In December, Viking Energy Group, Inc. (OTCMKTS:VKIN) announced an agreement to essentially purchase 100% interest in a biodiesel production plant located in Reno, Nevada. The acquisition is a Membership Interest Purchase Agreement where VKIN is acquiring a group of companies that are in the process of building the facility. The facility is expected to produce approximately 43 million gallons of renewable diesel annually. The primary unit at the plant is 95% complete, while the pre-treatment center is approximately 30% complete.

Biodiesel differs from petroleum diesel in that it is produced with organic renewable feedstock rather than environmentally hazardous crude oil. It is an efficient alternative energy source, with a smaller exhaust release than petroleum fuel. Biodiesel is primarily used by the Automotive, Aviation, Industrial, Marine, Agricultural and Mining industries.

Biodiesel Market Forecast

SME and FAME Biodiesel prices have steadily risen over the past 3 years. Each was below 1k per ton 3 years ago, FAME is now at 2.05k, and SME 1.59k.

According to Market Data Forecast, the size of the Global Biodiesel Market generated $46.79 Billion in revenue in 2021. It is expected to grow by a CAGR of 5.87% to reach over $51.48 Billion by 2026.

Market Data's forecast could be a bit conservative when you consider:

-S&P Global Platts Analytics, renewable diesel production is expected to reach 4.081 billion gallons annually by 2025, compared with the 538 million gallons produced in 2020.

-Global crude oil prices are forecasted to climb well above $100 per barrel which should increase demand for alternative fuels

US Policy to Benefit Biodiesel

The Department of Labor announced it is proposing a rule that investment managers can consider climate change and other ESG factors in making investment decisions. The proposed rule - which, if finalized, would help safeguard the more than half of American workers who participate in a retirement plan through their job, representing over 140 million Americans and more than $12 trillion in retirement savings and pensions - would protect workers by making sure that retirement managers "don't turn a blind eye to climate risks and other important factors." Essentially the rule is incentivizing investments in ESG companies like VKIN.

.

The federal government is the world's single largest purchaser of goods and services, spending over $650 billion in contracts in fiscal year 2020 alone. This week, the Office of Management and Budget (OMB) announced that the Federal Acquisition Regulatory (FAR) Council will begin the process of exploring amendments to Federal procurement regulations to require agencies to consider a supplier's greenhouse gas emissions when making procurement decisions and to give preference to bids from companies with lower greenhouse gas emissions. As part of this work, the FAR Council published this week an Advanced Notice of Proposed Rulemaking to gather information to help major Federal agency procurements minimize the risk of climate change.

Key Differentiating Features of VKIN's Facility

Looking at VKIN's potential facility, there are a few features it has which could help position the company as a biodiesel leader and make for a profitable balance sheet.

The first is the facility's location. Reno, Nevada has zero corporate taxes which will be a profit driver for VKIN over their competition. This is actually quite beneficial, and many investors may have not considered this yet, as the company did not point out the benefit specifically.

The second is the company's pre-treatment unit. Every renewable diesel plant in the US needs a pretreated feed to run, however, not all biodiesel production facilities have a pre-treatment center, VKIN's will.

Putting a pretreatment plant on-site gives greater feedstock flexibility to run more than soybean oil and take advantage of other local crops like canola and camelina.

This is particularly important considering the rising prices of pretreated feedstock. Increased transportation fuel demand for soybean oil increased its price, which has pulled up the costs of other renewable fuel feedstocks like beef tallow.

Finally, VKIN's ESG technology captures carbon emissions from combustible engines as well as captures commodities such as distilled water, ammonia, ethanol and methanol. Could potentially provide ethanol for biodiesel production. This is just an inference based on my research and has not been stated by the company.

Start your research on VKIN today.

Key Details on VKIN's Acquisition

There are a few more juicy details on this acquisition:

The closing date on this deal will be no later than January 31st, 2022. That means there could be a big release coming soon. Which could be a catalyst for the stock price.

VKIN does still have the ability to pull out of the deal if their terms aren't met. So this isn't a 100% done deal.

The good news is if the deal closes this month, everything looks good for VKIN.

To learn more about VKIN start your research with our most recent article:

https://topnewsguide.com/2021/12/13/viking-energy-group-inc-otcmkts-vkin-helps-industry-reduce-carbon-footprint/

Disclaimers: TopNewsGuide 'TNG' is responsible for the production and distribution of this content. TNG is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available by TNG is not intended to be, nor does it constitute, investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall TNG. be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by TNG., including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. TNG. strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. For some content, TNG., its authors, contributors, or its agents, may be compensated for preparing research, video graphics, and editorial content. TNG has been compensated up to two thousand five hundred dollars via wire transfer by Regal Consulting LLC to produce and syndicate content for Viking Energy (VKIN). As part of that content, readers, subscribers, and website viewers, are expected to read the full disclaimers and financial disclosures statement that can be found on our website.

The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.

CONTACT: Mark McKelvie

mark@razorpitch.com

(754) 233-0966

.

(C) 2022 M2 COMMUNICATIONS, source M2 PressWIRE