Gevo, Inc. (NASDAQ:GEVO)
Gevo, Inc. (NASDAQ:GEVO) shares gained 0.71% after the renewable energy technology company announced it will partner Los Alamos National Laboratory (LANL) to improve the energy density of some of its hydrocarbon products. The two are also to share ideas on ways to fine tune the composition of the catalysts used in Gevo’s proprietary ETO process.
GEVO Stock Performance
Shares of Gevo continue to trade in a downtrend despite the signing an agreement with LANL. The company faces an uncertain future especially on the stock dropping below $1, a minimum requirement for continued listing in the NASDAQ.
Gevo, Inc. (NASDAQ:GEVO) has been under pressure since the start of the year as seen by the stock losing more than 80% in market value. Investor confidence on the stock is at all-time low. Industry observers are keenly waiting to see if the LANL deal is the catalyst that will help breathe life into the stock.
LANL – GEVO Collaboration
LANL and GEVO are planning to develop a low-cost catalytic technology that is to be integrated into an existing isobutanol-to-hydrocarbons process that reportedly produces high-energy density fuels. HEDFs are currently being used by the U.S military in air and sea-launched cruise missiles.
“Currently, certain HEDFs are supplied by limited suppliers, so the DOD is interested in supporting alternative sources of these fuels, and potentially at a lower cost. The added benefit that this would be a renewable fuel that helps reduce greenhouse gas emissions is just icing on the cake,” said Dr. Patrick Gruber, Gevo’s Chief Executive Officer.
ATJ – Virgin Airlines Deal
Separately, Gevo, Inc. (NASDAQ:GEVO) has inked a deal that paves way for it to start supplying its renewable alcohol-to-jet fuel (ATJ) to the Virgin Australia Group. The airline will be responsible for coordinating purchase, supply, and blending of ATJ into the fuel system at the Brisbane Airport. The Queensland government has already echoed its support for the arrangement which it says is the first step in the development of renewable jet fuel.
Gevo, Inc. (NASDAQ:GEVO) is to supply the ATJ from its hydrocarbon plant in Texas. The company plans to expand its production capabilities at the Luverne Facility to meet the growing demand. Plans are also underway to obtain binding supply contracts for a combination of isobutanol and hydrocarbon products, which should be equal to the expected capacity increase.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.