Gevo Rises on Deal to Supply Renewable Jet Fuel to Lufthansaby
Airline to buy 8 million gallons a year for five years
Renewable jet fuel to be produced at new Gevo facility
Gevo Inc. climbed the most in a month after agreeing to supply renewable jet fuel to Deutsche Lufthansa AG.
Gevo rose 19 percent to 70 cents at the close in New York, the most since Aug. 3.
The German air carrier agreed to buy as much as 8 million gallons (30 million liters) a year over five years at a price that will allow Gevo to build out its first commercial-scale hydrocarbon plant in Minnesota, the Englewood, Colorado-based biofuel developer said in a statement Wednesday.
Gevo uses corn and plant waste to make isobutanol, which can be converted into hydrocarbon fuels. It has been producing and selling its alcohol-to-jet fuel since 2011 in an effort to help airlines reduce their carbon emissions and control fuel costs, the company said on its website. A final, binding off-take agreement with Lufthansa will be signed in the next few months, Gevo said.