Renewable Energy Group Rises After Biofuel Credits ExtendedAndrew Herndon
Renewable Energy Group Inc., the biggest U.S. biodiesel maker, rose the most in three months after Congress approved legislation extending a tax credit for the industry.
The company, based in Ames, Iowa, surged 9 percent to $6.39 at the close in New York, the biggest gain since Sept. 17.
The U.S. House passed a fiscal package yesterday that extends for one year several renewable-energy tax breaks. The measure, already approved by the Senate, includes a $1-a-gallon biodiesel blenders tax credit that expired at the end of 2011.
“This should assist in the ability to hit and exceed the 2013 targets” that the U.S. Environmental Protection Agency set for biodiesel blending, Michael McAdams, president of the Advanced Biofuels Association, said in an e-mail today. The EPA in September raised to 1.28 billion gallons the amount of biodiesel that refiners must blend with their products in 2013.
The legislation approved yesterday also extends a $1.01-a-gallon credit for producers of so-called cellulosic biofuel, which is made from non-food organic materials. The measure adds algae-based fuels to the definition of cellulosic biofuel, McAdams said.
The legislation will lead to expanded production and more jobs, according to the National Biodiesel Board, a Washington-based trade association.
Kior Inc., a producer of transportation fuels from wood chips, rose 3.7 percent to $6.65. Solazyme Inc., a maker of oils from algae, climbed 5.9 percent to $8.32, the biggest increase since Dec. 11.