Clean Energy Brazil is a British green investment company whose main sources of revenue come from the Brazilian sugar cane and ethanol markets. Initially begun in 2006 to take advantage of the growing biofuels market worldwide, the company has since changed course due to the lower demand for biofuel in the later half of the 2000s. Ethanol is still a huge market in Brazil, and of course sugar will always sell, but sugar cane biodiesel is not wanted as much. The name “Clean Energy Brazil,” therefore, is somewhat of a misnomer now, as the company’s offerings have less to do with energy and more to do with any and all sugar cane by-products.
The company has shown remarkable flexibility; this is the only reason it is still around now, due to the drying up of biofuel energy markets. Investors at Clean Energy Brazil believe that the retreat from biofuels is only temporary, and continue to make their company profitable though their end results only partly have to do with providing clean energy. Ethanol is still used as a power source, but it is not as widespread as it once was.
The stock was admitted to the AIM in 2006 and it saw a major dive when the rest of the stock market dove in 2008. It fell to nearly 20% of its initial value and hasn’t really picked up steam since then. Flatlining at around 15p per share, CEB is waiting for some good news about the increased viability of ethanol as a fuel or electricity source. This would push demand for sugarcane byproducts higher in Brazil and around the world, and the stock price would likely rise.
Investors should take note that Clean Energy Brazil is something to be aware of but not to invest heavily in for now. Biofuels-related news will cause the price of CEB to go up or down as appropriate.