Gevo (GEVO) shares continued to fall to 15% on Thursday morning, but the stock has started to rebound after the company released a well news at 1:00 p.m., but it still fell 12% at close. So what the news is and will it drive this stock to rise this Friday?
The company said Thursday that it has closed an about $68 million private activity bonds offering, which is used for the construction of its renewable natural gas project in Northwest Iowa. The project will generate renewable natural gas captured from dairy cow manure.
The feedstock of the project will be supplied by three dairy farms located in Northwest Iowa totaling over 20,000 milking cows. When fully operational, the project is expected to generate about 355,000 MMBtu of renewable natural gas per year. Gevo has 100% of its equity capital. The construction of the project is expected to begin by the end of April 2021 and expected to generate cash for the company of about $9 million to $16 million per year.
However, we have seen of late that green energy stocks are losing momentum due to valuation concerns. These stocks have achieved good growth between January and February this year, and the callback of this moment is normal. Green energy companies need to find new momentum to drive their stocks up, and Gevo has done a good job.
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