Gevo, Inc. (NASDAQ:GEVO) saw a nice bump in action yesterday and though the company has lost a little ground today, the stock is still worthy of interest. GEVO saw a bump yesterday after U.S. Energy Secretary Rick Perry made a key announcement on biofuels.
Perry announced that the Department of Energy (DOE) has selected 8 projects to negotiate for up to $15 million in total DOE funding. The funding is aimed at optimizing integrated biorefineries. GEVO is speculated to be one of the companies that will soon be named.
Gevo, Inc. (NASDAQ:GEVO) bills itself as a renewable chemicals and biofuels company that focuses on the development and commercialization of alternatives to petroleum-based products based on isobutanol produced from renewable feedstocks.
It operates in two segments, Gevo, Inc. and Gevo Development/Agri-Energy. The company engages in the research and development, and production of isobutanol; development of its proprietary biocatalysts; production and sale of biojet fuel; and retrofit process of chemicals and biofuels. It is also involved in the production of ethanol, isobutanol, and related products.
Gevo, Inc. produces and separates its renewable isobutanol through the Gevo Integrated Fermentation Technology platform. The company was formerly known as Methanotech, Inc. and changed its name to Gevo, Inc. in March 2006.
According to the company’s press materials, “Gevo is a leading renewable technology, chemical products, and next generation biofuels company. Gevo has developed proprietary technology that uses a combination of synthetic biology, metabolic engineering, chemistry and chemical engineering to focus primarily on the production of isobutanol, as well as related products from renewable feedstocks. Gevo’s strategy is to commercialize bio-based alternatives to petroleum-based products to allow for the optimization of fermentation facilities’ assets, with the ultimate goal of maximizing cash flows from the operation of those assets. Gevo produces isobutanol, ethanol and high-value animal feed at its fermentation plant in Luverne, Minnesota. GEVO has also developed technology to produce hydrocarbon products from renewable alcohols. Gevo currently operates a biorefinery in Silsbee, Texas, in collaboration with South Hampton Resources Inc., to produce renewable jet fuel, octane, and ingredients for plastics like polyester. Gevo has a marquee list of partners including The Coca-Cola Company, Toray Industries Inc. and Total SA, among others. Gevo is committed to a sustainable bio-based economy that meets society’s needs for plentiful food and clean air and water.”
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Ultimately, the DOE’s goal is to solve critical research and development challenges encountered for successful scale-up and reliable operation of integrated biorefinaries. It is expected that through this research, capital expenses and operating expenses will be decreased surrounding the production of biofuels. In a statement, Rick Perry had the following to offer:
“The Integrated Biorefinery Optimization effort is a prime example of how the Department of Energy can leverage its resources to help solve real-world issues facing biorefineries… These projects have the potential to increase the efficiency of producing biofuels and bioproducts, enabling the United States to better utilize its abundant biomass resources, boost economic development, and advance U.S. competitiveness in the global energy market.”
To be clear, Gevo, Inc. (NASDAQ:GEVO) has not been named but is expected to be receiving some money. This company has already been profitable in the past and could take further strides with some government backing clearing the way. For continuing coverage on shares of $GEVO stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!
Disclosure: We hold no position in $GEVO, either long or short, and we have not been compensated for this article.