Biofuel company announces profits

A major biofuel producer has announced a significant increase in profits as the bid to go greener has led to a boost in demand.

Biofuel Energy Corporation announced that for the three months to October, it generated $2.5 million (£1.56 million) of net income on revenues of $162.5 million, an improvement of $4.3 million on the previous quarter.

The organisation claimed that as well as increased demand, improved yields and the introduction of operational efficiencies had also led to the boost in profit.

"Margins strengthened from the second quarter and continued to show strength in October. With our seasonal downtime behind us, and industry supply and demand tighter than they've been for some time, we believe we are poised for a strong fourth quarter," said Scott H Pearce, the company's president and chief executive.

The Department for Transport has recently introduced a new initiative to increase the biofuel content of regular unleaded petrol in a bid to make the roads greener.

Posted by Claire Manning