Energy

Little Guy Beats Up Big Guys in Alternative Fuel Race, Shares Skyrocket (GEVO, DD, BP, TOT)

Biofuels maker Gevo Inc. (NASDAQ: GEVO) is seeing its share price skyrocket today following a court ruling that the company probably did not infringe on a competitor’s patents. Gevo is now free to sell its renewable fuel products to any company or person willing to buy it.

The decision came in a patent infringement case brought in 2011 by Butamax Advanced Biofuels LLC, a joint venture between E.I. du Pont de Nemours & Co. (NYSE: DD) and BP plc (NYSE: BP). French oil giant Total SA (NYSE: TOT) supported the Butamax side in the suit. Butamax has said it will appeal the ruling.

In mid-February Gevo filed a patent infringement suit against Butamax on the same day that Gevo received the patent on its fermentation process.

The fuel in question is isobutanol, which could be a substitute for corn ethanol. Gevo’s fermentation process can produce isobutanol at a cheaper price than other makers. Isobutanol also contains more energy than ethanol, about 80% of the energy contained in the same amount of gasoline. Ethanol contains less than 70% of gasoline’s energy.

While large scale production of isobutanol is some years (decades?) off, Gevo stock is up more than 35% today, at $8.03 in a 52-week range of $4.84-$18.75.

Paul Ausick

Get Ready To Retire (Sponsored)

Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Get started right here.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.