Water Tower Research analysts published an update on Gevo Inc (NASDAQ:GEVO) following the company’s third-quarter 2021 financial results, which were released on November 10.
The analysts noted the next generation ‘low-carbon’ fuel company “has been actively forming new alliances with the intent to further grow and expand the current production process.”
Gevo recently announced that it had signed a memorandum of understanding (MoU) with Archer-Daniels-Midland Company (ADM) to support the production of 500 million gallons of Sustainable Aviation Fuel (SAF) and other renewable hydrocarbons.
READ: Gevo and Sweetwater Energy ink MoU to supply lignocellulosic feedstocks to produce cellulosic alcohols and sustainable aviation fuel
The company also signed a letter of intent (LOI) with Chevron USA Inc to jointly develop one or more facilities to produce SAF from inedible corn.
“The company expects increase in market interest in SAF after the White House announcement in the month of September targeting at least 3 billion gallons of SAF production by 2030 (with 20% lower aviation emissions),” the analysts wrote.
The Water Tower Research analysts also said Gevo’s Net-Zero 1 project is on track after the company announced earlier last month the selection of Kiewit Energy Group Inc to carry out the Front-End Engineering Design (FEED), as well as provide the engineering, procurement & construction services after completion of FEED phase.
Net-Zero 1 is a project devised by Gevo, which involves building a plant to produce energy-dense liquid hydrocarbons using renewable energy and Gevo’s proprietary technology.
The analysts, however, added that Gevo management is optimistic about growth beyond Net-Zero 1.
The full report can be found here.
Gevo is focused on transforming renewable energy and carbon into energy-dense liquid hydrocarbons. These liquid hydrocarbons can be used for drop-in transportation fuels such as gasoline, jet fuel, and diesel fuel, that when burned have the potential to yield net-zero greenhouse gas emissions.
The company is also working on addressing other environmental problems like plastics, and polyesters with its technology.
Contact Sean at sean@proactiveinvestors.com