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| VeraSun raises $400 million, shares soar 30% on first day |
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| Thursday, 15 June 2006 | |
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VeraSun Energy Corporation, America'a second largest ethanol producer, rose by 30% yesterday on their debut in New York. The spectacular opening for VeraSun affected other biofuel producers, among them Pacific Ethanol, rising 10%. Fears over security of supply and high prices for petroleum products are fuelling a scramble to invest in alternative energy producers worldwide.
Read VeraSun's press release here:
http://www.verasun.com/press/releases_06-14-06.htm
Editorial comment: The level of investor interest in biofuels has far surpassed the supply of projects needed to satisfy it. With few exceptions, existing biofuel production facilities are not of the scale or technical sophistication required to meet soaring demand by consumers and investors. BP's announcement yesterday of $500 million for a 'biofuel university' (see article below) is a pragmatic response to this deficit in knowledge, skills and infrastructure.
David Smith, Singapore
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