Gevo, Inc. (NASDAQ: GEVO) is having a great day in the market thus far today, and for good reason. The company announced that its isobutanol is now ready for licensing. Of course, this led to excitement among investors, prompting gains in the stock and leading to an alert from our partners at Trade Ideas. At the moment (10:03), GEVO is trading at $0.79 per share after a gain of $0.07 per share (9.03%) thus far today.
GEVO Announces Isobutanol Licensing Availability
As mentioned above, Gevo is having an incredibly strong day in the market today after a key announcement that was made at the BIO World Congress on Industrial Biotechnology in Montreal, Canada. Praj and Gevo jointly announced that isobutanol technology will now be available for licensing to processors of sugar cane juice and molasses.
In the Gevo’s technology using sugar cane and molasses feedstocks. This led to the development and process design package that is now available for commercialization of cane juice and molasses-based ethanol plants. It is expected that this licensing will be focused on Praj plants that are located in India, South America, and Southeast Asia. The initial capacity under the agreement is targeted to come online between 2019 and 2020. In a statement, Dr. Patrick Gruber, CEO at GEVO, had the following to offer:
“We are pleased with the work that Praj has done in adapting our technology using cane juice and molasses as feedstocks. Praj is a great partner who shares our vision of low carbon fuels made from sugars in high yields. Praj has a massive footprint across the world. We look forward to working with Praj to license the technology out, leveraging their access and capabilities…”
The above statement was followed up by Pramod Choudhari, Executive Chairman at Praj. Here’s what he had to say:
“We are excited to offer this technology to our global customers who stand to benefit from an additional revenue stream from isobutanol. Praj has worked on 750 projects for ethanol plants across 75 countries. This isobutanol platform can be offered as ‘bolt-on’ to an existing ethanol plant or as a greenfield plant. This isobutanol technology is the latest addition to Praj’s diverse product portfolio and reinforces our organization’s leadership in the bioenergy space.”
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on GEVO. In particular, we’re interested in watching to see how the agreement with Praj turns into revenue and profits as the isobutanol technology is licensed out. We’ll continue to follow the story closely and bring the news to you as it breaks!
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