The global promotion of carbon reduction, vegetable oil, animal oil, and even cooking waste oil, can be mixed with traditional fuels to make renewable fuels, reduce carbon emissions, and form “fluid gold” (liquid gold). The three winners named by foreign media are Calumet Specialty Products Partners, Darling Ingredients, and Neste.
Barron’s reported on the 3rd that the International Energy Agency (IEA) estimated that to achieve the goal of net zero carbon emissions by 2050, the production of biomass fuels must increase threefold in 2030. In 2012, Calumet acquired the waterfall plant in Great Falls, Montana, USA. CEO Stephen Mawer said: “Due to the pure oil movement, (discovered) Great Falls is one of the most suitable locations in North America for the conversion of renewable oil.”
Mawer pointed out that the plant is surrounded by camelina, and the price of this crop is still low, unlike soybeans and other raw materials for renewable diesel, whose prices have been raised to high prices. Moreover, the plant is connected to the railway, which can quickly send diesel to high-reporting markets such as the West of the United States and Canada. Cowen analyst Jason Gabelman gave Calumet a “buy” rating, etc., with a target price of $23.
Last Friday (3rd), Calumet fell 7.33% to close at $14.17. So far this year, the company’s shares have surged 352.72%.
Darling is one of the leading producers of recycled petroleum in the United States. The company has set up a joint venture with energy giant Valero Energy to make diesel from recycled biomass, cooking waste oil, and inedible corn oil at a plant in Louisiana. Production at the plant is expected to increase next year and a new plant in Texas in 2023 will allow Darling to overtake the U.S. leader in renewable diesel, which can produce 1.2 billion gallons a year. Darling CEO Randall Stuewe said live that they turned unpopular products into liquid gold.
The Finnish company Neste specializes in the production of renewable fuels at its factory in Singapore. Recently, it has entered the field of renewable aviation fuels. Although the scale model of this industry is small, it may be one of the fastest growing areas in the future. Neste products are used in more than 20 airports around the world.
On the 3rd, Darling fell 2.69% to close at $64.70; the increase this year was 12.17%. Neste US ADR fell 1.10% to close at $23.24, down 35.51% this year.
For detailed reports, please see: https://technews.tw/2021/12/06/calumet-liquid-gold/