Biodiesel Tax Credit Back In US Budget Deal
by Jim Lane
In Washington, the US Congress passed its budget deal, and among the items in the deal was a retroactive restoration of the $1 per gallon biodiesel tax credit for 2017. The bill did not include a provision for 2018 and future years.
The budget compromise had run into headwinds in the Senate, in the form of a voting delay imposed by Rand Paul of Kentucky, while opposition in the House from a group of Democrats and hardline conservatives had put the bill into some degree of jeopardy.Renewable Energy Group CEO Randy Howard said “We are pleased that Congress recognized...
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...
Aemetis: Indian Breakthrough, California Expansion
Aemetis, Inc. (AMTX: NasdaqCM) just announced sales of biodiesel to gas stations in India. The sales follow on the heels of a significant ruling in November 2018, by the Bombay High Court to remove restrictions on biodiesel that had barred direct to consumer sales by biofuel manufacturers. The breakthrough into the India market is significant for the company, which has been operating a 50-million gallon integrated chemicals and fuels facility in Kakinada, India for several years.
Demand for renewable fuels has been strongest among fast growing economies like India, where decision makers fear dependence upon imported fossil fuels. India produces only about 1% of global...
What I Sold: Dynamotive Energy Systems (OTC:DYMTF)
This entry continues a series on companies I sold as part of a portfolio cleanup prompted by the mess on Wall Street. In the first entry I described what I plan to do with the cash, followed by the reasons why I sold Carmanah Technologies and Pacific Ethanol. UQM Technologies was one I didn't sell. I have not mentioned Dynamotive Energy Systems (DYMTF) before. I have mixed feelings about the company. They use fast pyrolysis to make cellulosic biofuels, which I believe will prove to be one of the more economic pathways to cellulosic biofuels. However, I believe that...
Oh, No! Renewable Energy Group CEO Departs
Oh, No! Renewable Energy Group CEO Departs
Intirim CEO plans no strategy change
Jim Lane
In Iowa, Renewable Energy Group (REGI) announced that Dan Oh has resigned as President and Chief Executive Officer and as a member of the Company’s Board of Directors. The resignation was effective July 3, 2017. The Board of Directors appointed long-time director Randolph (Randy) L. Howard as Interim President and Chief Executive Officer.
Howard is a 33-year veteran of Unocal, has been on the REG board since 2007 so, a familiar face at 67, may not be in the job for the long-haul, but a strong interim pick.
Oh...
Green Star Products Unveils Advanced Biodiesel Reactor
Green Star Products Inc (GSPI) announced that they have developed and successfully commercially tested their advanced biodiesel reactor. GSPI reactors require an amazing two minutes to complete the biodiesel conversion reaction versus over one hour for the rest of the industry. This means that GSPI's processing rate through the reactor is at least 30 times faster than the rest of the biodiesel industry.
New Biodiesel Vehicles and Emissions Reduction Estimates
The makers of the world’s favorite advanced biofuel — a/k/a the biodiesel industry — descended upon Texas to mingle, make and renew ties at the 2018 National Biodiesel Conference. And, to champion new ideas and find new supply chain and distribution partners.
Bummer that there wasn’t a biodiesel tax credit extension on offer. (UPDATE: The new budget includes the biodiesel tax credit.) Bummer that diesel’s getting a bad rap in the press. Bummer that Tom Petty isn’t with us any more to sing:
“I’ll Stand My Ground, I Won’t Back Down,
I know what’s right, got just one life
in a world’s that keeps on...
FutureFuel, Present Buying Opportunity
Tom Konrad CFA FutureFuel Corp. (NYSE:FF) manufactures chemicals, biofuels (mostly biodiesel), and other biobased products. About 60% of revenues have historically come from the Chemicals unit, with the balance of 40% coming from the Biodiesel unit. Both units saw sharp declines in revenues over the last two quarters for reasons that seem likely to be temporary (at least in part.) The stock has sold off sharply as a result, falling from the $18-$21 range this spring to its $12 recent price Biodiesel The entire biodiesel industry has been suffering from the expiration of the biodiesel blender's tax...
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...
What I Sold: Nova Biosource Fuels (NBF)
Preparing for a world in which financing will be much more difficult to come by, I have been selling companies which are likely to need financing in the next couple of years. A listing of the companies I've discussed so far is at the end of this entry. My sale of Nova Biosource Fuels (AMEX:NBF) continues my general moves out of biofuels, also discussed in my entries on Pacific Ethanol and Dynamotive Energy Systems. I have long argued that electric propulsion is a superior way to power ground transport than even "Second Generation" biofuels such as cellulosic ethanol. My...
A Decade Of Unexpected Curves In The Bioeconomy
By Jim Lane
Over the years we’ve all seen a lot of curveballs in the advanced bioeconomy. You see companies like Valero, which lobby the United States Congress with unbridled intensity to get rid of the Renewable Fuel Standard, on the verge of becoming the single-biggest producer of RINs in the United States (with news that they might take capacity at Diamond Green Diesel up to 540 million gallons).
You see companies like Solazyme which love the Renewable Fuel Standard and drive up to nearly a billion-dollar post-IPO valuation based on delivering fuels at volume, then announcing that there are even...
Renewable Fuels’ Dunkirk
by Jim Lane
It’s been a very busy week in Washington DC, the high point being a letter to seven senators sent late Thursday by EPA Administrator Scott Pruitt, who took significant (and as of a few days ago, unexpected) steps toward strengthening the foundation for ethanol and renewable fuels.
The truth? It’s a Trump Administration back-down. EPA overreached on de-clawing the Renewable Fuel Standard on behalf on some grumpy oilpatch donors (known as GODs), and the Trump Administration managed to revive a Grand Alliance around renewable fuels — one that now includes almost 40 members of the United States Senate,...
REG Buying European Biodiesel From Used Cooking Oil Producer
Jim Lane US biodiesel leader heads for the EU – what’s up with used cooking oil, and what is REG’s path forward with the German-based biodiesel producer? In Iowa, Renewable Energy Group and IC Green Energy announced that REG will acquire ICG’s majority equity ownership position in German biodiesel producer Petrotec AG (XETRA: PT8). Closing of the transaction is expected before year end. REG CEO Dan Oh Last month, REG CEO Dan Oh told The Digest, “We’re not done growing, that’s for sure! We’ve done something of...
Betting On Renewable Diesel: Valero or Darling?
Valero Energy (VLO: NYSE) recently disclosed ongoing discussions to expand its renewable diesel production to a second plant that would be built and managed by its Diamond Green Diesel joint venture with Darling Ingredients (DAR: NYSE).
The proposed plant that would be located in Port Arthur, Texas and turn out 400 million gallons of renewable diesel and 40 million gallons of naptha per year. As a food by-products processor Darling has easy access to low-cost used cooking oils and animals fats that serves as the feed stock for Diamond Green’s renewable diesel production.
Valero management has cited increasing global demand for low- to no-carbon...
Biofuel Industry Reacts To EPA New Renewable Fuel Standard
Yay or Nay for EPA? RFS Volumes out for 2020, Biodiesel for 2021 – What’s the reaction from industry?
by Jim Lane
What’s the reaction from industry? Coal for Christmas?
Should Santa bring coal for EPA’s stocking this year? Do the biofuels and agriculture industries think the EPA just put coal in their stocking? Is it thumbs up or thumbs down from biofuel industry advocates on last week’s U.S. Environmental Protection Agency renewable fuel volumes? What about the exempted volumes?
The Ruling – Rotten or Respectable?
First, a bit on the EPA ruling that establishes the required renewable volumes under the Renewable Fuel Standard (RFS) program for...
FutureFuel Profits Preview
by Debra Fiakas CFA Biodiesel and biochemical producer FutureFuel Corporation (FF: NYSE) will report fourth quarter 2015 financial results after the market close today. No conference call will be held due to low attendance on recent calls. The single published estimate for FutureFuel is for $0.28 in earnings per share on $122.5 million in total sales. Despite an increase in this estimate in the last week, the number still represents a significant decrease in earnings compared to the prior-year period. The Company has missed the consensus estimate in both of the last two quarters and we do not...
