Gevo, Inc. (NASDAQ: GEVO) is engaged as a chemicals and renewable energy company. The company is focused on developing technologies to transform renewable energy into energy-dense liquid hydrocarbons, as an alternative to gasoline, jet fuel, and diesel. Shares of the renewable fuel company are climbing 35% through afternoon trading on Thursday, September 9, 2021. Over the past three months, Gevo has seen average daily volume of 7.40 million shares. However, volume if 143.51 million shares or dollar volume of $1.13 billion, has already exchanged hands through early trading Thursday.
Shares of Gevo are rallying after the company announced it has entered into a letter of intent with Chevron Corporation (NYSE: CVX), to joint invest and develop facilities to produce sustainable aviation fuel. The collaboration will focus on processing inedible corn to develop a sustainable fuel alternative to jet fuel, thus lowering the lifecycle of carbon fuel insensity for the airline industry.
As part of the collaboration, the two companies will work to build and operate one or more processing facilities. Gevo would be tasked with utilizing its proprietary technology to produce the alternative corn-based fuel. Aside from a co-investment, Chevron will have the right to take up to 150 million gallons of the sustainable fuel per year to market to its customer base. The deal is still pending final, definitive agreements, as well as regulatory approval.
“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,” commented Dr. Patrick Gruber, chief executive officer of Gevo.
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