ENGLEWOOD, Colo. - Gevo , Inc. (NASDAQ: NASDAQ:GEVO) has secured a purchase agreement with Shell (LON:SHEL) Global Solutions Deutschland GmbH to supply a low-carbon intensity fuel blendstock, which will be utilized in the realm of motorsports. This renewable blendstock is designed to meet the high demands of competitive racing while also contributing to reduced carbon emissions.
The company's innovative approach involves producing racing fuel from sustainable feedstocks, such as agricultural waste, aligning with the EU Renewable Energy Directive Annex IX criteria. Gevo's Chief Business Development Officer, Damien Perriman, emphasized the significance of this step towards merging sustainability with high-performance motorsport fuels.
Shell, a global provider of specialty fuels to racing series, acknowledges the potential of Gevo's low-carbon products. Matthias Mundt, General Manager Fuels Technology Future Mobility Portfolio at Shell, expressed enthusiasm for the collaboration, which aligns with Shell's commitment to sustainability in the racing industry.
Gevo's mission is centered around transforming renewable energy and biogenic carbon into eco-friendly fuels and chemicals with minimal or zero carbon footprint. Among its contributions to the sustainable fuel sector are the operation of one of the largest dairy-based renewable natural gas facilities in the U.S. and the ownership of the first production facility for specialty alcohol-to-jet fuels and chemicals.
The company also focuses on verifying and tracking the carbon footprint of its operations through its subsidiary, Verity. This agreement with Shell represents a convergence of technological advancement and environmental responsibility in the competitive arena of motorsports.
Investors are advised that certain statements in this press release may be forward-looking and involve risks and uncertainties. Gevo does not commit to updating such statements, which are based on current management beliefs and expectations. Actual results may vary due to a range of factors.
This news article is based on a press release statement from Gevo, Inc.
In other recent news, Gevo Inc. reported significant developments in its Q2 2024 earnings call, including progress on key projects and financing. The company is on track to achieve financial close for its NZ one project by year-end, with development costs currently under budget. Gevo's RNG capacity expansion is also underway, aiming for an annual production capacity of 500,000 million BTUs. However, delays in approval for the -350 pathway have impacted the expected non-GAAP adjusted EBITDA range for RNG. The company is also in the process of securing a Department of Energy loan guarantee in the region of $900 million and has partnered with Google (NASDAQ:GOOGL) to integrate AI tools into its Verity platform.
In other company news, Gevo Inc. announced amended employment agreements with top executives and new contracts with other officers. Under the revised agreement, CEO Patrick Gruber will maintain his role with an annual base salary of $650,000 and is eligible for a target annual bonus of 100% of his base salary. President and COO Christopher Ryan's amended agreement includes a base salary of $431,600, with an 80% target bonus and annual equity awards valued at a minimum of $200,000. New agreements for Paul Bloom and Kimberly Bowron establish their base salaries at $407,000 and $333,300, respectively, with corresponding target bonuses. These recent developments highlight Gevo Inc.'s commitment to its strategic projects and executive team.
InvestingPro Insights
As Gevo, Inc. (NASDAQ: GEVO) continues to make strides in the sustainable fuels market, particularly with its recent agreement to supply low-carbon intensity fuel blendstock to Shell Global Solutions Deutschland GmbH, investors might find the following insights from InvestingPro valuable when evaluating the company's financial health and market position.
Gevo appears to be in a strong liquidity position, as it holds more cash than debt on its balance sheet, which could provide financial flexibility in its operations and growth initiatives. This is a reassuring sign for stakeholders interested in the company's ability to fund its innovative projects in renewable fuel technologies. Additionally, the company's stock has experienced a significant return over the last week, which might reflect positive market reception to recent developments, such as the Shell agreement.
However, it's important to note that Gevo is trading at a low Price / Book multiple of 0.35, which could suggest that the market is undervaluing the company's assets relative to its share price. This might present an opportunity for investors looking for potential growth stocks in the renewable energy sector.
From a financial perspective, Gevo has demonstrated a remarkable revenue growth of 98.34% over the last twelve months as of Q2 2024, which may indicate strong demand for its products and an effective scale-up in operations. Despite this, the company has not been profitable over the last twelve months, and analysts do not anticipate it will be profitable this year, as reflected in its negative P/E ratio of -2.49. The company's gross profit margin also stands at -105.98%, highlighting challenges in maintaining profitability amidst its expansion efforts.
For those interested in a deeper analysis, InvestingPro offers additional tips on Gevo, providing a more comprehensive look into the company's financials and market performance. To explore further, visit https://www.investing.com/pro/GEVO.
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