7 Best Algae and Biofuel Stocks to Buy Now

4. Green Plains Inc. (NASDAQ:GPRE)

Number of Hedge Funds Holders: 29

Green Plains Inc. (NASDAQ:GPRE) produces low-carbon fuels and serves the market in three different segments: ethanol production, agribusiness, and partnerships. The company produces ethanol and renewable corn oil, and it also offers fuel storage and transportation services.

In July 2024, Green Plains Inc. (NASDAQ:GPRE) announced a joint venture with Tharaldson to implement the largest MSC system at Tharaldson’s biorefinery, producing high-quality protein with 40% less carbon compared to competing products. This increased Green Plains Inc.’s total annual production capacity to 430,000 tons.

The company reported a net loss of $24.4 million for the Q2 2024. This is a significant improvement from the previous quarter, where the company reported a loss of $51.4 million in Q1 2024, and from Q1 2023, where the loss was $52 million. The primary driver of this improved performance was the biofuel ethanol production segment, with the company selling 208.5 million gallons in the second quarter. The ethanol crush margin was $22.7 million in Q2 2024, compared to margins of $4.6 million in Q2 2023.

The company’s Interest expenses also declined this quarter due to lower working capital revolving balances. Green Plains Inc. (NASDAQ:GPRE) reported a strong financial position with $225.1 million in total cash and equivalents at the end of Q2 2024.

In June 2024, Green Plains Inc. announced that it has finalized a construction agreement and ordered key equipment to capture carbon at its Nebraska facilities. This facility will enable the capture of biogenic carbon dioxide associated with the production of 287 million gallons of ethanol. Additionally, the company announced that its first commercial clean sugar technology, with 40% less carbon footprint, has begun commissioning.

Given the company’s rapid improvement in financial results, analysts believe it will soon turn profitable. As a result, eight analysts have recommended an upside potential of 98% in the share price, and 29 hedge funds are bullish on the stock. This explains why the stock makes it to our list of the 7 best Algae and Biofuel Stocks to Buy Now.