Best biofuel companies to buy in 2022


Best biofuel companies to buy in 2022: Aemetis, Gevo and Green Plains.

Biofuels are alternative fuels derived from either starch-based feedstocks (eg, corn ethanol) or renewable feedstocks (eg, biomass-based diesel). In addition, another type of advanced biofuel is any fuel derived from cellulose, non-food renewable feedstocks (eg, cellulosic biofuel).

With the green transition underway, biofuel companies outperformed in 2021. Here are three biofuel companies to buy in 2022: Aemetis, Gevo and Green Plains.

Aemetis

Aemetis is an American company from Cupertino, California. It operates an ethanol plant in California, among other places, and develops efficient technologies to produce biofuels and biochemicals.

Earlier this month, the company announced a $ 1.1 billion sustainable aviation fuel deal with American Airlines. Nonetheless, Aemetis is still losing money, posting negative EPS over the past five quarters. But investors are bullish, at least judging by the development of the stock price – it’s up over 400% this year alone.

Analysts are also bullish on the share price. Of the five analysts covering the company, all have issued buy notes. Credit Suisse, for example, maintained its buy rating with a price target of $ 31.

Gévo

Gevo is headquartered in Englewood, Colorado, and operates as a renewable fuels company. It manufactures sustainable aviation fuel and ethanol, among others, and was founded in 2005.

The Gevo share price has risen more than 66% in the past twelve months, and investors have applauded the recent deal with Kolmar Americas. Under the deal, Gevo will supply Kolmar Americas with 45 million gallons of renewable hydrocarbons, the largest renewable fuels contract ever.

While the deal is good news for Gevo and its shareholders, the company has yet to make a profit. But analysts are bullish, given that the three following the share price have buy ratings. The biggest price target belongs to HC Wainwright & Co., which sees the stock at $ 18.

Green plains

Green Plains is headquartered in Omaha, Nebraska, and was founded in 2004. It produces and distributes ethanol and operates storage facilities, fuel terminals, and leased rail cars.

The company has yet to make a profit, but that hasn’t stopped investors from bidding for its stock price, which has risen more than 170% since the start of the year. Most likely, investors are focused on the expected rise in EPS, estimated at $ 4.80 by 2025.

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