Gevo, Calumet Shares Jump as US Offers Loans for Biofuel Plants

Shares of biofuelmakers Gevo Inc. and Calumet Inc. surged after the companies were offered billions in financing for sustainable aviation fuel projects by the Biden administration.

Gevo surged as much 60% in after-hours trading, before paring some of the gains. The Energy Department offered the Englewood, Colorado-based company a $1.46 billion loan guarantee for a large-scale facility that turns corn starch into jet fuel.

The company’s Net-Zero 1 project in Lake Preston, South Dakota, will also make renewable diesel and renewable naphtha, the government said in a statement.

Calumet gained as much as 20% after the close of regular trading. ...