Investors should temper their enthusiasm over the agreement between BioFuel Energy (BIOF +4.8%)...


Investors should temper their enthusiasm over the agreement between BioFuel Energy (BIOF +4.8%) and Gevo (GEVO -7.5%) to explore large-scale production of isobutanol light of the small size of the isobutanol market, Tristan Brown writes. The conversion of only a few U.S. ethanol facilities would swamp the market and drive down profits of retrofitted facilities.

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