Ethanol

by Tom Konrad, Ph.D., CFA Last week, two of the stocks in my Ten Clean Energy Stocks model portfolio cut their dividends.  Covanta Holding Corp (CVA) dropped its quarterly payout from $0.25 to $0.08 (a 68% cut) while Green Plains Partners (GPP) slashed its quarterly distribution from $0.475 to $0.12, a drop of 74.75%. Before reducing their dividends, both companies had payout ratios near 100%, meaning that substantially all of their free cash flow was going to pay dividends.  In general, companies are very reluctant to cut their dividends because it is a signal that their management thinks they cannot grow...

By Jim Lane The case Last week’s decision stems from a May 2018 challenge brought against EPA in the U.S. Court of Appeals for the Tenth Circuit by the Renewable Fuels Association, the National Corn Growers Association, National Farmers Union, and the American Coalition for Ethanol, working together as the Biofuels Coalition. The petitioners argued that the small refinery exemptions were granted in direct contradiction to the statutory text and purpose of the RFS and challenged three waivers the EPA issued to refineries owned by HollyFrontier Corp. and CVR Energy Inc.’s Wynnewood Refining Co. The case is HollyFrontier Cheyenne Refining, LLC v....

by Jim Lane Wandering the halls at the BIO World Congress and later to be seen again at ABLC NEXT this November, we ran across one of the most interesting technologies relating to ethanol production and markets we have seen in a month of Sundays, perhaps two months’ worth. The problem First, let’s revisit the problem. There’s simply too much ethanol being produced for the markets to absorb, given the Trump Administration’s massive cutbacks in US ethanol targets —In the resulting massively oversupplied market, the inevitable has happened, ethanol producers, growers and the Midwestern economies are being crushed. And they thought they...

This Post was updated on 8/16/21. Ethanol stocks are publicly traded companies whose business involves producing ethanol alcohol (C2H5OH) made from biomass for use as a fuel in gasoline blends. Common feedstocks include corn and sugar cane.  Ethanol is the most widely produced and used biofuel, and all ethanol stocks are also biofuel stocks. Aemetis, Inc. (AMTX) Andersons Inc (ANDE) Archer Daniels Midland (ADM) Bluefire Renewables (BFRE) Cosan Ltd (CZZ) Green Plains Partners LP (GPP) Green Plains Renewable Energy (GPRE) MGP Ingredients (MGPI) Pacific Ethanol (PEIX) Raízen S.A. (RAIZ4.SA) REX American Resources Corp. (REX) SunOpta (STKL) If you know of any ethanol stock that is not listed here and should be, please let us know...

Prelude to a spin-off? by Jim Lane The Archer Daniels Midland Company (ADM) is breaking news of breaking off their ethanol unit…and a tumbling 40% decline in profit. In Chicago, Archer Daniels Midland Company reported their financial results for the quarter ended March 31, 2019, but most interesting to us, they are looking at separating their ethanol business with the option of spinning it off completely. They are also taking other actions to restructure and deal with challenges they say include weather issues and trade pressures. ADM announced a “series of measures to continue to underpin long-term-value creation” which included: “First, to meet growing customer...

by Jim Lane Three big product announcements just in… DSM (e) breaks through on yield, efficiency with new yeast, enzyme offerings for corn fiber conversion. Novozymes (Copenhagen:NZYM-B; OTC:NVZMY) launches breakthrough techs “Fortiva” and “Innova Force”. DuPont (DD) extends with corn oil extraction tech. In Indiana, DSM leads the news out of the Fuel Ethanol Workshops with their latest yeast and enzyme offerings, eBOOST GT and eBREAK 1000F. Up to 60 percent GA reduction We’ve seen the eBOOST brand over the past year — so here’s a significant cost savings opportunity in the form of a line extension. eBOOST GT, which has been tested and qualified at commercial...