Renewable Energy Group Inc (NASDAQ: REGI) was one of the big gainers in Tuesday’s session. The stock opened with a gap up to close the day with gains of 26.92%. This came after Broco oil, a family-owned Fuel Company announced that it had been contracted for heating oil services in Boston city-owned buildings.
The contract includes Boston police stations, firehouses, and all municipal-owned facilities. The contract runs for a year, and started on November 1st. The oil that Broco oil will provide is known as B20 Bioheat and is a blend with 20% biodiesel. This is a renewable liquid that cuts on greenhouse emissions as compared to petroleum-based heating oil.
The link between this deal and REGI is that, Broco oil gets its biodiesel from the Renewable Energy Group. The two companies entered into a partnership in May 2019 in which, Broco oil would be receiving its supplies from Renewable Energy Group. Under the deal, Renewable Energy Group sends the biodiesel through rail from its Midwest facilities, to Broco’s bulk plant that is based in Haverhill, Massachusetts, where it is blended and supplied to customers. As such, the new deal means an increase in the amount of product that Renewable Energy Group ships to Broco Oil.
Commenting on the deal, Renewable Energy Group Vice President Gary Haer stated that, it was great for the company, Broco oil and also for the city of Boston. He added that, it will help reduce the city’s CO2 emissions by over 300k pounds.
From the charts, yesterday’s gap up saw the stock trade between $23.92 and $28.44, before closing the day at $25.08. Volumes in the day stood at 5.24 million.
About Renewable Energy Group Inc
Renewable Energy Group Inc produces clean, low carbon fuels. The company has 14 bio-refineries in the U.S and Europe. It is headquartered in Ames, Iowa.