Gevo and Axens form alliance to boost sustainable aviation fuel

ENGLEWOOD, Colo. - Gevo , Inc. (NASDAQ: NASDAQ:GEVO) and Axens have announced a strategic alliance aimed at propelling the development and commercialization of sustainable aviation fuel (SAF) through the ethanol-to-jet (ETJ) technology pathway. The partnership is set to combine Gevo’s patented ethanol-to-olefins (ETO) process and Axens’ Jetanol™ technology, which together are anticipated to yield a more cost-effective and commercially viable SAF. According to InvestingPro data, Gevo maintains a strong liquidity position with a current ratio of 8.25 and holds more cash than debt on its balance sheet, providing financial flexibility for this strategic initiative.

The collaboration seeks to merge the strengths of both companies, including technology, experience, and system integration, to enhance the ETJ space. Gevo’s Chief Business Officer, Dr. Paul Bloom, highlighted the alliance’s potential to deliver SAF that could compete with fossil fuels economically while tapping into the burgeoning carbon market. While the company’s gross profit margin stands at -149.5% for the last twelve months, InvestingPro analysis reveals 12 additional key insights about Gevo’s financial health and market position.

The partnership builds on the previous successful commercial cooperation between the two companies and involves working with IFPEN for the final development and commercial deployment of Gevo’s next-generation ETO technology. This technology is expected to produce light olefins from ethanol, which can then be transformed into transportation fuels using existing technologies. Gevo is set to lead the deployment of this technology in North America, focusing on job creation and rural economic development. Axens will offer global process licensing, catalyst, equipment, and engineering services.

Quentin Debuisschert, CEO of Axens, expressed confidence in the alliance’s potential to drive the fast acceptance and adoption of the ETJ Pathway. Dr. Pat Gruber, CEO of Gevo, also emphasized the alliance’s role in reducing production and capital costs, which could lead to job creation, rural economic development, and incentivization of regenerative agriculture.

Gevo, a diversified energy company, is known for its renewable natural gas (RNG) facilities and the world’s first specialty alcohol-to-jet (ATJ) fuels and chemicals production facility. The company’s commitment to sustainability extends to its subsidiary Verity, which focuses on supply chain transparency and verification. With a market capitalization of $404.57 million and revenue of $15.59 million in the last twelve months, the company has shown revenue growth of 16.59%. Investors seeking deeper insights can access Gevo’s comprehensive Pro Research Report, available exclusively on InvestingPro, which includes detailed analysis of the company’s growth prospects and market position.

Axens Group offers a wide range of solutions for cleaner fuel production, petrochemical intermediates, chemical recycling of plastics, natural gas treatment, and carbon capture and storage.

This strategic alliance is based on a press release statement and contains forward-looking statements which are subject to risks and uncertainties. The actual outcomes may differ materially from those projected in the forward-looking statements.

In other recent news, Gevo, Inc. has been making significant strides in its operations. The company recently completed the acquisition of Red Trail Energy for $210 million, a strategic move that adds a 65 million gallon per year ethanol production facility to its portfolio. The acquisition, now renamed Net-Zero North, is aligned with Gevo’s focus on sustainable energy production and carbon sequestration. Analyst Amit Dayal from H.C. Wainwright maintains a Buy rating and a $14.00 price target on Gevo’s shares, reflecting confidence in the company’s direction and growth potential.

In another development, Gevo and South Korea-based LG Chem Ltd. have extended their joint development agreement to expedite the commercialization of Gevo’s proprietary Ethanol-to-Olefins (ETO) technology. This technology is designed to produce carbon-neutral or carbon-negative olefins, renewable building blocks for various fuels and chemicals, including sustainable aviation fuel and bio-propylene.

In addition to these developments, Gevo has surpassed its annual target rate of renewable natural gas (RNG) production as of the third quarter of 2024 and initiated the commercialization of its Verity tracking system. These recent developments reflect Gevo’s commitment to sustainability and strategic growth.

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