Dallas, Texas 04/24/2014 (FINANCIALSTRENDS) – Gevo, Inc. (NASDAQ:GEVO) which is a diversified bio fuel manufacturer saw its share price drop by close to 7.6 percent during trading on 23rd April.
This comes on the back of the company’s announcement on 22rd April that German international airline Deutsche Lufthansa AG has come on board to test out the new fuel that the Englewood based firm has developed in tandem with France based oil firm Total SA (FP) in their aircraft. On the back of the news the company stock had jumped up by a huge 35.6 percent during trading on 22nd April.
The announcement gave details of the evaluation that Lufthansa has agreed to initiate. The testing involves the airliner using the newly developed isobutanol based jet fuel developed by Gevo, Inc. (NASDAQ:GEVO) to test the efficacy, cost factor and the reliability of using this alternative fuel. The European Union too is party to these tests. Isobutanol is a fuel property bearing product which has been produced by Gevo, Inc. (NASDAQ:GEVO) using proprietary technology to convert plant waste and corn to produce a new compound which can be mixed with gasoline in predetermined proportions.
Explaining the importance of this move, Gevo, Inc. (NASDAQ:GEVO) President, Chief Operating Officer, Chief Technology Officer Christopher Michael Ryan Ph.D. has been quoted to have said that, “By using isobutanol as a renewable raw material for producing jet fuel, the resulting jet fuel has the mixtures of molecules typical of petro-based jet fuel making it directly compatible with engines and infrastructure. Renewable jet embodies the potential of cleaner, greener, and as we scale up, cost competitive drop-in fuels. We greatly appreciate Lufthansa’s and the European Commission’s support of this effort”.
On the back of this positive development, the share price of the stock had jumped up on 22nd only to move back yesterday, as investors went in for booking profits, post day before yesterday’s huge gains.