Shares of biofuel companies Gevo Inc. and Calumet Inc. experienced significant gains after the Biden administration announced substantial financing for their sustainable aviation fuel projects. Gevo’s stock surged up to 60% in after-hours trading before slightly retreating. The Energy Department granted the Colorado-based company a $1.46 billion loan guarantee for a facility dedicated to converting corn starch into jet fuel. This project, located in Lake Preston, South Dakota, will also produce renewable diesel and naphtha.
Meanwhile, Calumet saw its stock rise by 20% after regular trading hours. Its subsidiary, Montana Renewables LLC, received a $1.44 billion conditional loan guarantee to expand its renewable fuels facility in Great Falls, Montana. This plant will transform vegetable oils, fats, and greases into sustainable aviation fuel, renewable diesel, and renewable naphtha.
The funding aligns with the Biden administration’s goal to boost domestic production of sustainable aviation fuel (SAF) to 3 billion gallons annually by 2030, escalating to 35 billion gallons by 2050. Currently, U.S. production lags significantly at 30 million gallons per year, as per the Energy Department.
Jigar Shah, director of the Loan Programs Office, underscored the importance of SAF in aviation’s shift towards decarbonization, stating, “SAF is the only viable near-term option to decarbonize the airline industry.”
The Department’s Loan Programs Office is facilitating this push towards cleaner aviation by providing the necessary financial backing, seeing SAF as pivotal in achieving the sector’s environmental ambitions. These developments come amid growing efforts to address aviation’s carbon footprint, with sustainable fuel serving as a promising solution to mitigate environmental impact in an industry hard to adapt.
This article was produced from an automated news feed and remains unedited.
Original Story https://www.livemint.com/news/world/gevo-calumet-shares-jump-as-us-offers-loans-for-biofuel-plants-11729117565393.html
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