Jan. 2 (Bloomberg) — 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.
To contact the reporter on this story:
Andrew Herndon in San Francisco at
aherndon2@bloomberg.net
To contact the editor responsible for this story:
Will Wade at
wwade4@bloomberg.net
