM (DSM.AS). This reflects 15% growth on an absolute basis. GAAP net loss for the first half was $89.1...
novozymes logo

Biofuels & Biobased Earnings Roundup: Novozymes

by Jim Lane The Top Line. In Denmark, Novozymes (Copenhagen:NZYM-B; OTC:NVZMY) reported 4% organic sales growth for the first half and a 5 percent jump in Q2 with bioenergy reporting a 14% jump. Overall, net profit grew 5% and the company affirmed its 2018 guidance. Sales dipped to DKK 7,018m from DKK 7,278m, and EBITDA was flat at DKK 2,464m, although we primarily attribute that to currency shifts. The Big Highlights. Growth in Food & Beverages and Agriculture & Feed; Bioenergy particularly strong. Good ramp-up of recent product launches. +7% organic sales growth in emerging markets; Freshness & hygiene platform in Household Care developing according to...
Corbion logo

Biofuels & Biobased Earnings Roundup: Corbion

by Jim Lane The Top Line. In the Netherlands, Corbion (CRBN.AS; CSNVY) reported H1 2018 sales of € 439.2 million, a decrease of 4.9% compared to H1 2017, entirely due to negative currency effects. Organic sales growth was 3.1%. EBITDA excluding one-off items in H1 2018 decreased by 19.0% to € 71.5 million due to negative currency effects and the inclusion of the Algae Ingredients business. Organic EBITDA excluding one-off items increased by 1.2% in H1 2018. The Big Highlights. The acquisition of the Algae Ingredients business (TerraVia assets + SB Renewable Oils joint venture) has added an algae fermentation platform to Corbion. In H1 2018,...
DSM logo

Biofuels & Biobased Earnings Roundup: DSM

by Jim Lane The Top Line. In the Netherlands, Royal DSM (Amsterdam: DSM.AS; US OTC:KDSKF; US ADR:RDSMY) reported a good H1 with organic sales growth in underlying business estimated at 10% and adjusted EBITDA growth of underlying business estimated at 7%, with sales of €4,794 million and adjusted EBITDA of €771 million. The Big Highlights. Nutrition: an estimated 8% underlying organic sales growth and Adjusted EBITDA growth of underlying business estimated at 6%. Materials: 7% organic sales growth and Adjusted EBITDA growth of 5%. DSM also confirmed its full year outlook 2018, as provided at Q1 2018, and expects an Adjusted EBITDA growth towards...
Energy A Human History by Richard Rhodes

Richard Rhodes, “Energy: A Human History”

Richard Rhodes has written an amazing book. He aspired to tell the tales of energy transitions over the past 400 years. His Energy: A Human History accomplishes that task. The book is daunting in size for non-required reading. It is filled with brief stories of this or that device or discovery or development, and almost overwhelming in both scope and detail. I wondered, at times, when the payoff would come. My advice: If you are at all interested in the topic, stick with it. To my economics-trained mind the book lacks analytical structure. One story after another, linked together by fuel source or technology, layer...
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...
cattle feeding

More Than Ethanol at Green Plains

Last week ethanol producer Green Plains (GPRE:  Nasdaq) reported financial results for the quarter ending June 2018.   As expected the company reported a net loss, but actual results were far better than expected.  The news gave traders a reason to celebrate with bids that led to a gap higher at the opening on the first day of trading following the announcement.  Cooler heads came into the market as the day wore on and the stock closed below the open on heavy volume. Nonetheless, the stock finished the week higher and appears prepared to challenge lines of volume-related price resistance in the trading sessions ahead.    There may...
Power production from wind and solar

List of Power Production Stocks

Alternative energy power production stocks are companies whose main business is the production and sale of electricity from alternative energy installations, such as solar farms, wind farms, hydroelectric generators, geothermal plants, cogeneration facilities, and nuclear plants. 7C Solarparken AG (HRPK.DE) Acciona, S.A. (ANA.MC, ACXIF) Atlantica Yield plc (AY) Algonquin Power & Utilities Corp. (AQN, AQN.TO) Avangrid, Inc. (AGR) Bluefield Solar Income Fund Ltd. (BSIF.L) Boralex (BLX.TO, BRLXF) Brookfield Renewable Partners L.P. (BEP) Capital Stage AG (CAP.DE) Edisun Power Europe AG (ESUN.SW) Elecnor, S.A. (ENO.MI) Foresight Solar Fund plc (FSFL.L) Global X YieldCo ETF (YLCO) Greencoat UK Wind PLC (UKW.L) Innergex Renewable Energy Inc. (INE.TO,INGXF) John Laing Environmental Assets Group Limited (JLEN.L) Juhl Energy, Inc. (JUHL) NextEra Energy Partners,...
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...
Nebraska Sandhills

Investing in in Prairie Winds

Last week NextEra Energy, Inc. (NEE:  NYSE) broke ground on its newest wind power project.  The company plans to build 71 wind towers in Wayne County, northeastern Nebraska, outfitting each with General Electric (GE:  NYSE)turbines.  Called the Sholes Wind Energy Center, the wind farm will have a collective generating capacity near 160 megawatts and require $200 million in to build.  Construction is expected to begin in March 2019, to meet a December 2019 planned operational start. The Omaha Public Power District (OPPD) has already signed a twenty-year power purchase agreement with NextEra, making return on the Sholes project close to guaranteed.  OPPD is the twelfth largest public power utility in the...
Enphase M-Score

Hopping Off The Short Enphase Bandwagon

by Tom Konrad, Ph.D., CFA Last week, I wrote that I'd taken a short position in Enphase Energy Inc. (ENPH). I have now closed out that position and don't intend to go short again. My decision to go short was based on four factors: I'm worried about risk in the overall market, and so am considering opportunistic short positions as a hedge. Prescience Point Capital Management released a report accusing Enphase of earnings manipulation. The report seemed well-researched from a purely accounting point of view. My favored indicator for avoiding companies which might be engaging in earnings manipulation, Beneish M-Score was...
demand charge impacts on DC Fast Charger costs

EV Fast Charging Disincentives

by Daryl Roberts DC Fast Chargers (DCFCs) and Tesla superchargers are a key element in electric vehicle (EV) charging infrastructure that could facilitate wider adoption of EVs by enabling recharging that comes to resemble the time currently taken for gas station stops, and thereby reducing “range anxiety” for drivers. However, the pricing structure for electrical costs incurred at commercial DC fast chargers is currently prohibitive, because it includes a special fee called a “demand charge”. Rate design in a number of states includes this additional charge, based on the “peak rate” on electric power consumed in kW. In New York,...