A recent article by Seeking
Alpha contributor Fusion reviews the use and potential of biodiesel, an engine
fuel produced from vegetable oils and animal fats that can reduce the
consumption of diesel and its toxic emissions. In this review, Fusion lines up three
publicly traded biodiesel companies for comparison and market potential:
• Renewable Energy Group (REGI)
• Future Fuel (FF)
• Methes Energies International (MEIL)
To read the full article
visit http://seekingalpha.com/article/1937041
Each of the companies have
biodiesel products registered with the Environmental Protection Agency for
importing in the U.S. As Fusion points out, however, Methes differs from its
industry counterparts by also providing biodiesel technology to its clients.
Fusion writes: “Methes
Energies may be small compared to Renewable Energy Group in installed capacity
or sales of biodiesel, but unlike other players, Methes provides biodiesel
technology in addition to producing biodiesel. Methes Energies offers a wide
range of products in biodiesel, including biodiesel equipment, feedstock to
biodiesel producers, and biodiesel itself. Although most of the revenue is
derived from selling biodiesel, having multiple revenue streams is expected to
help grow the company’s top line even with any future risk related to
biodiesel.”
Methes products include two
fully automated biodiesel processors: the Denami 600 and Denami 3000. The
company also provides equipment buyers with support such as maintenance and a
lifetime warranty on the equipment, in exchange for a royalty fee based on the
client’s biodiesel production. Methes also reports increased interest from
ethanol producers for using Denami processors to convert corn oil into
biodiesel.
After comparing various
other aspects of all three companies, the article concludes that Methes is
strongly positioned to achieve its fair share of the market.
In conclusion the author
writes that, “Methes Energy is positioned to post record top-line growth next
fiscal year. As per the company’s projection, it believes its total revenue
will increase to $55 million next year. This was based on its November
presentation, before the OTC Technologies acquisition, so these estimates will
likely change, and the actual figure will be much bigger as sales from the
newly acquired technology will bring additional revenue to the company: for
example, the ethanol market is much larger than that for biodiesel. ….
Therefore, it is a good investment opportunity, and looking at its growth
initiatives, Methes Energies could generate good returns for shareholders next
year.”
For more information visit
www.methes.com
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