Biofuels Quick Takes: Solazyme, KiOR, E15, Farm Bill

Solazyme Q1 results. Cowen & Co’s Rob Stone writes: “We expect in-line Q1:13 results…stock performance likely hinges on status of construction at Lestrem and Moema, ramp timing at Clinton, and possibly new oils and new customers. We model positive cash EPS in 2014, and see 70% upside relative to the market in a year. Reiterate Outperform.

KiOR Q1 results. Cowen & Co’s Rob Stone writes: We expect Q1 results (5/9 BMO) slightly below St…first revenue from Columbus is an important milestone. Progress since the quarter is likely more important, though a complete review of operational metrics may be deferred to an analyst day. We see 70%+ upside relative to the market in a year….Detailed Operations Update May Come Later. Since KIOR expects to generate 60-90 days of operating data at Columbus before raising funds for the next plant (Natchez), we believe a detailed update is likely to be presented at an analyst day, perhaps in June or July.

8 new E15 pumps in Wisconsin. The pumps are located at the SmartStation, 1290 Business Highway 151, Platteville, WI, a wholly owned subsidiary of Badger State Ethanol. E15 is a new high-octane fuel made up of 15% ethanol and 85% gasoline. In January 2011, the EPA approved E15 for use in model year 2001 and newer cars, light-duty trucks, SUVs, and flex-fuel vehicles.

Farm Bill. The Agriculture Energy Coalition expressed support for legislation introduced by Sen. Al Franken (D-Minn.) to reauthorize Farm Bill Energy Title programs and provide robust mandatory funding. The Coalition also thanked Sens. Tom Harkin (D-Iowa), Sherrod Brown (D-Ohio), Richard Durbin (D-Ill.), Maria Cantwell (D-Wash.), Tim Johnson (D-S.D.), William Cowan (D-Mass.), Mazie Hirono (D-Hawaii), Tammy Baldwin (D-Wisc.) and other original co-sponsors of the legislation, which would provide more than $1 billion in mandatory funding for renewable energy programs.