Nova Tops List of Rising Green Stocks

John Davis

Nova Biosource FuelsFinancial web site has put a biodiesel producer which uses a unique feedstock for biodiesel at the top of its “Five Green Up-and-Comers” stocks.

The article says that Nova Biosource Fuels use of animal fat, which would normally be thrown out, is at the head of the class:

Rising prices for the raw materials used to make biodiesel, known as feedstock, work in Nova’s favor. At least 75% of U.S. biodiesel is made from soybean oil, which costs about 31 cents per pound, up from 23 cents last year, and is expected to rise to as high as 36 cents per pound by 2008. But animal tallow, the fatty waste from meat processing, costs as little as 20 cents a pound, in part because there aren’t as many commercial uses for tallow as there are for soybean oil. Nova’s patented process can use 25 different feedstocks, including animal tallow, to produce biodiesel.

The Texas-based company started its first biodiesel plant in Iowa a year ago and hopes to soon have six more.