A New Biofuels IPO - Actually.
Codexis, Inc., a San Francisco-based company developing biocatalysts to better enable the commercial use of cellulosic feedstock biofuels, among other things, has launched a $100m IPO.
The S-1 warns potential investors the company's performance may be dependent on "the existence of government subsidies or regulations with respect to carbon dioxide emissions." Codexis is far from unique in this respect - many alternative energy companies depend, to varying degrees, on government regulation to "make the market." However, to date the government has generally failed to deliver and the alternative energy industry has suffered accordingly. The Wall Street Journal notes:
An alternative energy, U.S.-listed IPO is something of a novelty. The last biofuels IPO was way back in December 2007, when Chinese biodiesel maker Gushan Environmental Energy Ltd. debuted. After that there have only been three IPOs – solar outfits Real Goods Solar, GT Solar and STR Holdings. (Hat tip to Dealogic for the data.) Battery maker A123 began trading a couple months ago also.
In retrospect, the alternative energy industry may have over-commited on "climate change" as a policy driver. Now, with cap and trade bogged down in Congress, the industry's short and mid-term prospects are muddy, complicating private investment. As discussed here, the industry should consider relying far more on energy security, and far less on global warming, to make its case in Congress.
