Gevo Soars Over 70% Amid Deal With Alaska Air

Shares of Gevo, Inc. GEVO rocketed over 70 percent Thursday following news of a strategic alliance with Alaska Air Group, Inc. ALK.

Alaska Airlines will purchase Gevo's renewable jet fuel and fly the first-ever commercial flight on alcohol-to-jet fuel (ATJ), according to a press release.

Gevo says that its patented ATJ is a clean burning, homegrown, drop-in jet fuel, which has the potential to deliver aviation biofuels at scale and at competitive cost.

Joe Sprague, senior vice president of external relations at Alaska Airlines stated, "Developing a domestic, competitively priced, sustainable supply of biofuels is fundamental to the future of American aviation. The cost of fossil-based jet fuel is one of the largest expenses for airlines. This investment in Gevo's ATJ will help reduce our exposure to high fuel prices, minimize our carbon footprint and demonstrate growing demand for fuel alternatives."

After the market open on Thursday, Gevo traded at $4.30, up 74.9 percent.