Calumet and Gevo Stocks Boom on Wednesday: What’s Happening? – Gevo (NASDAQ:GEVO)

Calumet Inc CLMT And Gevo Inc GEVO Shares are in extended trading on Wednesday after the companies received conditional commitments from the U.S. Department of Energy (DOE).

What happened to CLMT: Calumet announced Wednesday that the DOE Loan Programs Office has approved a conditional commitment for a loan guarantee of up to $1.44 billion to finance the construction and expansion of a renewable fuel facility owned by Calumet subsidiary Montana Renewables has granted.

The loan guarantee is structured in two tranches. The first tranche of approximately $778 million is expected to be completed in the fourth quarter and will be disbursed from 2025 until the project’s expected completion in 2028. The initial closing will also include a $150 million capital investment.

“Through our collaboration with the U.S. Department of Energy, we are pleased to continue to lead our nation’s transition to sustainable aviation fuels,” he said Todd BorgmanCEO of Calumet.

“This investment will allow us to leverage our first-mover advantage and our unique renewable hydrogen and pretreatment technologies to make Montana Renewables a world-class SAF producer.”

See also: Netflix Q3 Earnings Preview: Ad-Supported Plan, Price Hikes and Content Overview in Focus as Company ‘Adds More and More Live Content’

What happened to GEVO: Gevo also received a conditional loan guarantee commitment from the DOE’s Loan Programs Office with disbursements totaling $1.46 billion. The commitment is related to the construction of the Company’s Net Zero 1 (NZ1) project in South Dakota.

“This marks a turning point for the Net Zero 1 project and a critical step forward in Gevo’s mission to transform the aviation industry by providing a scalable, sustainable and economical renewable carbon-based aviation fuel – SAF,” he said Patrick GruberCEO of Gevo.

“This valuable commitment to support NZ1’s funding, if completed, is also expected to attract other capital investment to advance SAF commercialization given the agency’s thorough due diligence.”

CLMT, GEVO price action: According to Benzinga Pro, at the time of publication, Calumet shares were up 19.74% to $26.26 and Gevo shares were up 46.22% to $3.28 after the market closed.

Photo: Shutterstock.