Origin Materials (ORGN) shares soared today after the company reported its second-quarter financial results and secured a significant new contract. The company’s positive outlook on its biomass conversion technology and the potential for profitability in the near future led to an analyst upgrade and a surge in stock price.
The global cellulosic ethanol market is projected to grow by $0.60 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 67.86% during the forecast period. Cellulosic ethanol, derived from cellulosic biomass, is a renewable fuel gaining popularity due to its climate change mitigation and energy security benefits. Production involves enzymatic hydrolysis, fermentation, and ethanol extraction from lignocellulosic feedstocks like agricultural waste. However, increasing demand and competition for feedstocks have driven up prices, raising concerns over food prices and sustainability.
