The global biofuels market was valued at US$136 billion in 2019 and is anticipated to reach $154 billion in 2024. Despite previous dips in the sector, the outlook for the biofuel industry and US biofuel stocks remains positive.
Driving forces behind the rising biofuel demand include improved living conditions in emerging countries, and demand for alternatives to gasoline, the report further noted. In 2018, the United States was ranked as the largest biofuel producing country. US lawmakers are looking to include biofuels aid in the next coronavirus relief package.
What’s more, there are cleantech innovations continually happening that could move the needle forward, such as: drop-in biofuels, the use of enzymes to boost bioprocessing and the use of food waste over fresh crops.
Corporations are taking notice. In July 2019, BP (NYSE:BP) and Brazil’s Bunge (NYSE:BG) joined forces in an ethanol deal. Together, the companies established BP Bunge Bioenergia, which will produce ethanol and has the capacity to produce 32 million tonnes of sugarcane annually. In addition, the company will be able to use the waste biomass from the sugarcane to produce electricity.
On the small-cap and micro-cap end, here the Investing News Network takes a look at US biofuel stocks currently trading on US stock exchanges using data compiled from InvestSnips. The companies below are listed in alphabetical order, and all numbers and figures were current as of market close on July 20, 2020.
Market cap: US$16.97 million; current share price: US$0.82
First on our US biofuel stocks list is Aemetis, an advanced renewable fuels and biochemicals company. It 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. The company produces distilled biodiesel and refined glycerin for customers in Europe and Asia at that operation.
Market cap: US$20.58 million; current share price: US$0.56
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 it 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, Gevo operates a biorefinery that concerts alcohols into products that range from renewable jet fuel to octane and even ingredients for plastics.
Market cap: US$416.52 million; current share price: US$11.73
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 1.1 billion gallons per year, made possible with its 13 plants located around the US. In addition to its ethanol production, at capacity Green Plains expects it will be able to produce roughly 3.1 million tons of distiller grains. 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, cattle and food ingredients, as well as marketing and distribution.
Market cap: US$165.61 million; current share price: US$7.15
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.
Green Plains Partners currently owns 32 ethanol storage facilities near its parent’s 13 ethanol product plants, with a combined storage of roughly 1.1 billion gallons.
Market cap: US$45.71 million; current share price: US$0.82
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. In 2015, Pacific Ethanol expanded to the midwestern US by adding four additional plants.
Through its nine facilities, Pacific Ethanol’s plants have a combined production capacity of 605 million gallons per year and can produce over three million tonnes of ethanol co-products annually, including wet and dry distillers grains, wet and dry corn gluten feed, condensed distillers solubles, corn gluten meal, corn germ, corn oil and distillers yeast.
Market cap: US$1.01 billion; current share price: US$25.83
The largest biodiesel producer in the US, Renewable Energy Group is a provider of lower-carbon-intensity products and services and has a diverse portfolio. The company is also an international producer of biomass-based diesel and a developer of renewable chemicals.
Renewable Energy Group’s range of products includes REG-9000 Biodiesel, Bioheat blended fuel, REG-9000/RHD, renewable naphtha, glycerin, blended fuel and petroleum and renewable chemicals.
Market cap: US$426.18 million; current share price: US$68.91
Closing out our US biofuel stocks list is Rex American Resources, a company that has interests in six ethanol production facilities. Through those facilities, 660 million gallons of ethanol were shipped over the 12-month period ended on January 31, 2020.
The company’s investment interests include One Earth Energy, NuGen Energy and Big River Resources.