Renova Energy (RVA) is a US-based company listed in London which specalises in producing ethanol from grain to add to petrol in order to lower emissions. Already profitable, turnover is expected to leap over the next couple of years as US legislation (passed yesterday - see RNS) requires a big increase in the use of ethanol based fuel. With enviromental rules tightening this Company could be in for a very profitable time. As usual DYOR.

Very interesting long-term play, fuel from ethanol ! very good prospects more so than d1 and biofuels imo

Can't belive stodd and watched this one get away, too late or early days, personally thinks it's a great share but looks overvalued until it's new plants come on stream, comments??

Can't belive stodd and watched this one get away, too late or early days, personally thinks it's a great share but looks overvalued until it's new plants come on stream, comments??

Can't belive stodd and watched this one get away, too late or early days, personally thinks it's a great share but looks overvalued until it's new plants come on stream, comments??

Renova Energy says December saw record monthly production
AFX


LONDON (AFX) - Renova Energy PLC said it saw record monthly production of 477 Mgal in December 2005.

The ethanol production, distribution and marketing company said it has added four distribution terminals in new markets within the states of Washington and Colorado.

It also said a feasibility study of the Idaho plant is progressing with key process parameters defined.

Renova is benefiting from higher prices for its products and said in the nine months to end-Dec it saw a 5 pct increase in average realised prices.

Ethanol sales volumes in the nine months grew to 4,329 Mgal from 4,144 Mgal for the same period in 2004.

Average daily production over the nine months was 15,840, down from 16,040.

The board said production yields improved significantly in the quarter ended Dec 31 2005 as a result of higher quality corn from the 2005 harvest.

The group also said forward purchases of natural gas have protected it from the hurricane induced price spikes in the last quarter and will continue to eliminate energy price and cost uncertainty for the rest of the financial year.

Renova has entered into lease agreements for terminals in Denver, CO, and Fountain, CO, and these terminals are expected to be fully operational by the

end of March 2006. Renova now has 14 distribution terminals across its target

market.

The company has also completed the purchase of a 2 acre site in Fountain, CO, where its first owned terminal will be constructed and is expected to be operational by summer 2006.

At the company's Torrington plant the company's expansion project is now over 50 pct completed, although currently slightly behind schedule for the guaranteed completion date in June 2006.

Chairman Chris Thomas said the contractor is working closely with the construction sub-contractor to get the Torrington expansion back on schedule and at this stage the board does not expect a significant variation from the original project timeframe.

In the meantime, he said trading conditions remain favourable with high product prices and lower feedstock costs.

newsdesk@afxnews.com

Bush backing boosts Renova - BUY


George W Bush is not noted for according a high political priority to environmental issues. But the American President makes an exception in the case of ethanol, which is produced as an alcohol derivative from grain and sugar, and can be easily blended with petrol to reduce carbon emissions from motor vehicles.

By promoting the use of ethanol, the US administration scores points with the green lobby for helping reduce emissions and with mid-western, Republican-voting farmers for providing them with an extra source of revenue. The new US Energy Policy Act sets out to increase the compulsory use of renewable fuels in motor fuels from four billion gallons a year to 7.5 billion gallons by 2012.

Few are cheering louder than Chris Thomas and Fanton Chuck, respectively founding chairman and chief executive officer of Renova Energy, the London-based company which supplies ethanol for motor fuel in the Rocky Mountain states. Floated on AIM in June with a 7 million fundraising at 69p by broker Bell Lawrie, Renova has seen its shares surge on the back of an expansion programme that sees the company increase its annual production from six million to 100 million gallons within five years.

Chuck, 42, a former head of Asia Pacific energy for Deutsche Bank, holds 26.4 per cent of Renova, which was originally spawned by another company, Melrose Resources, to exploit ethanol potential. Chairman Thomas, 43, with 10.5 per cent of Renova, has been running Melroses US operations for seven years and is unequivocal in his reaction to the US legislation.

The ethanol industry in the US has been growing at an unprecedented rate in the last few years and this new legislation provides added stimulus to Renovas growth, he enthuses. The company, whose operations are based in Wyoming, negotiates annual supply contracts from local farmers and provides a distribution network in the area seen as constituting a significant entry barrier to would-be competitors for retailers, who can obtain a 51 cents (30p) a gallon sales tax rebate for blending it with standard petrol.

At present, ethanol is typically mixed with petrol in a ten per cent blend, though modern flexible fuel vehicles can take an 85 per cent blend, and Thomas says a 30 per cent ethanol blend requires no engine modifications and is a competitively-priced product. He also claims significant economies of scale, facilitating the hefty capacity increases he plans.

Renova, which turned a near-500,000 loss into a 32,000 pre-tax profit in the year to March 2004, expects to report pre-tax profits of around 420,000 for 2004-05. Bell Lawrie sees consolidation in the current year depressing profits to 190,000 in 2005-06, but predicts a surge to 2.6 million pre-tax next year on turnover more than doubling to 15.5 million, with further dramatic gains in 2007-08 and 2008-09.

RVA is 233p now...


Alternative fuels

The Renewable Fuels Standard (RFS)

The Renewable Fuels Standard (RFS) is a policy that would require an increasing amount of renewable fuels to be used each year. The RFS in the recently passed federal energy bill would slate 7.5 billion gallons of ethanol to be used in the U.S. by 2012. In 2004, the U.S. used 3.4 billion gallons of ethanol.
The RFS would streamline the current patchwork of fuel regulations we have across this country. States, regions and in some cases cities have different fuel requirements, and the RFS would allow renewable fuels to be used where they make the most sense instead of forcing the production of all these boutique fuels.

look at this go?

r u in it, ellio?

Take your profits and run to GTL .

did just that a few weeks ago at 248p missed the top by 2 days on the way up but glad to change, more than doubled my holding in gtl even though its gone down once the plant comes online soon renova is going to look fairly small compared.
it annoys me when directors make new shares available to them and just select large investors, for half the market value. should make it for everyone fairs fair we all own part of the company

Great work miracles, if you got in low originally in RVA then you could easily double your money this year and more.
I should have had the foresight to do the same but Ive got a large chunk in GTL now so its just waiting time.
Also hoping that shares mag trades out RVA for GTL soon to show a little bit of tenacity in their green portfolio.

anyone any insight why rva is down today?

becuase GTL is the next big thing and Renova holders are beginning to realise it.

Not deramping but
Renova Results just out, comparing their ethanol production for six months at 2.4 MMgal and their M/Cap it does make GTL look cheap, Gtl on start up are going to produce 50MMgal rising to 100MMgal or am I missing some thing.

Average daily production from the old plant prior to decommissioning on 11 July
2006 was 13,721 gal/d (2005: 14,084 gal/d), which was equivalent to 100% of
name-plate capacity despite some disruption during this period due to ongoing
construction work. Following a shut-down period of 5 weeks whilst the final
tie-ins for the new plant were being completed, production from the new plant
commenced in August 2006. Average daily production during the start-up phase
through to 30 September 2006 was 20,403 gal/d. Total production for the six
month period was 2.4 MMgal (2005: 2.6 MMgal).

Running a spread of 15p at a sp of 107.5p does not help in this market. RVA will continue to slip.

anyone knows why what is going on with the sp today?

Maybe some bad news is imminent

Resistance is futile!!!

This is free, free falling

on the bounce today, after a large buy trade earlier this morning
on the chart could be a double bottom forming as Indicators are at oversold

+3p and now looking good on the bounce

I am cautious of RVA...its bounce is not as pronounced as its dippings.

This looks like a seriously big US-operation...the problem is will tere be any profits for us Brits?
The Co raised a lot of money (twice?) on AIM and some foolhardy types were prepared to pay GBP2 for the stock and even now at 88p I'm not convinced there aren't better investments about. Woolworth can be looked at, just go in...and has a reasonable yield - - if management could only get to grips with the product-mix it should surely move up? (WLW is about 29p) - so here we ahve a US-based co subject to US Legislation (Oops, look at PartyGaming!) and no profits returned to shareholders.
If there is a [RVA]-turnaround ...(looking at the charts) - I can't see it.

on the way up?

these got a kicking today.............does anyone think these will recover?

i bought in at 90p some time ago

The graph is relentless - 46.5p now.

no probably not scott. GTL have far stronger and more profitable plant and are heavily on the slide. if you like ethanol as a sector you'd be better switching but neither i would advise as a buy just yet.

Suspended at 33.5p...


Renova Energy plc
17 December 2007

The Company has today requested that the trading of its ordinary shares be
suspended with immediate effect pending clarification of its financial position.
The Company has identified cost overruns in relation to the construction of its
new ethanol facility at Heyburn, Idaho, and a further announcement will follow
as soon as possible.

Now 12.5p due to costs overrun of US$11 - 13 million - bad management...


Renova Energy plc
07 January 2008

Renova Energy plc ('the Company' or 'Renova')

Project costs and funding update

At 12.30 p.m. today, the suspension of trading on AIM in Renova Energy plc's
(RVA:AIM) ordinary shares will be lifted.

Renova, the ethanol production, distribution and marketing company, today
provides an update on the Heyburn project and the Group's financial position.

Over the course of 15/16 December 2007, Renova identified cost overruns in
relation to the construction of its combined ethanol and power plant at Heyburn,
Idaho, and a resultant funding shortfall to achieve completion of this project. The Company's shares were suspended from trading on AIM on 17 December 2007 pending further investigation and clarification of the issue.

A preliminary investigation by Renova has revealed cost overruns of approximately US$11 - 13 million which would take total project costs to US$57 - 59 million if the project were to proceed on the current schedule to start-up in
March 2008. However, Renova does not have sufficient funds available under
existing bank facilities and from operating cashflow to maintain this schedule.
As a result of this funding shortfall Renova has suspended work on the Heyburn
facility and, as a consequence, it is now in breach of its banking covenants
which were structured around the original project start-up date. Renova has
outstanding term loans under these facilities amounting to US$28 million on
which repayment was scheduled to commence on 30 June 2008 but, as a result of
the breach in banking covenants, this is now repayable on demand. Renova is in
discussions with its bankers regarding a rescheduling of this debt and the
possible provision of additional facilities as part of a refinancing package,
which is also likely to include new equity capital, to complete the Heyburn
plant.

A further detailed review of the Heyburn project is now underway to identify
project specification changes and other cost savings that could be achieved over
a revised project schedule. The Company has appointed independent consultants to
assist in conducting this review.

New Renewable Fuel Standard

On 19 December 2007, the Energy Independence and Security Act 2007 was passed into law in the US. This new legislation includes a revised Renewable Fuel Standard ('RFS') increasing the mandated usage of renewable fuels in the US to
36 Bgal by 2022. In the near term, the RFS now requires 9 Bgal of renewable fuel
usage in 2008, increasing to 11.1 Bgal in 2009, compared to 4.7 Bgal in 2007.
This legislation significantly increases the demand for ethanol and redresses the ethanol supply and demand balance. Ethanol prices have strengthened as a result of this new legislation.

Current trading

Renova's underlying production and marketing business remains sound. Renova's
operating plant at Torrington, Wyoming, continues to generate positive cashflow.
As previously reported, for the six month period to 30 September 2007, the plant
produced 3.4 MMgal. The programme to increase production capacity at the
Torrington plant to in excess of 10 MMgal/yr is still ongoing and is scheduled
for completion in March 2008.

The distribution business continues to successfully grow with 6.0 MMgal being
distributed through its 14 terminals during the same six month period to 30
September 2007 with an average realised ethanol price of US$2.37 per gallon.
Overall, the US operations generated US$1.9 million in cash during this period.
Sales for the three months ended 31 December 2007 amounted to 3.5 MMgal of
ethanol at an average realised price of $2.10/gal compared to 3.1 MMgal at $1.94
/gal for the same period last year. After a decline in ethanol prices in the
last quarter of 2007, prices have strengthened recently with Renova's posted
terminal prices now in the range of $2.25 - $2.45/gal.

Anyone that invested c.12 months ago has seen this US-based project swallow up98% of their investment ( DYOR). so with the possibility of renegotiating Banking Deals , more share-dilution in effect anyone in then can write this off ( as of Feb2008, say).
All of this is to make green-fuel for a country that doesn't give a fig about energy - and even if the Government does it wants to be re-elected in 4-year's time - - - hardly a good prospect if folk have to stay at home(no flights), put on wooly-hats(in winter) and cycle into town for groceries whilst growing their own healthy veg.

Yes it could be turned-round - - - - but NOT with my money!

Thse small investmentas are doomed to failure, IMHO.

LONDON (Thomson Financial) - Renova Energy plunged 42 percent -- or 3-1/2 pence to 4-3/4 -- after the ethanol production, distribution and marketing company said it is in ongoing discussions with its lenders to restructure the existing borrowings.

The company expects the total project cost of combined ethanol and power plant at Heyburn, Idaho, which has been on hold since December 2007, is now estimated to be $60.1 million.

We drive, they starve. The mass diversion of the North American grain harvest into ethanol plants for fuel is reaching its political and moral limits.

"The reality is that people are dying already," said Jacques Diouf, of the UN's Food and Agriculture Organization (FAO). "Naturally people won't be sitting dying of starvation, they will react," he said.

The UN says it takes 232kg of corn to fill a 50-litre car tank with ethanol. That is enough to feed a child for a year. Last week, the UN predicted "massacres" unless the biofuel policy is halted.

We are all part of this drama whether we fill up with petrol or ethanol. The substitution effect across global markets makes the two morally identical.

Mr Diouf says world grain stocks have fallen to a quarter-century low of 5m tonnes, rations for eight to 12 weeks. America - the world's food superpower - will divert 18pc of its grain output for ethanol this year, chiefly to break dependency on oil imports. It has a 45pc biofuel target for corn by 2015.

Argentina, Canada, and Eastern Europe are joining the race.

The EU has targeted a 5.75pc biofuel share by 2010, though that may change. Europe's farm ministers are to debate a measure this week ensuring "absolute priority" for food output.

"The world food situation is very serious: we have seen riots in Egypt, Cameroon, Haiti and Burkina Faso," said Mr Diouf. "There is a risk that this unrest will spread in countries where 50pc to 60pc of income goes to food," he said.

Haiti's government fell over the weekend following rice and bean riots. Five died.

The global food bill has risen 57pc in the last year. Soaring freight rates make it worse. The cost of food "on the table" has jumped by 74pc in poor countries that rely on imports, according to the FAO.

Roughly 100m people are tipping over the survival line. The import ratio for grains is: Eritrea (88pc), Sierra Leone (85pc), Niger (81pc), Liberia (75pc), Botswana (72pc), Haiti (67pc), and Bangladesh (65pc).

This Malthusian crunch has been building for a long time. We are adding 73m mouths a year. The global population will grow from 6.5bn to 9.5bn before peaking near mid-century.

Asia's bourgeoisie is switching to an animal-based diet. If they follow the Japanese, protein-intake will rise by nine times. It takes 8.3 grams of corn feed to produce a 1g of beef, or 3.1g for pork.

China's meat demand has risen to 50kg per capita from 20kg in 1980, but this has been gradual. The FAO insists that this dietary shift is "not the cause of the sudden food price spike that began in 2005".

Hedge funds played their part in the violent rise in spot prices early this year. To that extent they can be held responsible for the death of African and Asian children. Tougher margin rules on the commodity exchanges might have stopped the racket. Capitalism must police itself, or be policed.

Even so, the funds closed their killer "long" trades in early March, causing a brief 20pc mini-crash in grains. The speculators are now neutral on the COMEX casino in New York.

They have undoubtedly bid up the futures contracts, but the FAO says this has no durable effect on food prices. These index funds never take delivery of grains. All they do is distort the shape of the maturities curve years ahead, allowing farmers to lock in eye-watering prices. That should cause more planting.

Is there any more land? Yes, in Russia, Ukraine, and Kazakhstan, where acreage planted has fallen 12pc since Soviet days. Existing grain yields are 2.4 tonnes per hectare in Ukraine, 1.8 in Russia, and 1.11 in Kazakhstan, com-pared with 6.39 in the US. Investment would do wonders here. But the structure is chaotic.

Brazil has the world's biggest reserves of "potential arable land" with 483m hectares (it currently cultivates 67m), and Colombia has 62m - both offering biannual harvests.

The catch is obvious. "The idea that you cut down rainforest to actually grow biofuels seems profoundly stupid," said Professor John Beddington, Britain's chief scientific adviser.

Goldman Sachs says the cost of ethanol from corn is $81 a barrel (oil equivalent), with wheat at $145 and soybeans $232. It is built on subsidy.

New technology may open the way for the use of non-edible grain stalks to make ethanol, but for now the only biofuel crop that genuinely pays its way is sugar cane ($35). Sugar is carbohydrate: ideal for fuel. Grains contain proteins made of nitrogen: useless for fuel, but vital for people.

Whatever the arguments, politics is intruding. Food export controls have been imposed by Russia, China, India, Vietnam, Argentina, and Serbia. We are disturbingly close to a chain reaction that could shatter our assumptions about food security.

The Philippines - a country with ample foreign reserves of $36bn (Britain has $27bn) - last week had to enlist its embassies to hunt for grain supplies after China withheld shipments. Washington stepped in, pledging "absolutely" to cover Philippine grain needs. A new Cold War is taking shape, around energy and food.

The world intelligentsia has been asleep at the wheel. While we rage over global warming, global hunger has swept in under the radar screen.

RNS today is this the end?

This is a good example of bad management - Renova has gone to 3p.