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Gevo and LG Chem fast-track sustainable chemical tech

Published 12/12/2024, 08:37 AM
GEVO
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Gevo (NASDAQ:GEVO), with a mission to convert renewable energy and biogenic carbon into sustainable fuels and chemicals, operates one of the largest dairy-based renewable natural gas facilities in the U.S. and the first production facility for specialty alcohol-to-jet fuels and chemicals. While the company reported revenue growth of 16.59% in the last twelve months, InvestingPro analysis indicates challenges with profitability, showing negative EBITDA of $75.61 million. The company also tracks and verifies its carbon footprint through its subsidiary, Verity. For deeper insights into Gevo's financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 US equities with expert analysis and actionable intelligence.

Gevo, with a mission to convert renewable energy and biogenic carbon into sustainable fuels and chemicals, operates one of the largest dairy-based renewable natural gas facilities in the U.S. and the first production facility for specialty alcohol-to-jet fuels and chemicals. While the company reported revenue growth of 16.59% in the last twelve months, InvestingPro analysis indicates challenges with profitability, showing negative EBITDA of $75.61 million. The company also tracks and verifies its carbon footprint through its subsidiary, Verity. For deeper insights into Gevo's financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 US equities with expert analysis and actionable intelligence.

Dr. Paul Bloom, Gevo's Chief Carbon and Innovation Officer, stated, "Our ethanol-to-olefin process holds immense promise to decarbonize a substantial portion of the market for propylene." He highlighted the potential for ETO technology to revolutionize the production of renewable chemicals.

LG Chem's Vice President and Head of Petrochemicals R&D, Dong-hyun Cho, emphasized the importance of the partnership with Gevo in shaping LG Chem's sustainable and eco-friendly business strategies. Bio-propylene, expected to be a significant player in the bioplastic market and circular economy, could serve as a renewable alternative for a wide array of products, from auto parts to consumer goods.

Gevo, with a mission to convert renewable energy and biogenic carbon into sustainable fuels and chemicals, operates one of the largest dairy-based renewable natural gas facilities in the U.S. and the first production facility for specialty alcohol-to-jet fuels and chemicals. While the company reported revenue growth of 16.59% in the last twelve months, InvestingPro analysis indicates challenges with profitability, showing negative EBITDA of $75.61 million. The company also tracks and verifies its carbon footprint through its subsidiary, Verity. For deeper insights into Gevo's financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 US equities with expert analysis and actionable intelligence.

LG Chem, a diversified global chemical company, aims to achieve carbon-neutral growth by 2030 and net-zero emissions by 2050. With consolidated revenue of KRW 55.2 trillion (USD 42.3 billion) in 2023, LG Chem continues to focus on renewable energy and responsible supply chains.

The forward-looking statements in this announcement involve risks and uncertainties, and there is no assurance that the ETO technology will be commercialized or that the expected benefits of the agreement between Gevo and LG Chem will be realized. This news is based on a press release statement.

In other recent news, Gevo Inc. has made significant strides in its operations and financial growth. H.C. Wainwright reiterated a Buy rating on Gevo's shares, citing the company's advancements in profitability and cash flow prospects. Key developments include the acquisition of Red Trail's ethanol plant, which reported a gross profit of $5.3 million and a net profit of $3.8 million. Additionally, Gevo has exceeded its annual target rate of renewable natural gas production and initiated the commercialization of its Verity tracking system.

Moreover, Gevo is making progress with its Ethanol-to-Olefins technology, which is expected to generate licensing revenues in the upcoming months. The company also announced the pending acquisition of Red Trail Energy, expected to generate an estimated $200 million in revenue for fiscal 2023, and a $1.63 billion conditional loan from the U.S. Department of Energy for its Net-Zero 1 Sustainable Aviation Fuel project.

Lastly, Gevo has integrated the recently acquired CultivateAI into its operations, which is expected to contribute $1.7 million to the revenue in 2024. Despite reporting a loss from operations of $24 million for Q3 2024, Gevo maintains a robust financial standing with $292.9 million in cash and a combined revenue and interest income of $5.8 million. These are the latest developments in Gevo's strategy to enhance its revenue and its sustainable aviation fuel project.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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