Renewable Energy Group Inc – Energy Stocks Today
Clean energy is an important trend that investors should be on top of. The transition from conventional energy sources to renewable and cleaner sources is a structural one. It is expected to play out over the next few years, if not decades. Therefore, any promising business in the area of clean energy is worth taking a closer look at. Oil and gas refining stocks are the wealth creators of yesteryear. Now, such refineries either have to adapt to clean energy or pivot their business models. Some may argue that the moment when traditional crude refining exists is a long way away. But, companies are already beginning to take action. Then there are companies like Renewable Energy Group. It specializes in biodiesel and operates 12 biorefineries. Biodiesel is a fuel manufactured using vegetable oils, recycled grease, and animal fat. Note that biodiesel is not the same as green diesel.
More About Renewable Energy Group
Renewable Energy Group was initially the biodiesel segment of West Central Cooperative. It eventually became its own entity and acquired a couple of other businesses to build up its refining capacity. Today, Renewable Energy Group is the largest supplier of advanced biofuels in North America. Biodiesel can help reduce carbon emissions significantly because a lot of the emissions are caused by the transportation sector. It is estimated that biodiesel lifecycle emissions are around 86% lower than the greenhouse gas emissions caused by petroleum diesel. If you want to invest in energy stocks today and align yourself to the sustainability trend, then Renewable Energy Group presents an interesting opportunity. If biodiesel gets adopted by fleet vehicles and urban transport institutions, then the scale at which emissions can be reduced may be immense.
Most energy stocks have been on an uptrend over the past month or two. Oil prices are also at multi-year highs. The rise in oil prices and commodity prices has stoked fears of higher inflation. In order to protect capital from inflation, investors may have to put their money to work. Investing in promising companies in the energy sector can be one option.