Gevo, Inc. (NASDAQ: GEVO) is having an overwhelingly strong start to the trading session this morning after releasing news surrounding its isobutanol. Of course, the news was positive, leading to excitement among investors and sending the stock on a run for the top. Today, we’ll talk about:
- The news;
- what we’re seeing from GEVO as a result; and
- what we’ll be watching for ahead.
GEVO Announces EPA News Surrounding Isobutanol
As mentioned above, Gevo is having an incredibly strong start to the trading session this morning after announcing news surrounding its isobutanol. In a press release issued early this morning, the company announced that the United States Environmnetal Protection Agency (EPA) has approved isobutanol at a 16% blend level in gasoline for on-road use in automobiles. Previously, isobutanol had been approved for on road use at up to a 12.5% blend. In a statement, Patrick Gruber, CEO at GEVO, had the following to offer:
Blends of isobutanol at a 16% level have previously been used for boats and off-road applications. We congratulate Butamax in getting this registration done. We all benefit. 16% blend levels allow more RINS per gallon, high octane, and many other benefits. At Gevo we have been developing the markets for isobutanol containing gasoline, in particular to meet the demand for the “ethanol free” segment of the gasoline market. A 16% blend option will give our customers and partners an option for an even better product for on-road use.
What We’re Seeing From The Stock
With the news that the EPA has approved a higher level blend of the company’s isobutanol in gasoline for on-road use, Gevo now has a strong opportunity to improve revenue from the sale of its products. So, it’s no surprise that investors are excited, sending the stock on a run for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:55), GEVO is trading at $4.53 per share after a gain of $1.02 per share or 29.06% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on GEVO. In particular, we’re interested in following the story surrounding the ongoing work to further commercialize isobutanol as well as their moves now that yet another blend of isobutanol gasoline has been approved. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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