Biofuels developer Gevo Inc. (NASDAQ: GEVO) made its 2011 trading debut this morning after pricing at the high end of its IPO range. After the initial public offering, GEVO shares jumped over 11% midway through Wednesday after setting an IPO price of $15. Gevo sold 7.2 million shares at the $15 price range. The early interest in GEVO shares is good news for green energy investors, and particularly for the biofuels sector.

In recent years, there’s been a dearth of biofuel sector IPOs. The one that did make it to the trading floor last year was Codexis, Inc. (NASDAQ: CDXS), but that stock has plunged more than 20% since its exchange debut in April 2010.

Now, if you haven’t heard of Gevo, don’t worry, you’re not alone. The company isn’t exactly a household name. It does, however, have an interesting focus. Gevo plans to make and sell an alcohol derivative called isobutanol. This is an alcohol made out of renewable materials such as grains and cellulose plant material. Gevo is betting that isobutanol can be used as a replacement for petroleum-based products such as fuel or plastics.

The Colorado-based Gevo is still at the very early stages of development with isobutanol production. In fact, it hasn’t even retrofitted existing ethanol plants where it plans to make this new petroleum alternative. To date, the company hasn’t seen a dime of revenue from isobutanol, nor has the company ever made a profit. These facts make the interest in GEVO shares even more interesting.

Although the company lacks any fiscal heft, it has signed preliminary agreements and is negotiating several definitive agreements with potential customers and partners. These partners include privately held petrochemical giant Total Petrochemicals USA and United Air Lines (NYSE: UAL).

As oil prices continue to rising, investors may once again be looking for biofuel alternatives to help fuel their portfolio. That makes GEVO a stock to watch going forward.

Jim Woods held no positions in any of the stocks mentioned in this article.