ENGLEWOOD, Colo. - Gevo , Inc. (NASDAQ: NASDAQ:GEVO), together with its subsidiary Verity Holdings, LLC, and ClearFlame Engine Technologies, Inc., today announced a collaborative effort to enhance the traceability of decarbonization efforts in the U.S. road freight sector. This initiative aims to authenticate the carbon intensity of biofuels from their agricultural origins to their use in transportation.
The collaboration will utilize Verity’s carbon accounting software to track environmental attributes from the growth of crops to their processing into low-carbon ethanol. This ethanol is then used by ClearFlame in their engines designed to run on 100% ethanol, a move that has demonstrated a 42% reduction in greenhouse gas emissions.
ClearFlame's retrofit technology requires changing less than 5% of parts on existing vehicles, potentially offering a net zero solution to the freight industry.
BJ Johnson, CEO and co-founder of ClearFlame, emphasized the importance of this collaboration for customers seeking to report emissions savings and secure emissions credits. Ron Zink, COO of Verity, highlighted the consumer demand for verified steps towards decarbonization and the potential impact on the transition to regenerative agriculture and further decarbonization investments.
Gevo is known for developing renewable alternatives to petroleum-based products, focusing on mainstream fuels like gasoline and jet fuel from renewable feedstocks. Verity Holdings, a Gevo subsidiary, provides carbon project development with its digital MRV platform. ClearFlame, based in Geneva, IL, offers diesel alternatives for various markets, including trucking and power generation.
The partnership aims to foster the demand for low carbon intensity biofuels and support companies in meeting their Environmental, Social, and Governance (ESG) goals.
This information is based on a press release statement.
InvestingPro Insights
In the context of Gevo's recent collaborative efforts to track and reduce carbon intensity in biofuels, a glance at the company's financial health and stock performance provides additional insight. According to InvestingPro data, Gevo holds a market capitalization of $160.48 million. Despite the company's focus on innovative environmental solutions, it has faced challenges as reflected in its Price / Book multiple of 0.3, indicating that the stock is trading at a low valuation relative to the company's book value. This could be seen as an opportunity for investors who believe in the company's long-term strategy and its role in the decarbonization of the transportation sector.
InvestingPro Tips highlight that Gevo is currently not profitable, with analysts not anticipating profitability this year. This aligns with the company's reported gross profit margin of -83.08% over the last twelve months as of Q1 2024. Additionally, Gevo's stock price has been quite volatile and has performed poorly over the last decade, which may concern investors looking for stable returns. However, with liquid assets exceeding short-term obligations, Gevo maintains a degree of financial flexibility.
For readers interested in a deeper dive into Gevo's financials and stock performance, InvestingPro offers additional tips to consider. There are 11 more InvestingPro Tips available, which could help investors make more informed decisions. To explore these insights, visit InvestingPro for Gevo. Plus, use coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.