By Chris Wack
Shares of Gevo Inc. rose 38% to $ 7.99 on Thursday after the company said it signed a letter of intent with a subsidiary of Chevron Corp. to jointly invest in the construction and operation of one or more new facilities that would process inedible corn to produce sustainable aviation fuel. .
The company said the new facility will also produce protein and corn oil.
Share volume was 122 million shares at 1 p.m. ET, compared to a 65-day average volume of 7.3 million shares.
Gevo will use its technology to produce sustainable aviation fuel and renewable blending components for motor gasoline to reduce the carbon intensity of its life cycle. In addition to co-investing with Gevo in one or more projects, Chevron would have the right to take about 150 million gallons per year to market its customers.
Gevo also announced Thursday its intention to install a pilot unit for transforming alcohol into hydrocarbons at its plant in Luverne, Minnesota.
The pilot unit is designed to produce market development quantities of sustainable aviation fuel, super renewable gasoline, other renewable fuel products, as well as provide the ability to supply quantities of chemicals for development Steps. Installation is expected to begin in the third quarter of 2022, with start-up demonstration production expected in the following quarter.
Write to Chris Wack at [email protected]