Gevo Inc. (NASDAQ: GEVO) shares surged by over 400 percent midday on Monday after the Environment Protection Agency raised the amount of isobutanol used for on-road automobiles.
The EPA raised the amount to 16 percent blend level in gasoline, increasing from the previous amount of 12.5 percent blend. The approval came at the request of Delaware-based Butamax Advanced Biofuels LLC, a joint venture between BP Plc. (NYSE: BP) and DuPont , according to MarketWatch.
“Blends of isobutanol at a 16% level have previously been used for boats and off-road applications. We congratulate Butamax in getting this registration done. We all benefit. 16% blend levels allow more RINS per gallon, high octane, and many other benefits. At Gevo we have been developing the markets for isobutanol containing gasoline, in particular to meet the demand for the “ethanol free” segment of the gasoline market. A 16% blend option will give our customers and partners an option for an even better product for on-road use.” said Patrick Gruber, Chief Executive Officer of Gevo.
Gevo is renewable technology, chemical products and next generation biofuel based company that has been developing technology in the industry. The technology uses a variety of different chemical compositions to focus on its production of isobutanol and other renewable feedstocks.
Other biofuel stocks rose within the biofuel industry. Aemetis Inc (NASDAQ: AMTX) saw its shares rise by 2.1 percent, Renewable Energy Group Inc (NASDAQ: REGI) shares rose by 5.65 percent, Clean Energy Fuels Corp (NASDAQ: CLNE) shares rose by 4.12 percent and Methanex Corporation (NASDAQ: MEOH) shares rose by 1.97 percent.
Gevo shares surged by as much as 439 percent on Monday before settling down to 270 percent late midday. Although shares jumped on Monday, shares are only up 10.71 percent this year.