Gevo Restarts Production
Jim Lane As Gevo recommences the switchover to bio-based isobutanol at its first commercial plant, we look in-depth at 2012′s contamination issues and the prospects and path forward. In Colorado, Gevo, Inc. (NASD:GEVO) announced that it has resumed commercial production of isobutanol at its Luverne, Minn. plant in single train mode, successfully utilizing its proprietary Gevo Integrated Fermentation Technology (GIFT). “I am pleased to report that we have been successful in operating our full scale fermentation and our GIFT separation system that separates the isobutanol from the fermentation broth. This serves to further validate our...
EPA’s 2018 Renewable Fuel Targets Disappoint Producers
In Washington, the Environmental Protection Agency released its final Renewable Fuel Standard renewable volume obligations for 2018. The agency finalized a total renewable fuel volume of 19.29 billion gallons , of which 4.29 BG is advanced biofuel, including 288 million gallons of cellulosic biofuel.
As the Renewable Fuels Association explained: “That leaves a 15 BG requirement for conventional renewable fuels like corn ethanol, consistent with the levels envisioned by Congress in the 2007 Energy Independence and Security Act. The 2018 total RFS volume finalized today represents a minor increase (10 million gallons) over the 2017 standards, and a modest increase...
EPA Issues On-time, Robust Renewable Fuel Standard For 2017-18
Jim Lane In Washington, the US Environmental Protection Agency released the 2017 renewable fuel volume obligations (and the 2018 volume obligations for biomass-based diesel), with a strong push beyond what has been termed the “blend wall” and stimulating refiners to implement more “cost-effective changes at their refineries to blend more renewable fuel.” The agency finalized a total renewable fuel volume of 19.28 billion gallons, of which 4.28 BG is advanced biofuel and 311 million gallons is cellulosic biofuel. Thus, the implied RVO for conventional biofuels like corn ethanol will be 15BGup from the 14.8 BG proposed in May. “Renewable...
Biodiesel’s Nightmare: Renewable Diesel
Until algae farms move from the research and demonstration stage, biodiesel usage is going to be tightly constrained by available feedstock. The feedstocks for biodiesel are oils and fats, which naturally occur in quantity only in animals or the seeds of plants. As such, the quantity of oil available is much smaller than the sugars, starches, and cellulose which occur not only in the seeds and fruits of plants, but also in the stems and leaves, and can be used to make ethanol. Because sugarcane contains the best ethanol feedstock, sugar in the stem (not just the...
New York, New York!
While New York's Mayor Michael Bloomberg was busy unveiling a package of measures aimed at making NYC green (including reducing CO2 emissions by 30% by 2030), the state's Governor, Eliot Spitzer, was making his reservations about corn ethanol known, as reported in the Globe & Mail. This adds yet one more (powerful) voice to the chorus of those skeptical about the viability of the corn ethanol industry. The article also notes that Dr. Dan Kammen, an influential Berkeley academic and advisor on climate change to California Governor Arnold Schwarzenegger, is also among those who doubt that corn...
ADM and Siouxland Ethanol Announce Marketing Agreement
Archer-Daniels-Midland Co. (ADM) and Siouxland Ethanol LLC are pleased to announce the formation of an ethanol marketing agreement. As part of this marketing agreement, ADM will market all ethanol produced by Siouxland Ethanol at its forthcoming 50 million gallon Jackson, Nebraska facility. Construction has begun and the plant is expected to be operational in early 2007. In addition to producing ethanol, the plant will produce an estimated 165,000 tons of distiller grains on an annual basis.
A Deal A Day At Renewable Energy Group
They are hoopin’ it up in Ames, Iowa these days. Local producer Renewable Energy Group (REGI: Nasdaq) completed the acquisition of Dynamic Fuels, Inc., one of the first renewable diesel biorefineries in the country. The Dynamic Fuels facility located in Geismar, Louisiana has 75 million gallon annual nameplate production capacity. Renewable Energy Group (REG) already had eight other fully operational biorefineries with a nameplate production capacity near 250 million gallons per year. REG also has a demonstration plant in Oklahoma for renewable chemicals. It was a two-part deal. First REG struck a deal with for most of the...
Darling’s Renewable Diesel Diamond
In July 2013, Darling Ingredients (DAR: NYSE) and its joint venture partner Valero Energy (VLO: NYSE) commissioned the largest facility in North America to convert waste animal fats into renewable diesel. The facility was strategic located adjacent to Valero’s petroleum refining installation in Norco, Louisiana.
At the time the facility was capable of pumping out 12,000 barrels of renewable diesel per day that could be dropped directly into Valero’s distribution network and blended with fossil fuel. Even at that production level the facility showed promise to deliver strong dividends back to its owners. The partners named their venture Diamond Green Diesel and celebrated the unparalleled achievement.
The two partners in Diamond Green...
Darling Ingredients: At the Margin
by Debra Fiakas CFA This week Darling Ingredients (DAR: NYSE) reported earnings of $100,000 on net sales of $874.7 million in the first quarter ending March 2015. Darling is a recycler of sorts, collecting by-products of the food production industry and recycling the left-overs and waste into proteins, fats and leathers. Nothing goes to waste. Every last chicken feather, hide, gallon of used cooking grease and cake crumb gets up-cycled to a usable material for feed, food, fuel or clothing. Its customers include pet food producers, personal care manufacturers and textile users, among others. Darling used...
Abengoa Buys in to Dyadic’s Technology: Should Investors Buy the Stock?
Dyadic International's (PINK:DYAI) technology looks like the real deal. Does that make Dyadic a good investment? Dyadic International (PINK:DYAI) announced yesterday that Abengoa (MCE:ABG, PINK:ABGOY) has expanded its exclusive license agreement for a payment of $5.5 million. History I last wrote about Dyadic back in October 2009, when I called it "A Stock to Avoid," based on the facts that the company was not then publishing financial statements, was unprofitable and had insufficient reserves when it had last published financials, had had a dispute with the SEC over security law violations, and I...
EPA Ups Renewable Diesel Mandate By 30%
Jim Lane Biodiesel pump photo via Bigstock What will bigger targets mean for producers, livestock, obligated refiners, and the diesel-using public? In Washington, the EPA issued its final rule for 2013 establishing 1.28 billion gallons as next year’s biomass-based diesel volume requirement under the Renewable Fuel Standard (RFS), up from 1.0 billion gallons in 2012. “This 1.28 billion gallon level is in-line with what the EPA had originally proposed for 2013 dating back to last year,” commented Raymond James energy analyst Pavel Molchanov. “However, the...
Gevo: Clever Escape Or Watery Grave
Jim Lane This week, Gevo (GEVO) reported its Q2 financial results, reaffirmed its guidance on production cost targets, lengthened out the timing on its production targets, and placed all the near-term chips on marine biofuels. Market reaction was generally pretty hateful, with the stock dropping 33% today. Investors seem to have translating Gevo’s messaging thus: Gevo says: We’re staking our near-term prospects on marine biofuels. Investors hear: We’re underwater. Gevo says: Timing delay in our isobutanol gallonage, took longer to get the fixes implemented, we’ll make up on the back side. May need more equipment. Investors hear:...
Gevo’s Glow
Specialty chemicals developer Gevo, Inc. (GEVO: Nasdaq) is celebrating a string of market wins for its renewable chemicals and fuels. Since its beginning thirteen years ago this month, Gevo has been doggedly perfecting its synthetic biology and chemical technologies and turning it into products that are in demand by consumers and industry. Last week shareholders were treated to an announcement by the U.S. Environmental Protection Agency (EPA) raising the amount of isobutanol for on-road use to 16% blend level from 12.5%. As a producer of renewable isobutanol Gevo will be a direct beneficiary of the EPA action. Following directly on the heels of that news,...
Solazyme: Microbes in the Dark
by Debra Fiakas CFA The previous post “Solazyme's Detours on the Way to Algae Biofuel” began a discussion of Solazyme, Inc. (SZYM: Nasdaq), a self-described “oil developer” targeting three commercial markets that are known heavy oil users: chemical and fuel, nutrition and skin care. Solazyme touts its ability to serve customers with oils tailored to their specific needs, creating a paradigm shift from the status quo where formulators and manufacturers must design around the limitations of conventional oils. Solazyme is attempting to harness the oil producing capability of microalgae - the most diminutive...
Green Plains’ Cattle Drive
As quickly as the ethanol producer jumped into the cattle business, Green Plains (GPRE: Nasdaq) has sold off half of its Green Plains Cattle Company to a group of investment funds for $77 million. Operating at six locations in Colorado, Kansas, Texas and Missouri, the company has the capacity to feed 355,000 head of cattle each year. The cattle business contributed $271 million to total revenue in the most recently reported quarter ending June 2019, delivering a modest operating profit near $7.3 million.
There has been considerable stress in the feed cattle industry. The number of cattle in feedlots is down compared to last year, an unusual development...
Is Gevo still Gevolicious?
Jim Lane Though a panic-inducing analyst report circulates on the internet, the consensus among analysts continues to be bullish on the biobased isobutanol pioneer. With Gevo, Inc.’s stock (NASD:GEVO) in the toilet as of now, trading at $2.00 the company has a market cap of $79 million and $92 million in the bank. When any company much less one with a hot technology is trading at less than its cash-on-hand value, it’s both rare and a reason to reflect on the financial state of affairs. Especially since alarming reports such as David...
