Gevo (GEVO) Stock Climbs As Alaska Airlines Adopts Renewable Fuel


Gevo, Inc. (NASDAQ: GEVO)

Gevo is having an incredible day in the market today, and for good reason. The company has been working on renewable jet fuel, and has mastered the craft. Now, it’s been announced that the fuel is being put into action. Today, we’ll talk about the news, how the market is reacting, and what we can expect to see from GEVO moving forward. So, let’s get right to it…

GEVO Renewable Jet Fuel Is Put To Good Use

As mentioned above, Gevo is having a strong day in the market today. For some time now, the company has been working on an alcohol based renewable jet fuel. At this point, the renewable fuel is mastered. However, more importantly, Alaska Air Group, Inc. (NYSE: ALK) has announced that they are going to start using the fuel. The new fuel will not only come with a lower cost for ALK, but it is also environmentally friendly.

Here’s what you should know about the fuel.  The fuel that GEVO has developed is a proprietary technology that combines synthetic biology, metabolic engineering, chemistry, and chemical engineering. The primary focus of the product, or end result, is isobutanol. This isobutanol fuel is derived from renewable feedstocks.

How The Market Reacted To The News

As investors, we know that the news moves the market. Any time positive news is released with regard to a publicly-traded company, we can expect to see gains in the value of the stock associated with that company. Adversely, negative news surrounding a publicly-traded company will generally lead to big losses. The news that was released today with regard to GEVO was overwhelmingly positive. Not only does it validate the company’s work in creating a new, renewable jet fuel, but it will also generate strong revenue, as I would imagine that ALK will be using quite a bit of the fuel. As a result, the stock is climbing in the market today. Currently (10:49), GEVO is trading at $0.49 per share after a gain of $0.09 per share, or 22.29%, thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Gevo. The new deal with Alaskan Airlines is a big one for the company and will likely lead to strong revenue moving forward. However, that’s not the only reason I have such a bullish opinion of what we can expect to see.

At the end of the day, the global opinion with regard to the use of fossil fuels as a way to move things, create energy, and more is changing. Gevo has engineered a great way to use renewable resources in order to create combustible fuels that are strong enough even for airplanes. To me, this is an incredible feat. As the company continues down the path of using renewable resources for day-to-day uses that would generally require fossil fuel, I believe that the company is going to soar!

What Do You Think?

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