In this article, we will take a look at the 5 best algae and biofuel stocks to buy. To see more such companies, go directly to 12 Best Algae and Biofuel Stocks To Buy.
5. Gevo, Inc. (NASDAQ:GEVO)
Number of Hedge Fund Holders: 15
Gevo, Inc. (NASDAQ:GEVO) ranks 5th in our list of the best algae and biofuel stocks to buy now. Gevo, Inc. (NASDAQ:GEVO) makes bio-based alternatives to traditional energy products. Gevo, Inc. (NASDAQ:GEVO)’s processes ensure to give high-protein animal feed the lowest carbon levels in its life-cycle inventory (LCI). Gevo, Inc. (NASDAQ:GEVO) also makes high-protein animal feed and a full range of energy-dense liquids. Analysts believe there have been some positive developments in Gevo, Inc. (NASDAQ:GEVO) which points to solid growth in 2023. Gevo, Inc. (NASDAQ:GEVO)’s renewable gas plant in northwest Iowa is now producing biogas. The project consists of three dairy farms with over 20,000 milking cows. In the summer of 2021, Gevo, Inc. (NASDAQ:GEVO) made headlines after it signed an agreement with American Airlines (AAL) to supply 100 million gallons of sustainable aviation fuel (or SAF) for five years.
Hedge funds are piling into Gevo, Inc. (NASDAQ:GEVO). As of the end of the third quarter, 15 hedge funds had stakes in Gevo, Inc. (NASDAQ:GEVO), compared to just 4 funds in the previous quarter. This shows a sharp increase in hedge fund sentiment for Gevo, Inc. (NASDAQ:GEVO).
4. Green Plains Inc. (NASDAQ:GPRE)
Number of Hedge Fund Holders: 21
Green Plains Inc. (NASDAQ:GPRE) is a Nebraska-based company that is among the biggest ethanol fuel producers in North America. Green Plains Inc. (NASDAQ:GPRE) calls itself a biorefining company that processes crops into low carbon, sustainable ingredients through fermentation and patented ag-technologies. It is also working in the algae domain. Green Plains Inc. (NASDAQ:GPRE) has an innovation center at York which features a pilot fermentation train used to develop algae and yeast fermentation processes.
A total of 21 hedge funds tracked by Insider Monkey reported having stakes in Green Plains Inc. (NASDAQ:GPRE), compared to 22 funds in the previous quarter. Among the biggest stakeholders of Green Plains Inc. (NASDAQ:GPRE) are Frederick Disanto’s Ancora Advisors ($120 million stake) and David Rosen’s Rubric Capital Management ($30 million stake).
3. BP p.l.c. (NYSE:BP)
Number of Hedge Fund Holders: 25
One of the biggest energy companies in the world, BP p.l.c. (NYSE:BP) is invested heavily to position itself in the biofuel industry. Last year, BP p.l.c. (NYSE:BP) bought a 30% stake in Green Biofuels Ltd., which is the UK’s largest provider of hydrogenated vegetable oil (HVO). BP p.l.c. (NYSE:BP)’s website says that BP p.l.c. (NYSE:BP) in 2017 produced 776 million liters of ethanol equivalent from sugarcane in Brazil alone, which was enough to offset emissions of 260,000 European cars.
In 2019, BP p.l.c. (NYSE:BP) signed a partnership with Bunge to form biofuels plant in Brazil.
2. Archer-Daniels-Midland Company (NYSE:ADM)
Number of Hedge Fund Holders: 37
Archer-Daniels-Midland Company (NYSE:ADM) is one of the biggest food processing companies in the world. Archer-Daniels-Midland Company (NYSE:ADM) is also invested heavily in the biofuels space. Archer-Daniels-Midland Company (NYSE:ADM) produces biodiesel through a process called transesterification, in which vegetable oils are heated with alcohol in the presence of a catalyst to yield mono-alkyl esters (biodiesel) and glycerin. Archer-Daniels-Midland Company (NYSE:ADM) produces biodiesel from vegetable oil in EU, Brazil, Canada and in the U.S. Archer-Daniels-Midland Company (NYSE:ADM) is also operating in the ethanol segment of Archer-Daniels-Midland Company (NYSE:ADM).
Archer-Daniels-Midland Company (NYSE:ADM) produces ethanol from corn feedstock.
As of the end of the third quarter, 37 hedge funds tracked by Insider Monkey reported having stakes in Archer-Daniels-Midland Company (NYSE:ADM). The total value of these stakes was about $599 million.
1. Valero Energy Partners LP (NYSE:VLP)
Number of Hedge Fund Holders: 47
One of the biggest energy companies in the US, Valero Energy Partners LP (NYSE:VLP) is also investing heavily in the biofuels market. Valero Energy Partners LP (NYSE:VLP)’s Diamond Green Diesel joint venture is the world’s second-largest producer of sustainable renewable diesel. Valero Energy Partners LP (NYSE:VLP) uses recycled animal fats, used cooking oil and distiller’s corn oil to produce low carbon fuel. Valero Energy Partners LP (NYSE:VLP) has 12 plants that produce corn ethanol, which is a clean, high-octane renewable fuel.
As of the end of the third quarter, 47 hedge funds tracked by Insider Monkey reported having stakes in Valero Energy Partners LP (NYSE:VLP), compared to 43 funds in the previous quarter.
You can also take a peek at Top Stocks in Each Sector and Dow 30 Stocks List 2022.
