Gevo, Inc. (NASDAQ:GEVO) recently announced that it has successfully completed the production of the world’s first cellulosic renewable jet fuel. The company announced that it made use of its patented technology, to convert sugars derived from wood waste, to generate isobutanol, which is eventually converted to Gevo’s alcohol-to-jet fuel. It should be noted here that the fuel is already certified for use in commercial flights, provided it meets the ASTM D7566 specifications.
GEVO also noted that Alaska Airlines is expected to be the first carrier to make use of the fuel, in the following months. As such, the company has already produced the first 1,000 gallons of the fuel. Alaska Airlines had also flown two commercial flights, in June, using the same fuel, but using corn for the sugar feedstock. However, the current production had been backed by Northwest Advanced Renewables Alliance, which supplied the sugars from forest residuals, for the purpose.
Dr. Patrick Gruber, the CEO of GEVO, took the opportunity to thank and congratulate his team, the members from NARA, the National Institute of Food and Agriculture and the US Department of Agriculture, for their efforts and support. He also claimed that this should remove all doubts in the ability of Gevo’s technology in converting cellulose sugars to isobutanol.
Earlier last month, the company conducted its underwritten public offering of common stock and warrants, priced at $15.6 million. The offering included the sale of 24.8 million shares of series E units, with each unit comprising of one share of its common stock and half of a series I warrant. Added to this, Gevo also sold 3.7 shares of its series F units, which comprised of a pre-funded series J warrant and half a series I warrant. The company noted that the series I warrant carry an exercise price of $0.55 per share and would be valid till September 13, 2021. However, the series J warrants would expire on September 13, 2017.
Gevo, Inc. (NASDAQ:GEVO) lost 2.64% of its share value, on a trade volume of 7.83 million, to reach a close at $0.394, at the end of the October 14 trading session.