Gevo, Inc. (NASDAQ:GEVO) shares jumped over 30% today, partly on rumors that the biofuel maker was selected to collaborate with researchers at the U.S. Department of Energy (DOE) as part of DOE’s integrated biorefinery optimization projects.
Yesterday, the U.S. Secretary of Energy Rick Perry announced that the DOE has selected eight projects to negotiate for up to $15 million in total DOE funding to optimize integrated biorefineries. These projects will work to solve critical research and developmental challenges encountered for the successful scale-up and reliable operations of integrated biorefineries (IBRs), decrease capital and operating expenses, and focus on the manufacture of advanced or cellulosic biofuels and higher-value bioproducts. These investments support the development of bioproducts, a workforce in bioenergy, and help to spur the creation of a sustainable domestic bioeconomy.
This Integrated Biorefinery Optimization funding opportunity is coordinated and supported jointly between DOE’s Bioenergy Technologies Office and the U.S. Department of Agriculture (USDA) National Institute of Food and Agriculture (NIFA)
“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,” said Secretary Perry. “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.”
On the ratings front, H.C. Wainwright analyst Amit Dayal reiterated a Buy rating on GEVO, with a price target of $12, in a recent research note. The current price target implies an upside of 1346% from current levels. According to TipRanks.com, Dayal has a yearly average loss of 2.2%, a 46% success rate, and is ranked #3928 out of 4658 analysts.
Gevo is a renewable chemicals and next generation biofuels company. The company focuses on the development and commercialization of alternatives to petroleum-based products based on isobutanol produced from renewable feedstocks. It operates through the following segments: Gevo, Inc. and Gevo Development & Agri-Energy. The Gevo, Inc. segment is responsible for all research and development activities related to the future production of isobutanol, including the development of its proprietary biocatalysts, the production and sale of biojet fuel, its Retrofit process and the next generation of chemicals and biofuels that will be based on isobutanol technology. The Gevo Development & Agri-Energy segment is currently responsible for the operation of its agri energy facility and the production of ethanol, isobutanol and related products.