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Can Biogenic CO2 Become Alto Ingredients' Next Growth Business?
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Key Takeaways
Alto Ingredients is expanding its focus on creating more value from the biogenic CO2.
A third liquid CO2 storage tank in Columbia is set to expand capacity amid a tight Pacific Northwest supply.
Pekin's CO2 projects could boost revenues and support greater Section 45Z tax-credit benefits.
Alto Ingredients, Inc. (ALTO - Free Report) is increasingly looking beyond ethanol and positioning carbon dioxide (CO2) as a higher-value growth opportunity that could strengthen its earnings mix over time. In its first-quarter 2026 results, management highlighted investments to create greater value from its biogenic CO2 production.
One key initiative is underway at the company's Columbia facility, where a third liquid CO2 storage tank is being added to expand processing and storage capacity. The project is expected to help Alto Ingredients capitalize on strong demand in the Pacific Northwest, where supplies of premium-grade CO2 remain tight. Maintenance completed during the first quarter is also expected to improve plant reliability and support growing customer demand during the summer season.
The bigger opportunity, however, lies at Alto Ingredients' Pekin campus. Selling more liquid CO2 could increase revenues, while capturing or storing CO2 emissions could reduce the carbon intensity of its fuel production. That, in turn, could help Alto Ingredients qualify for greater benefits under the Section 45Z clean fuel tax credit program.
Management also noted that changing market conditions and evolving policy support have opened up more flexible options than before. Instead of developing a carbon capture solution entirely on its own, Alto Ingredients is evaluating opportunities with other parties that could lower capital investment requirements. The company's ongoing efforts reflect its focus on creating more value from the biogenic CO2.
What Do the Latest Metrics Say About Alto Ingredients?
Alto Ingredients, which competes with Green Plains Inc. (GPRE - Free Report) and MGP Ingredients, Inc. (MGPI - Free Report) , has seen its shares rally 351.3% in the past year compared with the industry’s 5.5% growth. Shares of Green Plains have risen 150.3%, while MGP Ingredients has declined 42.8% during the same period.
Image Source: Zacks Investment Research
From a valuation standpoint, Alto Ingredients’ forward price-to-sales ratio of 0.4 is lower than the industry’s average of 3.11. The company is trading at a discount to Green Plains (with a forward price-to-sales ratio of 0.53) and MGP Ingredients (0.73)
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Alto Ingredients’ 2026 and 2027 earnings per share implies a year-over-year rise of 671.4% and 53.7%, respectively.
View the Zacks #1 Rank List
Image: Bigstock
Can Biogenic CO2 Become Alto Ingredients' Next Growth Business?
Key Takeaways
Alto Ingredients, Inc. (ALTO - Free Report) is increasingly looking beyond ethanol and positioning carbon dioxide (CO2) as a higher-value growth opportunity that could strengthen its earnings mix over time. In its first-quarter 2026 results, management highlighted investments to create greater value from its biogenic CO2 production.
One key initiative is underway at the company's Columbia facility, where a third liquid CO2 storage tank is being added to expand processing and storage capacity. The project is expected to help Alto Ingredients capitalize on strong demand in the Pacific Northwest, where supplies of premium-grade CO2 remain tight. Maintenance completed during the first quarter is also expected to improve plant reliability and support growing customer demand during the summer season.
The bigger opportunity, however, lies at Alto Ingredients' Pekin campus. Selling more liquid CO2 could increase revenues, while capturing or storing CO2 emissions could reduce the carbon intensity of its fuel production. That, in turn, could help Alto Ingredients qualify for greater benefits under the Section 45Z clean fuel tax credit program.
Management also noted that changing market conditions and evolving policy support have opened up more flexible options than before. Instead of developing a carbon capture solution entirely on its own, Alto Ingredients is evaluating opportunities with other parties that could lower capital investment requirements. The company's ongoing efforts reflect its focus on creating more value from the biogenic CO2.
What Do the Latest Metrics Say About Alto Ingredients?
Alto Ingredients, which competes with Green Plains Inc. (GPRE - Free Report) and MGP Ingredients, Inc. (MGPI - Free Report) , has seen its shares rally 351.3% in the past year compared with the industry’s 5.5% growth. Shares of Green Plains have risen 150.3%, while MGP Ingredients has declined 42.8% during the same period.
Image Source: Zacks Investment Research
From a valuation standpoint, Alto Ingredients’ forward price-to-sales ratio of 0.4 is lower than the industry’s average of 3.11. The company is trading at a discount to Green Plains (with a forward price-to-sales ratio of 0.53) and MGP Ingredients (0.73)
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Alto Ingredients’ 2026 and 2027 earnings per share implies a year-over-year rise of 671.4% and 53.7%, respectively.
Image Source: Zacks Investment Research
Alto Ingredients currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.