Gevo Inc. (GEVO – Free Report) recently announced its new partnership with Axens to develop and commercialize sustainable aviation fuel (“SAF”) by using ethanol-to-jet (“ETJ”) pathway. This alliance brings together Axens’ best-in-class and commercialized Jetanol technology and GEVO’s process and business system. The companies are also combining their technical resources to accelerate the rollout of GEVO’s patented, next-generation ethanol-to-olefins (“ETO”) technology.
Combined real-world experience, substantially de-risked technologies, plant integrations and pre-engineered systems in the ETJ space will enable delivering the most cost-effective, commercially proven SAF technology. The commercialization through this alliance will reduce costs and create SAF that is competitive with fossil fuels while capitalizing on the growing carbon market. GEVO’s ETO technology produces light olefins from ethanol, which can be converted to transportation fuels utilizing commercially proven oligomerization and hydrogenation technologies.
GEVO has previously been successful in a commercial cooperation setup with Axens. The expanded partnership ensures both companies remain leaders in the ETJ space by collaborating with IFPEN on the final development and commercial deployment of the ETO process for fuel applications that are expected to achieve zero carbon intensity or better. This alliance is also expected to bring success by leading ETO technology deployment in North America.
This move will not just lead the future of air-travel decarbonization but also create large numbers of jobs, spur rural economic development and create clear, market-based incentives for regenerative agriculture through the reduction of production and capital costs.
The GEVO stock has gained 96.6% in the past year compared with the 74.5% growth of the industry.
Image Source: Zacks Investment Research
GEVO’s Zacks Rank and Key Picks
GEVO currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Oils and Energy space are National Fuel Gas Company (NFG – Free Report) , CNX Resources Corporation (CNX – Free Report) and Clearway Energy, Inc. (CWEN – Free Report) . While NFG sports a Zacks Rank #1 (Strong Buy), while CNX and CWEN carries a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NFG’s current-year earnings is pegged at $6.64 per share. NFG beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average earnings surprise being 8.3%. Its shares have gained 50.5% in the past year.
The Zacks Consensus Estimate for CNX’s current-year earnings is pegged at $2.36 per share. CNX surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average earnings surprise of 29.8%. Its shares have gained 51.4% in the past year.
The Zacks Consensus Estimate for CWEN’s current year earnings is pegged at 83 cents per share. Its shares have gained 8.8% in the past year.
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