January 2, 2013

Funding prospect for 2013?

With the dismal IPO and stock trends for renewable chemicals and biofuels last year, combined with biofuel/renewable energy regulatory uncertainties in the Western markets as well as continuous global economic/financial challenges -- will investors be invigorated in 2013 to part with their precious green bucks?

January seems to have a good start as the biodiesel industry gave a sigh of relief today when the US House of Representatives cleared a year-end fiscal package that reinstates the $1/gal biodiesel tax incentive through the end of 2013 and retroactive to January 1, 2012. The Renewable Fuels Association (RFA) also noted the extension of three key ethanol related tax credits with the passage of the fiscal package in Congress.

Meanwhile, Gevo said today that it has repurchase up to $15m of its common stock over a one-year period with existing cash and cash equivalents on hand. The company believes its stock price is currently undervalued and that the repurchase is an opportunity to enhance value for their stockholders. The move seemed to excite investors as their stock as of January 2 rose 18% to $1.82 after the market closed.

According to this Bloomberg article, industry analysts such as from Raymond James & Associates, Piper Jaffray approve the move stating that the company is sending a positive signal about their credibility after Gevo announced the cutback of their bio-isobutanol production in late September.

December also saw funding announcements from Amyris, P2 Science, Proterro, and Soffinova Green Seed Fund/Solvay.

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