Gevo Inc (NASDAQ:GEVO) shares are trading higher Thursday after the company announced it received a conditional commitment from the U.S. Department of Energy (DOE).
What Happened: Gevo announced that it received a conditional commitment for a loan guarantee from the DOE's Loan Programs Office, with disbursements totaling $1.46 billion. The commitment is related to the construction of the company's Net-Zero 1 project (NZ1) in South Dakota.
The DOE loan facility has a borrowing capacity of $1.63 billion, including capitalized interest during construction.
Gevo's NZ1 facility is designed to produce approximately 60 million gallons of sustainable aviation fuel (SAF), approximately 1.3 billion pounds of protein and animal feed products and approximately 30 million pounds of corn oil per year. The facility is expected to yield SAF with a net-zero carbon footprint on a lifecycle basis.
"This marks a watershed moment for the Net-Zero 1 project and a critical step forward in Gevo's mission to transform the aviation industry by providing a scalable, sustainable, and economical renewable-carbon-based jet fuel—SAF," Patrick Gruber, CEO of Gevo.
"This valuable commitment to help finance NZ1, if finalized, should also attract other capital investments to unlock SAF commercialization given the robust due diligence conducted by the agency."
The project design and operating model is expected to serve as a template for future Gevo net-zero projects. The company said it plans to track and verify the sustainability and carbon intensity of its products through subsidiary Verity Holdings.
How To Buy GEVO Stock
By now you're likely curious about how to participate in the market for Gevo – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy "fractional shares," which allows you to own portions of stock without buying an entire share. In the case of Gevo, which is trading at $2.25 as of publishing time, $100 would buy you 44.44 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to "go short" a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
GEVO Price Action: Gevo shares were up 33.3% at $3.00 at the time of publication Thursday, according to Benzinga Pro.
Photo: Pixabay.
