Enerkem’s $125M IPO: The 10-Minute Version
Jim Lane The second technology focused on unlocking value in municipal solid waste comes to the public markets. Here’s our 10-minute version of the filing, with a translation of the risks into English. In Canada, Enerkem has filed an F-1 registration statement for a proposed $125 million initial public offering. The number of shares to be offered in the proposed offering and the price range for the offering have not yet been determined. The lead book-running managers for the offering are Goldman Sachs, Credit Suisse and BMO Capital Markets. The company is currently ranked #7...
They’ll Put the Cellulose in Cellulosic Ethanol
One of the keys to staying ahead of the game in money management is lateral thinking. I start with the trend, and then try to think of industries or companies that might benefit, but are not on everyone else's radar. With Peak Oil-driven demand for biofuels, regular readers know that I consider the people who produce the feedstock (farmers, and industries whose waste can fairly easily be converted into biofuel) to be the most certain winners. One direction this chain of logic has taken me is to forestry companies. I'm far from a forestry analyst, so I decided to...
ADM raises capacity of N. Dakota biodiesel plant
Archer-Daniels-Midland Co. (ADM) s increasing the capacity of a biodiesel plant under construction in North Dakota to 85 million gallons a year, a company spokesman said on Wednesday. ADM originally announced the plant in Velva would produce 50 million gallons of biodiesel a year using canola oil. ADM decided to increase capacity to take advantage of economies of scale, said Greg Webb, vice president of public affairs.
Earnings Round-Up: ADM, Green Plains, Syngenta
Jim Lane Green Plains In Nebraska, Green Plains (GPRE) announced net income for the quarter was $42.2 million compared to net income of $25.5 million for the same period in 2013. Revenues were $829.9 million for the fourth quarter of 2014 compared to $712.9 million for the same period in 2013. Net income for the full year was $159.5 million compared to $43.4 million for the same period in 2013. Revenues were $3.2 billion for the full year of 2014 compared to $3.0 billion for the same period in 2013. Fourth quarter 2014 EBITDA was $90.7 million compared to...
Ethanol Stocks Reviewed On Seeking Alpha
With oil and gasoline prices rising ever higher, investors are shifting attention to alternative energy stocks as a promising high-growth sector. A particular area of interest is ethanol stocks and forthcoming ethanol IPOs. Here are companies recently reviewed on Seeking Alpha Archers Daniels Midland Company (NYSE: ADM) Pacific Ethanol (PEIX) Xethanol (XTHN) VeraSun (VSE) MGP Ingredients (MGPI) Aventine Renewable Energy (AVR) Green Plains Renewable Energy (GPRE) Andersons Inc. (Nasdaq: ANDE) Veridium Corporation (VRDM)
Sketches of DuPont’s Cellulosic Ethanol Project in Nevada, Iowa
Jim Lane It towers above the surrounding Iowa countryside like the Launch Assembly Building lords it over Cape Canaveral it’s the new DuPont (DD) cellulosic ethanol project, on the outskirts of the town of Nevada. Functional yet inspiring, imposing yet accessible when it opens before year end 2014 it is sure to be a monumental addition to the cellulosic biofuels landscape. Last week we wrote: “There are strategic reasons to develop this new industrial bioscience business in central Iowa not just the “we’d love to have you, wages are low, cost of...
Clearfish Research Profiles Pacific Ethanol (PEIX)
Pacific Ethanol (PEIX) is building a refinery in California for corn based ethanol production in the heart of the California agricultural and dairy land (the biggest agricultural and dairy producer in the country). The refinery is supposed to come on line in Q4 2006, and there are plans for 4 more subsequent refineries. As there is unlikely to be any increased ethanol demand in California (see background above), the supply capacity they are bringing online must be able to disrupt the current out-of-state supply and/or undercut the current prices. They are one of the biggest distributors of that alternate...
Butamax and Gevo: Bio’s Montagues and Capulets get it on, and on, and on
The 2-Minute Guide to Butamax vs Gevo, and vice-versa
Tax On E85 Renewable Fuel Soars
Jim Lane The US passed a dubious and historic milestone this week. The tax rate on E85 renewable fuels now exceeds 100% in some formulations. By comparison, the tax rate on E10 renewable fuel is running at an estimated 41% and the tax rate on straight gasoline is running at an estimated 35%. As Shakespeare observed in Measure by Measure, “some rise by sin, and some by virtue fall”. Now, the idea of a carbon tax is that governments are supposed to collect more tax against high-carbon fuels. Yet, policy in practice works the other way. The less carbon...
