Gevo, Inc. (NASDAQ: GEVO)
Gevo is having an incredibly strong day in the market today. When the opening bell rang, the stock found itself well in the green. While it has corrected a bit from opening highs, the stock is still sitting on incredibly impressive gains. Below, we’ll talk about what we’re seeing from GEVO, why, and what the CNA Finance team will be watching with regard to the stock ahead.
What We’re Seeing From GEVO
As mentioned above, Gevo is having a great day in the market so far. When the trading session opened for the day, the stock was already trading well into the green. From there, it did come off of highs a bit, but the gains are still impressive, and now it seems as though the stock may start inching back upward to highs. Currently (10:44), GEVO is trading at $4.35 per share after a gain of $0.63 per share or 16.93% thus far today.
Why The Stock Is Up
One of our readers tipped us off about this news. As soon as they did, the CNA Finance team started digging to see what was happening. In this particular case, it took us no time at all to dig up the story. It seems as though the GEVO gains are being caused by news announced surrounding the United States Environmental Protection Agency.
According to an announcement made by GEVO early this morning, the EPA has approved the pathway for isobutanol produced at the company’s Luverne, MN production facility to be an advanced biofuel under the Renewable Fuel Standard Program. This is huge news as it marks the first time the EPA has approved a pathway for an advanced biofuel that uses starch from feed corn to produce an alcohol. In a statement, Dr. Patrick Gruber, CEO at Gevo, had the following to offer…
“The new EPA pathway combines the lowest cost carbohydrate feedstock sources with green energy, resulting in advanced fuels with a significant GHG reduction. It is worth noting that this pathway leads to the only advanced biofuel that has potential to significantly lower GHG’s while also generating large amounts of protein for animal feed. In fact, practically all of the protein from the feed corn used gby Gevo is captured and sold for animal feed. This feed corn, which is not used for human consumption, and which is supplied to Gevo in Luverne is what the local farmers are calling “low carbon corn” because of the advanced farming techniques they use to minimize chemical inputs, the low till/no till fields that are building up soil carbons and the high yields that they achieve which minimizes land use. We are pleased that there is now a route for advanced fuels that provides protein that contributes to the food system. We expect that the approval of this pathway will open up new business opportunities for Gevo, while driving sustainable environmental improvements…”
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on GEVO. While the stock has been reeling a bit since the reverse split, things are starting to look up yet again. Nonetheless, we’ll be keeping a close eye on the news and bringing it to you as it breaks!
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