Gevo hit 18-month high on patent, plant purchase

Gevo Corporation (NASDAQ: GEVO) saw its stock price soar by 30.1% on Tuesday, reaching a new 52-week high of $1.83 fuelled by a newly awarded U.S. patent and the announcement of a $210m acquisition of a carbon capture and sequestration equipped ethanol plant in North Dakota.

The company had recently faced the threat of delisting from Nasdaq due to its share price falling below $1 for an extended period.

However, with the recent positive developments, Gevo is now likely to avoid a reverse stock split to meet the exchange’s minimum bid requirement.

Gevo’s newly granted patent covers a proprietary ethanol-to-olefins process that uses specific catalyst combinations to convert ethanol into olefins.

CEO Patrick Gruber expressed excitement about this breakthrough, stating that it represents a “step-change improvement” in capital cost and energy efficiency for producing biofuels.

In addition to the patent, Gevo announced its agreement to acquire Red Trail Energy’s ethanol production plant and associated carbon capture and sequestration assets in North Dakota.

This acquisition aligns with the company’s strategy of transforming renewable carbon and photosynthetic energy into net-zero liquid transportation fuels and chemicals.