REX American Resources Corporation (NYSE: REX) operates primarily in the alternative energy sector, focusing on the production and sale of ethanol in the United States. Originally established in 1984 as a retail operator of consumer electronics and appliance stores (under the name REX Stores Corporation), the company began investing in ethanol production in 2006 and eventually divested its retail operations entirely to focus on renewable energy. Today, REX holds majority ownership interests in two major ethanol production facilities: One Earth Energy, LLC in Gibson City, Illinois, and NuGen Energy, LLC in Marion, South Dakota. It also holds equity investments in other ethanol entities, such as Big River Resources, LLC. The company's revenue is predominantly generated from the sale of ethanol, which is blended with gasoline to meet renewable fuel standards. In addition to ethanol, REX derives significant revenue from the sale of valuable co-products generated during the ethanol production process, including dry distillers grains with solubles (used as protein-rich animal feed) and non-food grade corn oil (used in animal feed and biodiesel production). The company also markets natural gas and gasoline. Recently, REX has been actively investing in carbon capture and sequestration (CCS) projects at its One Earth Energy plant, aiming to capture and store carbon dioxide emissions to reduce its carbon footprint and capitalize on clean fuel production tax credits. The company's competitive position is supported by its strategically located facilities near abundant corn supplies and its debt-free balance sheet, allowing it to navigate the volatile commodity price environment of corn and ethanol.
