Gevo (GEVO) – Two SAF Commitments of 105 MGPY From Two Airlines

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Wednesday, March 23, 2022

Gevo (GEVO)
Two SAF Commitments of 105 MGPY From Two Airlines

Gevo Inc is a renewable chemicals and biofuels company engaged in the development and commercialization of alternatives to petroleum-based products based on isobutanol produced from renewable feedstocks. Its operating segments are the Gevo segment and the Gevo Development/Agri-Energy segment. By its segments, it is involved in research and development activities related to the future production of isobutanol, including the development of its biocatalysts, the production and sale of biojet fuel, its Retrofit process and the next generation of chemicals and biofuels that will be based on its isobutanol technology. Gevo Development/Agri-Energy is the key revenue generating segment which involves the operation of the Luverne Facility and production of ethanol, isobutanol and related products.

Poe Fratt, Senior Research Analyst, Logistics, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Delta Air Lines (DAL) upsizes SAF commitment and another airline commits. DAL increased the sustainable aviation fuel (SAF) commitment to 75 MGPY from 10 MGPY, or an extra 65 MGPY, under a seven year agreement that represents potential revenue of $2.8 billion, including green and other credits. Also, a member of the oneworld Alliance has committed to buy 30 MGPY, which represents potential revenue of $800 million.

    Contracted FSA portfolio remains high and added contracts likely later this year.  While the two commitments move the contracted FSA portfolio to 194 MGPY from 99 MGPY, or potential revenue of ~$8.0 billion, other potential large commitments from CVX (up to 150 MGPY) and others remains on the horizon. The development pipeline remains very high at more than 1,500 MGPY, or revenue potential in excess …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

 

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