Gevo (NASDAQ:GEVO) stock is taking off on Monday after the company revealed a fuel deal with airline organization Oneworld Alliance.
According to a press release, certain members of Oneworld Alliance plan to purchase as much as 200 million gallons of fuel per year. Gevo says it expects deliveries to start in 2027 and last for five years.
Gevo provides airlines with sustainable aviation fuel (SAF) and several companies are interested in it. Among the Oneworld Alliance members that want to switch to SAF are Alaska Airlines (NYSE:ALK), American Airlines (NASDAQ:AAL), British Airways, Finnair (OTCMKTS:FNNNF), Japan Airlines (OTCMKTS:JAPSY), and Qatar Airways. This will have the fuel available at San Diego, San Francisco, San Jose, and Los Angeles International Airports.
So how much can Gevo expect to bring in from this deal! The company is expecting total revenue over the five-year period to reach $800 million. The SAF in the deal will be made from corn products turned into ethanol, which will then be converted into SAF.
Dr. Patrick R. Gruber, CEO of Gevo, said the following about the news boosting the company’s stock today.
“When oneworld member airlines show they understand the importance of reducing fossil-carbon greenhouse gas emissions, they start making real change in the industry. Eliminating fossil-based emissions from the life-cycle of jet fuel is our mission. Net-Zero SAF is what we all want. I’m pleased that oneworld is on board.”
GEVO stock is up 6.2% as of Monday morning.
Investors on the lookout for the latest stock market news are in luck!
InvestorPlace has all the most recent stock market coverage that traders need to know about for Monday! A few examples include what’s happening with shares of Imperial Petroleum (NASDAQ:IMPP) stock, Vinco Ventures (NASDAQ:BBIG) stock, and Alleghany (NYSE:Y) stock. You can find all of this news at the following links!
More Stock Market News for Monday
- Why Is Imperial Petroleum (IMPP) Stock Down Today?
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- Why Is Alleghany Corporation (Y) Stock Up Today?
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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