Jefferies Provides Color on Green Plains

Jefferies provided color on Green Plains GPRE. In a research report published today, Jefferies commented on GPRE's algae JV. In the report, Jefferies states, “At a typical ethanol plant, roughly a third of each corn kernel is emitted as CO2. GPRE's algae JV can capture some of this CO2 and convert it into algae. In the best case scenario, the JV could have more than 225,000 tpy of capacity in place by the end of 2013, capable of generating $135m of EBITDA. In effect, GPRE's share of the JV could add ~$0.10/gal in co-product value to its ethanol margins, and be worth $10+/share.” At the moment, Jefferies has a Buy rating and a price target of $16 placed on the company's stock. On Friday, Green Plains lost 3.95% of its value to finish the week at $10.71.