By Chris Wack

 

Gevo Inc. shares were up 38% to $7.99 Thursday after the company said it signed a letter of intent with a subsidiary of Chevron Corp. to jointly invest in building and operating one or more new facilities that would process inedible corn to produce sustainable aviation fuel.

The company said the new facilities would also produce proteins and corn oil.

Volume for the stock was 122 million shares at 1 p.m. ET, compared with 65-day average volume of 7.3 million shares.

Gevo will use its technology to produce sustainable aviation fuel and renewable blending components for motor gasoline to lower its lifecycle carbon intensity. In addition to co-investing with Gevo in one or more projects, Chevron would have the right to offtake about 150 million gallons a year to market to customers.

Gevo also said Thursday it plans to install an alcohol-to-hydrocarbon process pilot unit at its facility located in Luverne, Minn.

The pilot unit is being designed to produce market development quantities of sustainable aviation fuel, renewable premium gasoline, other renewable fuel products, as well as provide capability to supply market development quantities of chemical products. The installation is estimated to begin in the third quarter of 2022, with startup demonstration production expected in the following quarter.

 

Write to Chris Wack at chris.wack@wsj.com

 

(END) Dow Jones Newswires

September 09, 2021 13:22 ET (17:22 GMT)

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