Biofuels Short Takes: BioAmber, CRP, Farm Bill, EU De-Carb

May 15, 2013 |

BioAmber IPO. In Minnesota, BioAmber announced the closing of its initial public offering of million units consisting of one share of common stock and one warrant to purchase half of one share of common stock at $10.00 per unit. Each warrant will be exercisable at an exercise price of $11.00 per whole share of common stock. The units are listed on the New York Stock Exchange (“NYSE”) under the symbol “BIOA.U” until June 10, when they will trade separately on NYSE as “BIOA” and “BIOA.WS”. BioAmber shares have dropped to $8.00 in the first days of NYSE trading.

Farm Bill. The US Senate Agriculture Committee passed a Farm Bill yesterday including mandatory funding for Energy Title programs and eligibility for renewable chemicals in Farm Bill reauthorization legislation, which passed today on a 15-5 vote in the committee. National Corn Growers Association President Pam Johnson said:  “While we understand this is the first step in a very long process, we applaud the Senate Ag Committee for completing their bill and are encouraged that the House Agriculture Committee will swiftly follow suit. We look forward to continued work with members and staff on this important piece of legislation and urge Congress to pass a farm bill as soon as possible this year.”

Conservation Reserve Program. The U.S. Department of Agriculture (USDA) will conduct a four-week Conservation Reserve Program (CRP) general sign-up beginning May 20 and ending on June 14. USDA provides participants with rental payments and cost-share assistance. Contract duration is between 10 and 15 years. Currently, 27 million acres are enrolled in CRP through 700,000 contracts on 390,000 farms throughout the U.S., with enrollment in 49 states and Puerto Rico. Contracts on an estimated 3.3 million acres will expire on Sept. 30, 2013.

EU Decarbonization. In Brussels, the Leaders of Sustainable Biofuels met the European Parliament regarding the European Commission revision of the Renewable Energy Directive – RED. “Second Generation Advanced Biofuel technologies are ready to compete with conventional biofuels, with companies keen to invest in commercial projects given appropriate conditions”, the Leaders said. Such conditions , the group said, include a minimum two per cent mandate for Advanced Biofuels should be set as a sub-target of the RED, with a well defined and growing pathway to 2025-2030, aligning policies with market realities, securing long term perspectives and mobilising resources into commercial activities. The LSB is a group composed by the Chief Executive Officers of Chemtex, British Airways, BTG, Chemrec, Clariant, Dong Energy and UPM.

 

Category: Fuels

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