The global biofuels market was valued at US$141.56 billion in 2020 and is anticipated to reach US$245.48 billion in 2027. Despite previous dips, the outlook for the biofuels industry and US biofuel stocks is positive.
The driving forces behind rising demand for biofuels include a growing need for alternatives to gasoline in road transportation, and government mandates to blend automotive fuels with biofuels.
In 2020, the US was ranked as the largest biofuels-producing country. In mid-2021, the country’s Department of Energy announced close to US$34 million in funding for 11 research and development projects aimed at improving and producing biofuels, biopower and bioproducts.
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What’s more, there are ongoing cleantech innovations that could move the needle forward, such as drop-in biofuels, the use of enzymes to boost bioprocessing and the use of agricultural waste products as fuel.
With the biofuels opportunity in mind, the Investing News Network has used TradingView’s stock screener to compile a list of US biofuel stocks with market caps under US$2 billion. The companies are listed in alphabetical order, and all figures were current as of market close on August 17, 2021.
1. Aemetis (NASDAQ:AMTX)
Market cap: US$280.14 million; current share price: US$8.84
First on this US biofuel stocks list is Aemetis, an advanced renewable fuels and biochemicals company. It produces advanced fuels and chemicals by acquiring, developing and commercializing technologies that can 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.
2. Alto Ingredients (NASDAQ:ALTO)
Market cap: US$348.75 million; current share price: US$4.76
With headquarters in Sacramento, California, Alto Ingredients is a producer of industrial and beverage alcohols, premium feed and food products, as well as low-carbon renewable fuel in the form of ethanol.
Alto has seven distilleries across the states of Illinois, Idaho, Oregon and California. These facilities are capable of producing ethanol co-products, 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.
3. FutureFuel (NASDAQ:FF)
Market cap: US$354.04 million; current share price: US$8.09
FutureFuel is a developer and producer of diversified chemical products, specialty organic chemicals, premium biodiesel and other biofuels, such as ethanol and biomass solids.
FutureFuel launched its biofuels product platform in 2005 and has a current biodiesel production capacity of 59 million gallons per year. It also recently declared a special cash dividend for its investors.
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4. Gevo (NASDAQ:GEVO)
Market cap: US$1.03 billion; current share price: US$5.24
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 isobutanol from a 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 converts alcohols into products that range from renewable jet fuel to octane and even ingredients for plastics.
5. Green Plains (NASDAQ:GPRE)
Market cap: US$1.91 billion; current share price: US$35.60
Next on this US biofuel stocks list is Green Plains, a company founded in 2004 and based in Nebraska.
Green Plains is an ethanol producer with a production capacity of 1.1 billion gallons per year, made possible with its 11 plants located around the US. In addition to its ethanol production, Green Plains expects that at capacity it will be able to produce roughly 3.1 million tons of distiller grains. Because of this, Green Plains labels itself North America’s second largest consolidated owner of ethanol plants.
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.
6. Green Plains Partners (NASDAQ:GPP)
Market cap: US$298.01 million; current share price: US$12.83
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.
7. REX American Resources (NYSE:REX)
Market cap: US$462.88 million; current share price: US$77.25
Closing out our US biofuel stocks list is REX American Resources, a company that has interests in six ethanol production facilities. Through those facilities, 617 million gallons of ethanol were shipped over the 12 month period ended on April 30, 2021.
The company’s investment interests include One Earth Energy, NuGen Energy and Big River Resources.
This is an updated version of an article originally published by the Investing News Network in 2017.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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