NEW YORK (TheStreet) -- Shares of Gevo (GEVO) were gaining 114.7% to $5.26 on heavy trading volume Thursday after the chemical company announced Alaska Airlines (ALK) will be a launch partner for its alcohol-based renewable jet fuel.
Alaska Airline will fly a demonstration flight using Gevo's biofuel in mid to late 2015 after the company received ASTM International certification. Gevo said it has been working through the ASTM process for six years so the fuel can be integrated into existing distribution infrastructure and onto commercial aircraft after it receives certification.
"A sustainable biofuels industry would help insulate airlines from fuel price spikes, enabling them to offer economical air travel while remaining profitable, while helping meet their environmental goals, and spur economic growth within and outside of aviation," Gevo CEO Dr. Patrick Gruber said in a statement.
About 38.2 million shares of Gevo were traded by 3:46 p.m. Thursday, well above the company's average trading volume of about 439,000 shares a day.
TheStreet Ratings team rates GEVO INC as a Sell with a ratings score of E+. TheStreet Ratings Team has this to say about their recommendation:
"We rate GEVO INC (GEVO) a SELL. This is based on several weak investment measures, which should drive this stock to significantly underperform the majority of stocks that we rate. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and generally disappointing historical performance in the stock itself."