Movers and SHAKERS
Friday, August 21, 2020
Gevo, Inc. (GEVO)
Supply Portfolio Doubles and Industry Player Added
Gevo Inc is a renewable chemicals and biofuels company engaged in the development and commercialization of alternatives to petroleum-based products based on isobutanol produced from renewable feedstocks. Its operating segments are the Gevo segment and the Gevo Development/Agri-Energy segment. By its segments, it is involved in research and development activities related to the future production of isobutanol, including the development of its biocatalysts, the production and sale of biojet fuel, its Retrofit process and the next generation of chemicals and biofuels that will be based on its isobutanol technology. Gevo Development/Agri-Energy is the key revenue generating segment which involves the operation of the Luverne Facility and production of ethanol, isobutanol and related products.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Largest contract signed to date. Addition of major industry player adds credibility to renewable fuel concept. Yesterday morning, Gevo announced that a supply agreement for 25 million gallons/year (MPGY) was signed with a subsidiaryof Trafigura Group. The contract is the largest in Gevo’s history to date. Not only does the supply portfolio more than double to 42 MPGY, it moves the revenue potential above $1.5 billion. Trafigura’s leading position as a global commodity trader validates the technology and business strategy.
Licensing strategy also moving forward. Earlier, a license agreement with Praj Industries Ltd. was signed to develop renewable transportation fuels in India. The collaboration is driven by carbon emission targets and national strategic goals, including ...
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.