Sign up USA
Proactive Investors - Run By Investors For Investors

Gevo shares explode after EPA gives go-ahead for higher isobutanol level in blended gasoline

The EPA is now allowing the ethanol-free gas additive isobutanol at a 16% blend level in gas
Diesel gas tank
The biofuel company's stock has risen about fourfold since the announcement

Shares of the biofuel group Gevo Inc (NASDAQ:GEVO) are soaring today after the Environmental Protection Agency (EPA) approved the ethanol-free gasoline additive isobutanol at a 16% blend level in gas for on-road use in automobiles.

Previous to this change, the EPA signed off on isobutanol for on-road use up to just a 12.5% blend.

Optimistic about the announcement, investors drove up Gevo shares nearly fourfold to US$12.70 Monday and the rally continues, adding another 18% to US$15 in extended trade.

“At Gevo, we have been developing the markets for isobutanol containing gasoline, in particular to meet the demand for the ethanol-free segment of the gasoline market. A 16% blend option will give our customers and partners an even better product for on-road use,” said Gevo CEO, Patrick Gruber.

The EPA gave the go-ahead for the higher level of isobutanol in response to a request from Butamax Advanced Biofuels LLC, another biofuels group, based in Delaware, which is a joint venture between DuPont and BP Plc.

The market size for ethanol-free gasoline is estimated to be as much as 7bln gallons per year, according to the Colorado-based Gevo.

View full GEVO profile View Profile

Gevo Timeline

Related Articles

Cleaning products
August 05 2018
Most of the polymer maker's activities will be consolidated into its US operations, improving the link between product support and manufacturing
Haydale
September 25 2018
Haydale said its overall progress in 2018 was "solid".
Copyright © Proactiveinvestors.com, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use