Biofuels stock Gevo continues rally, boosted by $1.46 billion Energy Department loan

MW Biofuels stock Gevo continues rally, boosted by $1.46 billion Energy Department loan

By James Rogers

Shares of the renewable-chemicals and biofuels company were up more than 15% Friday

Shares of renewable-chemicals and biofuels company Gevo Inc. continued their rally Friday, lifted by a $1.46 billion loan commitment from the U.S. Energy Department earlier this week.

The stock (GEVO) was up 15.7% on Friday afternoon after ending Thursday's session up 17.8% - its biggest single-day percentage climb since Sept. 16, when it rose 18%. Gevo shares are on pace to extend their winning streak to four days, and are currently up 10 of the last 13 days.

On Wednesday, Gevo said it received a conditional commitment for a loan guarantee with disbursements totaling $1.46 billion from the Energy Department's Loan Programs Office for its Net-Zero 1 project in South Dakota.

Related: Gevo stock soars on $1.46 billion DOE loan for sustainable aviation fuel plant

Gevo shares are up 164% in 2024, significantly outpacing the S&P 500 index's SPX gain of 23%.

Also on Wednesday, renewable-fuels company Calumet Inc. $(CLMT)$ announced a conditional commitment for a loan guarantee of up to $1.44 billion from the Energy Department. The loan will fund the construction and expansion of a renewable-fuels facility owned by Calumet subsidiary Montana Renewables. This will enable Montana Renewables to expand sustainable aviation-fuel capacity by 300 million gallons per year, according to Calumet.

Calumet shares were down 9% Friday after ending Thursday's session down 0.3%. The stock is up 11.3% in 2024.

-James Rogers

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October 18, 2024 13:54 ET (17:54 GMT)

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