Gevo Shares Rise on Biofuel Investment Deal With Prajby
Indian engineering firm will 'invest substantial resources'
Praj clients include 350 ethanol plants in 65 countries
Gevo rose 0.6 percent to $1.72 at the close in New York. The shares increased as much as 14 percent intraday. The Englewood, Colorado-based company said in a statement Monday that Praj had agreed to “invest substantial resources" into developing and licensing Gevo’s biofuels. The amount of the investment wasn’t disclosed.
Gevo makes fuels from corn and non-food crops. Praj will help develop Gevo’s technology to brew biofuels from sugar cane, beets, cassava, rice and other materials and will also market the product to its clients. The Indian company has worked with about 350 ethanol plants in 65 countries, according to the statement.
The two companies reiterated a previously announced plan to license as much as 250 million gallons (947 million liters) of biobutanol capacity over the next ten years. Praj and Gevo will also work to commercialize technology to make renewable jet fuel in India.
“Licensing is expected to be a key growth area for Gevo, and we very much look forward to Praj being one of Gevo’s key partners in rolling out our technology globally," Gevo Chief Executive Officer Patrick Gruber said in the statement.