Renewable Energy Group Inc., a green diesel maker, is exploring available options after receiving takeover interest, Bloomberg reports. The company is reportedly even considering sale.
Demand for renewable energy has been steadily growing in recent years as the need to decarbonise the energy sector becomes more urgent. Israel and Egypt are among the countries which have announced the intention to dramatically boost the proportion of renewables in their energy mix in the past year.
Renewable Energy Group is an Iowa-based company which turns feedstock into fuel at more than a dozen locations in the U.S. and Germany. But higher soybean costs have hurt the company’s biodiesel margins.
Now searching for extra funding, Renewable Energy Group is working with financial advisers, and it has held recent takeover talks with big oil and gas corporations.
If a takeover deal is struck, an agreement could be announced within the upcoming weeks. However, the company plans could change, and it might still decide to remain independent.
Renewable Energy describes itself as a pioneer in the renewables industry that has driven oil majors and refiners to convert their plants into biorefineries. Like many companies in the sector, it has benefited from biodiesel tax credits in the U.S.
Last year, Renewable Energy acquired a minority stake in Booster, a startup that delivers fuel directly to vehicles.
Renewable Energy’s share price fell 2.3 percent to $32.62 in New York, giving the company a market value of about $1.6 billion.