Gevo, Inc. (NASDAQ: GEVO) is having an overwhelmingly strong day in the market today, and for good reason. Yesterday, U.S. Secretary of Energy Rick Perry made a key announcement with regard to biofuels and biorefineries. This led to excitement among investors, causing gains in the value of the stock. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (11:04), GEVO is trading at $0.74 per share after a gain of $0.14 per share (23.14%) thus far today.
GEVO Gains On Department of Energy Moves
As mentioned above, Gevo is having an incredibly strong start to the trading session this morning after an announcement made by Rick Perry, U.S. Secretary of Energy. 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. Ultimately, the 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.”
While the eight companies that are involved in these plans have not been named, there is speculation that GEVO is one of them, and for good reason. After all, Gevo is a company that has made it further along than any other in the biorefinery space. So, it only makes sense that they would be part of this research!
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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 learning more about the funding from the government and whether or not the company is part of these plans. We’re also interested in following the company’s ongoing efforts to scale up and mass market their biofuel. We’ll continue to follow the story closely and bring the news to you as it breaks!
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