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Tech investing has always been a lucrative yet volatile field, but it remains a strong bet with the world advancing at a breakneck pace. Clean energy, specifically biofuel, is poised to be the next popular niche in technology investment.

Biodiesel, solar, natural gas, and even fuel cells made of hydrogen have all risen recently as more governments and corporations are shifting towards policies that support clean and renewable energy.

If you are interested in buying biofuel stocks, you must research the biofuel developers before choosing which ones to invest in.

The political climate makes it a perfect time to invest in biofuel stocks. The government has been backing public biofuel stocks, and top biofuel companies are finally seeing sustainable shareholder returns and consistent profits. Of course, timing is everything with investments, and successful biofuel companies have finally reached the commercially viable threshold.

Also, with biofuel developers constantly creating new technology and manufacturing plants improving their output, there has never been a better time to invest in biofuel stocks. We have compiled a list of the best biofuel stocks for your buck this year.

Our Selection Criteria

Several successful biofuels companies offer public biofuels stocks for investment. We have looked at 30 top biofuel companies and whittled down the list to give you the best performers. Each biofuel stock on our list must have seen positive gains for at least the last 12 months to make our list.

We only included companies with a 50% or more interest in biofuels instead of green or clean energy. When considering biofuel stocks to invest in, remember that investing of any form carries a certain amount of risk, which holds for this industry. Our best biofuels stocks will have generated high returns for 2021, and the number was calculated based on their 18-month earnings report.

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Our Top Picks Of The Best Biofuels Stocks This Year

Amyris – AMRS

This stock has been around for over two decades, but with a higher emphasis on reducing the cost of air travel and jet fuel, it has been growing by leaps and bounds. In recent news, they have started working with Chevron to develop alternative fuel sources to help reduce the need for fossil fuels globally.

They are also a defining presence in the health & beauty sector, one of the biggest consumers of fuel-based resources worldwide.

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Archer-Daniels-Midland Company – ADM

Archer-Daniels-Midland Company has been producing advanced biofuels for years. They offer an eco-friendly, non-toxic alternative the fossil fuels that is completely sustainable. One of their top sellers is a diesel substitute made from vegetable oils sourced from several countries.

It helps to reduce greenhouse gas emissions which is a hot topic currently, which is one of the reasons this stock has been performing so well.

ADM’s products are also fully compliant with North American, South American, EU, and US quality standards, making it an ideal stock for local and international portfolios.

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Gevo – GEVO

Gevo’s biofuel products are created mainly to replace infrastructure and engines dependent on traditional fossil fuels.

They can outperform older fuels exponentially and also reduce emissions at the same time. ESG investing has become rather fashionable, but GEVO has been in it for the long haul.

The stock shot up earlier this year when green investing was trending toward a high peak. It performed much better than other stocks in the same field thanks to the low starting prices, which have now settled but remain affordable even for novice investors.

If you are looking to enter the clean-energy market, Gevo is a great option if you want to support sustainability.

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Green Plains – GPRE

Green Plains Inc, GPRE, is a renewable energy and biofuel processing and distribution company. Their diverse portfolio offers various services such as cattle feedlot operations, ethanol production, commodity marketing, grain handling and storage, commodity distribution, and corn oil production.

This US-based company has been working on low-emissions and sustainable biofuels since 2004 and has shown steady and sustainable growth.

They have recently announced they will work with Fagen, Inc. to install a new biorefining platform, making it one of the global companies focusing on value-added and sustainable products. Regarding investments, this is one of the safer options that will provide moderate but long-lasting returns on every dollar invested.

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Renewable Energy Group – REGI

Renewable Energy Group, Inc., REGI is an American company dedicated to producing renewable chemicals and biofuels. They also sell renewable products through their Biomass-Based Diesel company in Ames, Iowa.

The company was founded in 1996 and has persevered through several technology advancements, setbacks, and regulation changes.

Previously the stock was offset by government programs and funding like most clean energy stocks. Still, as the trend towards clean energy has moved toward the forefront in recent years, they have boasted positive gains.

There is a risk of loss like any investment, but with this biofuels stock and its steady track record, it’s as close as you can get to a sure thing in this field.

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Codexis – CDXS

Gasoline Station

Codexis, Inc., CDXS is one of the top producers of biofuel components in the US. They specifically develop biocatalysts used in the fine chemicals and pharmaceutical markets worldwide.

This sustainable and eco-friendly product has made it easier and more cost-effective for companies to develop drugs and other essential chemicals without creating a drain on the earth’s resources.

The biocatalyst panels and kits from Codex help companies by giving them an accurate tool to screen for and create viable enzymatic manufacturing processes for products and drugs they want to market.

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Darling Ingredients – DAR

Darling Ingredients is a publicly traded company that focuses on developing biofuels and other ingredients from sustainable sources.

They create products from both inedible and edible bio-nutrients. The sustainable items they produce are turned into products for the technical, pharmaceutical, and fertilizer industries.

They also create sustainable feed, pet food, human consumables, and bioenergy. Unlike other companies, DAR has been around since 1882.

Their focus has always been on sustainable production, one reason their stock is a solid investment. In recent weeks the stock has moved up to the top percentile among all biofuel stocks and is set to continue the trend for at least the next several market cycles.

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Green Plains Partners LP – GPP

Green Plains Partners LP, GPP, is a company focused on ethanol. As a biofuel, this is one of the first green sources of energy to hit the market and remains a widely used renewable resource that has helped reduce the world has dependence on fossil fuels.

The company develops and acquires ethanol and operating terminals, transport assets, and storage tanks across the country. Founded in 2007, this sustainable company has grown steadily over the last several years.

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MGP Ingredients – MGPI

MGP Ingredients MGPI is one of the most well-known producers and suppliers of specialty wheat proteins, starches, and premium distilled spirits. They were founded in 1941 and are based in the US.

In addition to offering distilled spirits, this company also supplies biofuels and biofuel additives. The company went public in 1990, making it one of the older green stocks on our list. They have a higher debt rate than most green stocks but also offer a steady rate of growth which is essential for long-term investments.

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Different Types of Biofuels Companies

Gas Station | Biofuel Stocks

There are many green energy and clean energy companies out there, but not all of them are actually public biofuel companies. For investing, it is important to understand what types of biofuel companies are out there. Biofuels are made of biomass that is converted into liquid fuels directly.

The most common type of biofuels is biodiesel and ethanol. Renewable hydrocarbon fuels are made from biomass, but they are less common and still not as readily available as other types.

Bio-alcohol, Propanol, Butanol, Green Diesel, cooking oils, Biogas, Biohydrogen, Dimethylfuran, and Cellulosic ethanol are also all biofuels that biofuels developers use to help move clean, renewable energy forward.

There are a few private and public biofuel companies; while most offer stock options, some are privately held. Some companies are dedicated to biofuel manufacturing, and those are primarily biofuel developers. There are also biofuel distributors and research companies. Those first-gen and second-gen biofuels companies can further separate the two main categories.

First-generation companies are those that convert edible food parts into biomass. While these companies were innovative, they have mostly given way to second-generation biofuel companies that use alternative feedstock that doesn’t threaten the human food supply.

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Who is the top biodiesel producer?

The top biodiesel producer is the company or organization that produces the most biodiesel fuel. The top biodiesel producer is the United States, followed by Brazil and Germany. Biodiesel is a renewable fuel made from vegetable oils, animal fats, or recycled cooking grease, and is commonly used as a substitute for traditional diesel fuel.

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Are Biofuel Stocks Worth The Risks?

Investment Stock Graph

Any investment comes with a certain number of risks. However, biofuels are currently at a crossroads in the current investment market. Over the last decade, the production of this renewable energy source has grown more than six-fold.

That said, they still account for less than 5% of all the fuel on the roads today. There is still a higher production cost when it comes to producing biofuels than using existing fossil fuels; however, the environmental effects are clear.

The dominant biofuel on the market is corn-based ethanol, but with it comes the ESG issue of generating more edible crops solely for fuel stock. Companies that offer corn-based ethanol are doing well; however, producing next-generation biofuels is doing much better.

Waste-based fuels, cellulosic ethanol, and other forms of biofuel are being developed every day. Most governments hoped for a quicker scale-up of biofuels and biofuel products. In some places, production has failed to meet projections for several years, resulting in a scaling back of ESG mandates.

Subsidies have long been the main driving force for companies’ advancement. Still, with the budget tight, investment is quickly becoming the main driver in sustainable fuel development.

While risks are involved, and growth may be slow, investing in biofuel is good for the planet and your long-term portfolio gains.

FAQs

Is it worth investing in biofuel?

Biofuel is a fuel derived from renewable biomass sources such as plants, vegetable oils, and animal fats. Investing in biofuel can benefit both the environment and the economy, reducing greenhouse gas emissions and creating new job opportunities in the renewable energy sector.

Like any investment, it is important to conduct thorough research and consider factors such as market demand, government policies, and potential risks before deciding.

Does biodiesel have a future?

Biodiesel is a renewable fuel source made from vegetable oils or animal fats. It can potentially reduce greenhouse gas emissions and dependence on fossil fuels.

The future of biodiesel is promising as governments and industries worldwide are increasingly investing in renewable energy sources and reducing their carbon footprints.

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