How to Invest in Biofuels

Fuel is one substance that you know is always going to be needed on this planet. As our fossil fuel sources deplete, many consumers are looking to alternative fuel sources. This change in consumer habits makes it an ideal time to invest in biofuels. A biofuel is a natural occurring substance that can replace the use of petroleum gas.

Instructions

• 1

  Locate a listing of biofuel companies that are publicly traded. Current stocks available include Green Plains Renewable Energy, Bluefire Ethanol, Earth Biofuels, and Andersons, Inc. For a complete list, go to the Biodiesel Investing website.

• 2

  Get a financial adviser to assist you. The adviser should be knowledgeable of commodities and able to give you insight on the best biofuel companies that you should invest in. Advisers with a background in trading alternative energy stocks can help get you started.

• 3

  Research the financial histories of the biofuel companies that you are considering. If you see steady growth, then the stock is likely to earn you a return. Track biofuel stock growth through sites like Alt Energy Stocks.

• 4

  See what type of technologies they are considering. For example, Bunge is setting up plants in Europe to start producing biofuels on a large scale.

• 5

  Expect some risk when investing in biofuels. Many startups are entering the biofuels market. Finding one that proves profitable can be a gamble.