Internet firms like LinkedIn, Groupon and Facebook are presently the big craze in terms of initial public offerings. Many worry that this group only represents the next coming of the .com bubble, though, and some interesting prospects are coming out in other growing fields. Reuters reports that one of the biggest biofuel companies in the U.S. announced its IPO on Monday.
Iowa-based Renewable Energy Group filed its IPO on the Nasdaq for $100 million, only months after other major biofuel players like Solazyme, Gevo and Kior did the same.
Unlike those others, Renewable Energy Group is a conglomeration of several other biofuel companies, but the firm sold 22 percent of all biodiesel produced in the U.S. last year, though a small proportion was produced by other companies. The company produces its fuel from animal fats, cooking oil and corn oil, which generally prove cheaper than options like virgin vegetable oil and its prior feedstock, soybean oil.
The biofuels market has grown steadily as government mandates for fuel mixtures have grown in the U.S., and the industry has begun to expand beyond automobiles. Bloomberg reports that the use of biofuel mixtures in airliner fuel have been approved by industry standard setters.