Shares Of Renewable Energy Group Spike, Company To Study Biodiesel Production Methods With ExxonMobil

Shares of Renewable Energy Group Inc REGI were trading higher by more than 8 percent mid-Tuesday afternoon after the company confirmed it has entered into a new partnership with Exxon Mobil Corporation XOM. Renewable Energy Group said in a press release it will team up with Exxon to study the production of biodiesel by fermenting renewable cellulosic sugars from sources such as agricultural waste. Terms of the agreement were not initially disclosed. Renewable Energy Group noted that it has developed a patented technology that uses microbes to convert sugars to biodiesel in a one-step fermentation process similar to ethanol manufacturing. "This research is just one way ExxonMobil is working to identify potential breakthrough technologies to reduce greenhouse gas emissions, increase energy supplies and realize other environmental benefits," said Vijay Swarup, vice president of research and development at ExxonMobil Research and Engineering Company. "The science is extremely complex, but we hope to identify new affordable and reliable supplies of energy for the world that do not have a major impact on food supplies." "REG has a long history of innovation in the production of advanced biofuels from lower carbon, waste feedstocks," said Eric Bowen, REG Vice President and head of REG Life Sciences. "We look forward to this collaboration with ExxonMobil to advance our proprietary cellulosic sugar fermentation technology and capitalize on the combined power of cellulosic sugars and microbial fermentation to revolutionize the production of ultra-low carbon, cleaner burning advanced biofuels."