Gevo Inc GEVO is trading significantly higher Thursday after the company, and Chevron Corp CVX, announced a letter of intent to jointly invest in building and operating one or more new facilities that would process inedible corn to produce sustainable aviation fuel.
Sustainable aviation fuel has the potential to lower the lifecycle carbon intensity of fuels used in the aviation industry.
The companies noted that the new facilities would also produce proteins and corn oil.
“We are pleased to collaborate with Chevron, who is willing to co-invest in building out Gevo's capacity to produce renewable, high-performing hydrocarbons that can be used in existing equipment and engines. Chevron’s advantaged market position would allow it to offtake production from this venture, helping to place sustainable aviation fuel with airline customers,” said Patrick Gruber, CEO of Gevo.
Gevo is a renewable chemicals and biofuels company engaged in the development and commercialization of alternatives to petroleum-based products based on isobutanol produced from renewable feedstocks.
Gevo has a market cap of about $1.14 billion, according to data from Benzinga Pro.
GEVO Price Action: Gevo has traded as high as $15.57 and as low as 77 cents over a 52-week period.
The stock was up 34.40% at $7.78 at time of publication.
Photo: IADE-Michoko from Pixabay.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
