NEW YORK (TheStreet) -- Gevo (GEVO) shares are up 16.47% to $3.95 on heavy volume in early market trading on Thursday after the renewable chemicals and biofuels company announced that patented wood waste derived jet fuel would be used in a first ever test flight.
The company currently makes isobutanol fuel from corn at its plant in Minnesota, but it has developed alternative processes that allow it to make the compound from the wood scraps left over from logging activities.
The jet fuel the company makes from the wood scraps will be used in a first of its kind 1,000 gallon renewable fuel demonstration test flight next year.
"There are significant economic and environmental benefits of renewable jet fuel, which makes it a great market for Gevo. This announcement demonstrates the flexibility of our technology and reinforces our technology leadership," said CEO Dr. Pat Gruber
The test flight is part of a partnership with the Department of Agriculture supported group Northwest Advanced Renewables Alliance (NARA), a five-year project consisting of 22 members with the stated goal of facilitating the development of remewable biojet and bioproduct industries in the Pacific Northwest using forest residuals that would otherwise become waste products.
"We're encouraged by Gevo's work with the NARA team in converting Pacific Northwest forest residual biomass into jet fuel, and look forward to working with them on this test flight and in the next phases of the commercialization of this technology," said Ralph Cavalieri, Director of NARA.
Gevo shares are climbing on three times its average daily trading volume so far today.