Gevo (NASDAQ:GEVO) stock is surging higher on Tuesday thanks to a massive renewable fuel supply agreement with Kolmar Americas.
According to a press release, the deal will have Gevo providing Kolmar Americas with 45 million gallons of renewable, energy-dense liquid hydrocarbons. The company notes this is the largest supply agreement for renewable fuels that it’s signed to date.
Gevo points out that the deal is set to span over eight years and will generate an estimated $2.8 billion in gross revenue. This has it expecting revenue of $350 million per year from renewable fuels and other products in the food chain.
Dr. Patrick Gruber, CEO of GEVO, said the following in the news release boosting the company’s stock higher today.
“With this agreement, Kolmar is investing in the future, and this kind of foresight makes for another excellent partner and should make clear to our investors that we have traction in the market.”
Gevo notes that the agreement with Kolmar Americas is subject to certain conditions. As such, it has filed a Form 8-K with the U.S. Securities and Exchange Commission (SEC).
With the news of the renewable fuel supply deal comes heavy trading of GEVO stock. As a result, some 32 million shares of the stock are on the move as of this writing. That’s well above the company’s daily average trading volume of about 11.4 million shares.
GEVO stock is up 8.4% as of Tuesday afternoon and is up 29.1% since the start of the year.
Investors hungry for more stock market news are in the right place!
We’ve got all the latest stock coverage for traders to sink their teeth into today. That includes the latest news concerning ContextLogic (NASDAQ:WISH) stock, why the stock market is up today, as well as details on Intel (NASDAQ:INTC) subsidiary Mobileye going public. You can get all of those details from the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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