Gevo, Inc (NASDAQ:GEVO) stock rallied about 27% in the regular and after-hours sessions on Tuesday.
What Happened: The surge came as the Englewood, Colorado-based company announced that it had conceptualized new “Net-Zero Projects,” through which it can produce energy-dense liquid hydrocarbons using renewable energy.
Gevo will take energy from wind, renewable natural gas, biogas, and the sun and convert it into energy-dense liquid hydrocarbons, which when burnt in a traditional engine could potentially achieve net-zero greenhouse gas emissions across the entire lifecycle of the fuel.
The company plans to construct the first project at Lake Preston, South Dakota, at the cost of $700 million and has named the facility “Net-Zero 1.”
Why It Matters: Gevo would be taking carbon from the atmosphere as well as crops to manufacture the fuel, which when burned will add the same amount of carbon back into the atmosphere, thus achieving a net-zero emission.
Net-Zero 1 will have the capacity to produce 45MGPY of hydrocarbons and 350 million pounds per year of high protein feed products and will utilize wind energy for production.
“Our Net-Zero 1 Project isn’t just about capturing renewable energy and carbon, and transforming it into liquid renewable energy; it’s also about generating enormous quantities of protein, and nutrition for the food chain,” said Gevo CEO Patrick R. Gruber.
Gevo is working with Citigroup Inc (NYSE:C) to get Net-Zero 1 financed.
Price Action: Gevo stock closed 20% higher on Tuesday at $6.06 and surged another 7% in the after-hours session at $6.45.
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