To paraphrase Mark Twain, reports of ethanol's death have been greatly exaggerated. Sure, VeraSun Energy
The growth factor is certainly there. VeraSun reported a 113% spike in quarterly sales, while revenue for the full year ramped over 52%. Sagging ethanol prices -- down 9% for the year on average -- were no help, but VeraSun’s capacity additions were ample. Upon consummation of the firm's merger with US BioEnergy
Size does indeed matter here. VeraSun has already demonstrated scale efficiencies, visible in various financial metrics. The firm's EBITDA margin for the year bested just about every conceivable comparable company, from Archer DanielsMidland
Another element of efficiency, to take a longer view, is crop yield. Gene genie Monsanto
Also critical is that VeraSun has no apparent liquidity issues standing in the way of its expansion. Recall that Aventine Renewable Energy
Related Foolishness:
- Check out this Chinese biofuels behemoth.
- Innovation abounds in the space, but doubters remain.
- Meanwhile, Monsanto has been rounding up growth.