Renewable Energy Group Inc., a green diesel maker, is exploring options after receiving takeover interest, including selling itself. Its shares soared as much as 28% in its largest climb since March 2020 on the news. The company is working with financial advisers, the person said, asking not to be identified because the matter is private. Renewable Energy has held recent takeover talks with large oil and gas companies. If a deal is struck, an agreement could be announced within weeks. Renewable Energy’s plans could always change, and it could still decide to remain independent. Renewable Energy rose 24% in morning trading in New York on Feb. 23, giving the company a market value of about $2 billion. The stock is down about 57% in the past year.
The company’s biodiesel margins have been hurt by higher soybean costs. The note called Renewable Energy a pioneer that has driven oil majors and refiners to convert some of their plants into biorefineries. Like many companies in the space, it has benefited from biodiesel tax credits in the U.S. Renewable Energy bought a minority stake last year in a startup called Booster that delivers fuel directly to vehicles. Chevron has set a target to cut operational emissions to net zero by 2050 and in September pledged to invest $10 billion to reduce its carbon emissions footprint through 2028, with about $3 billion earmarked for renewable fuels.