Gevo Shares Rise 38% After Aviation Fuel Investment Plan With Chevron
10 September 2021 - 03:37AM
Dow Jones News
By Chris Wack
Gevo Inc. shares were up 38% to $7.99 Thursday after the company
said it signed a letter of intent with a subsidiary of Chevron
Corp. to jointly invest in building and operating one or more new
facilities that would process inedible corn to produce sustainable
aviation fuel.
The company said the new facilities would also produce proteins
and corn oil.
Volume for the stock was 122 million shares at 1 p.m. ET,
compared with 65-day average volume of 7.3 million shares.
Gevo will use its technology to produce sustainable aviation
fuel and renewable blending components for motor gasoline to lower
its lifecycle carbon intensity. In addition to co-investing with
Gevo in one or more projects, Chevron would have the right to
offtake about 150 million gallons a year to market to
customers.
Gevo also said Thursday it plans to install an
alcohol-to-hydrocarbon process pilot unit at its facility located
in Luverne, Minn.
The pilot unit is being designed to produce market development
quantities of sustainable aviation fuel, renewable premium
gasoline, other renewable fuel products, as well as provide
capability to supply market development quantities of chemical
products. The installation is estimated to begin in the third
quarter of 2022, with startup demonstration production expected in
the following quarter.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
September 09, 2021 13:22 ET (17:22 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
Chevron (NYSE:CVX)
Historical Stock Chart
From Feb 2024 to Mar 2024
Chevron (NYSE:CVX)
Historical Stock Chart
From Mar 2023 to Mar 2024