Gevo Inc (NASDAQ: GEVO), a leading biofuels manufacturer centered around renewable, zero-emission energy, announced today its largest renewable deal to date, sending Gevo stock soaring over 10%.
Clean energy is witnessing incredible amounts of investment as economies start to favor green initiatives, innovators appear out of the woodwork, and clean energy infrastructure starts to become more feasible. Gevo’s partnership is with Kolmar Americas, for the financeable fuel supply of 45M gallons per year of renewable, energy-dense liquid hydrocarbons, produced from Gevo’s Net-Zero 2 facility.
Critically for Gevo, the partnership acts as a powerful link to global movements rather than more localized, allowing a diverse client base and a growing international presence. Kolmer will be provided with sustainable aviation fuel and isooctane, a vital part of renewable premium gasoline.
Gevo is expecting to supply 45MGPY of renewable fuels to Kolmar from Net-Zero 2. Under the agreement, Net-Zero 2 is expected to generate around $300M in gross revenue. Over the eight years discussed in the agreement, Gevo’s Net-Zero 2 will create roughly $2.8B in gross revenue.
Dr. Patrick R. Gruber, Gevo CEO, expresses his excitement:
“With this agreement, Kolmar is investing in the future, and this kind of foresight makes for another excellent partner and should make clear to our investors that we have traction in the market,”
“We have great potential in our business system to reinvent what is possible. Our system translates well because we actively address food security with the high-value nutritional products that our process generates simultaneously as we produce our advanced renewable fuels.”
GEVO stock is currently trading with a daily gain of 6.2%, pushing up towards the $6 level at a price of $5.4 at the time of writing.