Noble Environmental - Competitors

Noble Environmental Competition

Now Viewing Noble Environmental's competition in: Biofuels Production

Recent Developments

Government Grants for Biofuel Seeing Results - The US government's grant program to support biofuel production has resulted in a major cellulosic ethanol announcement. California-based BlueFire Ethanol will be the first plant that diverts biomass (such as yard waste) from landfills to produce ethanol. While corn-based ethanol, currently produced by multiple US plants, is controversial due to its environmental impact, cellulosic ethanol is viewed as a more environmentally friendly fuel that can significantly reduce the nation's dependence on petroleum.

Drumbeat Grows for Higher Ethanol Blends - Following successful testing by the Minnesota Department of Agriculture, the US government may approve higher blends of ethanol in gas, a move certain to increase demand for the fuel. In many areas, up to 10 percent of a tank of gas is comprised of ethanol, but research indicates that blends up to 20 percent may work in autos designed to run on gas. The Renewable Fuels Association (RFA) has long supported expansion of the US ethanol industry.

Automaker Stakes Future on Ethanol - US auto manufacturer GM is staking a large part of its future on ethanol, by claiming that 20 million of its vehicles will run on ethanol by 2020, which means many more cars and trucks leaving the factory ready to run on the fuel. GM has produced ethanol-compliant vehicles for years, but industry experts say that its new commitment is a landmark endorsement of ethanol. GM has also invested significant capital in Coskata, a biofuel company that produces cellulosic ethanol, often considered the next generation of ethanol.

Competitive Landscape

Demand is driven by federal legislation and regulations that establish a government-mandated market for biofuels. The profitability of biofuel production facilities depends on prices of gas and diesel, which fluctuate based on world petroleum demand and domestic refinery utilization. Economies of scale in ethanol production are limited due to the transportation costs associated with gathering feedstocks (corn and other biomasses) and transporting the ethanol to blending sites. As a result, large companies operate multiple production facilities. Small companies can compete effectively by developing business relations with distributors and being able to assure delivery consistently. Revenue per employee in ethanol production facilities is about $1 million per year.

Full Industry Overview For Biofuels Production

Biofuels Production Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US basic organic chemicals, which is an indicator for biofuels, is forecast to grow at an annual compounded rate of 5.6 percent between 2007 and 2012.

Biofuels Growth Peaks

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.