Gevo, Inc. (NASDAQ:GEVO) had a wild Monday as the company’s stock went gangbusters following some good news from the Environmental Protection Agency (EPA).
The biofuel company’s stock was trending upwards at a rapid rate after the EPA announced that it was raising the amount of isobutanol that is used for on-road use in cars to a 16% blend level. This figure is a considerable improvement from the agency’s previous 12.5% blend level.
The move was brought up for approval after Delaware-based Butamax Advanced Biofuels LLC requested it. The company is a joint venture between BP Plc (ADR) (NYSE:BP) and DowDuPont Inc (NYSE:DWDP) and the request was granted today.
“At Gevo we have been developing the markets for isobutanol containing gasoline, in particular to meet the demand for the ‘ethanol free’ segment of the gasoline market,” Gevo CEO Patrick Gruber said in a statement.
Gevo specializes mostly in renewable technology and biofuels, which includes ethanol.
GEVO shares were up more than 261.82% during regular trading hours Monday and at one point the stock reached an increase of more than 270%. The stock has continued trending upwards after the bell as shares are up about 20.5% after the bell today.