|Biofuels are an important and rapidly growing global renewable energy resource. The use of biofuels is touted as a means to meet two key public policy objectives: energy security and preserving the environment. Produced from agricultural crops, biofuels are seen as a valuable domestic supply of fuel that can reduce dependence on foreign oil. In addition, utilizing biofuels or blending them with traditional fuels can assist in reducing vehicle carbon emissions.|
As a result, government mandates and general public support for biofuels are facilitating a rapidly growing market. The most common biofuels are biodiesel and ethanol. Biodiesel remains an important niche market, but ethanol is more prevalent and holds the greatest potential for growth.
Biofuels are traded in an active commodity market in which counterparties transact in order to efficiently move the physical product and manage risk associated with volatile price movements. Trading counterparties include producers, wholesalers, banks, marketers, distributors, speculators, and end users (such as oil companies and gasoline blenders).
Evolution Markets serves all these counterparties, providing an efficient marketplace for executing trades and implementing risk management strategies. Evolution Markets also provides diversified financial services to market participants seeking to structure transactions, physically move biofuel stocks, and obtain project financing.