BIOFUELS CAN BEAT CHEAP OIL

Biofuel Developers like Neste Oil, Diamond Green Can Thrive Despite Cheap Oil; Oil prices' precipitous drop could undermine alternative fuel developers, but Lux Research evaluated 25 companies to see which can overcome the challenge from cheap oil

May 13, 2015 (Lux Research) “While alternative fuels like biofuels had obvious appeal when oil prices were well over $100 a barrel, the plummet in oil prices to $50 levels can threaten the cost-competitiveness of alternative fuels. However, many developers have planned for low oil prices and some will still be able to achieve cost reductions needed to thrive, according to [a Lux Research analysis of 400 alternative fuel producers and a closer study of 25 companies from seven technology families, four feedstock types and three stages of development]…Neste Oil, Diamond Green are benefiting from cost cuts…Solena Biofuels and Joule Unlimited were among the laggards…Amid low oil prices, high-profile companies such as Solazyme, [Sapphire Energy,] Amyris, and Gevo have shifted decisively toward specialty chemicals and nutraceuticals…Oil majors [like Total] remain a pillar of support…” click here for more

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