Gevo Stock Rockets 190% on Trafigura Deal

Gevo (NASDAQ:GEVO) stock is on the rise Thursday after announcing a massive deal with Trafigura.

Image of Trafigura logo on smartphone display

Source: Piotr Swat /

According to a Gevo news release, the company’s deal with Trafigura will have it supplying the company with high-octane gasoline and sustainable aviation fuel (SAF). The contract is long-term and is “take or pay” in nature. It’s also the largest contract that Gevo has ever signed.

Gevo says that the deal has Trafigura planning to take 25MPGY of renewable hydrocarbons. The company expects the majority of this to be in the form of low-carbon premium gasoline. It expects a small amount of it to be SAF.

Gevo notes that this new contract with Trafigura pushes its long-term revenue to over $1.5 billion. However, it’s worth noting that this isn’t just from the deal with Trafigura. It also includes the company’s other long-term contracts.

Patrick Gruber, CEO of Gevo, said this about the news pushing GEVO stock higher.

“As drop-in fuels, Gevo’s renewable, very high-octane gasoline and SAF are a perfect fit with Trafigura’s existing fuels business and will allow them to integrate these low-carbon options seamlessly into their supply chains. We expect that our low-carbon fuels will enable certain of Trafigura’s customers to substantially lower their carbon footprint.”

Gevo mentions that the deal requires certain conditions to be met first. That includes Trafigura acquiring a facility to produce hydrocarbon products. It will also need to obtain funding to retrofit the factory. Trafigura is expected to start receiving the products from Gevo in 2023.

GEVO stock was up 189.9% as of Thursday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.

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