Futu News on October 17th, renewable chemicals and biofuel companies $Gevo Inc (GEVO.US)$ Today's pre-market trading is on the rise. As of the time of publication, the stock is up 38.22%, trading at $3.11, with pre-market trading volume reaching $1.8183 million.

On the news front, Gevo Inc announced yesterday that its 'Net Zero 1' project (NZ1) in South Dakota has received a conditional loan guarantee commitment totaling $1.46 billion from the US Department of Energy's Loan Programs Office (LPO). The loan guarantee commitment does not include capitalized interest during construction, but if capitalized interest during construction is included, the borrowing capacity of this DOE loan tool reaches $1.63 billion.

It is important to note that although this commitment indicates the US Department of Energy's intention to provide financing for the NZ1 project, before the Department of Energy signs the final financing documents and provides loan guarantees, the Department of Energy and the company must meet certain technical, legal, environmental, business, and financial conditions.

NZ1 is the first large-scale Alcohol-to-Jet (ATJ) project to receive a conditional commitment from the US Department of Energy's loan program office, expected to provide significant opportunities for workers, farmers, and residents in South Dakota. Gevo's proprietary ATJ plant is designed to have the lowest carbon emissions cost per ton among all current sustainable aviation fuel (SAF) production technologies.

Gevo Inc CEO Patrick Gruber said:

"This is a significant milestone for the NZ1 project, as well as a key step for Gevo in fulfilling its mission of reforming the aviation industry by providing scalable, sustainable, and economical renewable carbon-based jet fuel - sustainable aviation fuel (SAF). If finalized, this valuable financing commitment not only helps fund the NZ1 project, but may also attract other capital investments to drive the commercialization process of SAF. The thorough due diligence conducted by the US Department of Energy greatly reduces the project's execution risk. We are very grateful for the support of the Department of Energy's loan program office."

According to the latest report from Charles River Associates, the NZ1 project is expected to generate significant economic and climate benefits. Specifically, the factory is expected to create over 1,300 indirect jobs during the construction phase and provide 100 permanent jobs at the factory itself. Additionally, it will create hundreds of local indirect job opportunities in agriculture, manufacturing, and transportation sectors, generating over $0.1 billion in economic benefits annually.

About the company

Gevo inc is a renewable chemicals and biofuels company focused on developing and commercializing isobutanol produced from renewable feedstocks in the United States to replace petrochemical products.

It is worth mentioning that according to Futu News, there are many instances of small market cap US stocks experiencing significant volatility due to the absence of price limits, posing higher risks for investors who should therefore be cautious.