BP plc (ADR) (BP) & More: Gevo, Inc. (GEVO) Begins Countdown to Ethanol’s End

Foolish bottom line

All in all, this is great news for Gevo. Beginning commercial production with the GIFT separation unit brings the company one big step closer to having commercial quantities of sellable product. It will also demonstrate to the ethanol industry that higher-value isobutanol is just a retrofit away. That is huge, especially since domestic ethanol capacity is already well above the limit for gasoline blending. Gevo could convert 1 billion gallons of ethanol production — the amount of extra capacity today — into about 820 million gallons of isobutanol production. Of course, that is still years away. But this is the first step toward that reality, which I believe is very achievable. You may want to wait for shares to cool off, although, at a market cap under $100 million, I don’t see much downside for long-term investors.

The article Gevo Begins Countdown to Ethanol’s End originally appeared on Fool.com and is written by Maxx Chatsko.

Fool contributor Maxx Chatsko owns shares of Codexis. Check out his personal portfolio, his CAPS page, or follow him on Twitter @BlacknGoldFool to keep up with his writing on energy, bioprocessing, and biotechnology.The Motley Fool has no position in any of the stocks mentioned.

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