Renewable Energy Group and Phillips 66 Pulled the Plug on Partnership. What's Next?
In investing and in life, panicking is rarely an effective response to obstacles. But investors with a long-term mindset might be getting a little nervous with Renewable Energy Group (NASDAQ: REGI).
The nation's largest biodiesel producer recently announced that a long-awaited joint venture with Phillips 66 (NYSE: PSX) will no longer be completed. The joint venture had teased plans to build a 250-million-gallon-per-year (mmgy) renewable diesel facility on the West Coast. It would have given Renewable Energy Group easy access to markets that follow a lucrative subsidy program initiated by California, represented the highest-margin production facility in the company's fleet, and more than tripled the volume of renewable diesel produced from the company's technology platform.
Now, investors are left with more questions than answers for the renewable energy stock. Most important: What happens next?
Source Fool.com
