10 Best Green Energy Penny Stocks to Buy Now

7. Gevo (NASDAQ:GEVO)  

Number of Hedge Fund Holders: 13  

Market Capitalization as of September 4: $176.73 Million  

Gevo (NASDAQ:GEVO) develops and sells renewable fuels, including gasoline, jet fuel, and diesel. The company primarily focuses on sustainable aviation fuel (SAF) and is also exploring commercial opportunities in renewable natural gas (RNG) including hydrocarbons for gasoline and diesel fuel along with other sustainable chemicals and materials such as polyester. Gevo (NASDAQ:GEVO) also possesses intellectual property designed for large-scale deployment of net-zero hydrocarbon fuels and chemicals.

In Q2, Gevo’s (NASDAQ:GEVO) RNG project reached record production levels, with annualized output hitting approximately 400,000 million British thermal units (MMBtu) per year, marking a 22% increase compared to the same period in 2023. Gevo’s (NASDAQ:GEVO) subsidiary, Verity is collaborating with Google to speed up the use of artificial intelligence (AI), which is expected to enhance customer experience and improve carbon intensity tracking and optimization.

Additionally, Verity has partnered with Landus Cooperative to create a comprehensive supply chain tracking solution aimed at increasing the profitability for renewable fuel producers, including ethanol, bio/renewable diesel, and SAF. Verity is also working with ClearFlame Engine Technologies to develop a decarbonization tracking system for the U.S. road freight transportation sector, which uses around 29 billion gallons of fuel annually. By the end of the second quarter, Verity had retained 100% of the farmers in its grower program, covering approximately 76,000 acres, which is a 17% increase from the previously reported 65,000 acres.

On August 21, Gevo (NASDAQ:GEVO) entered into a purchase agreement with Shell Deutschland to supply low-carbon intensity fuel blendstock for motorsports. This renewable blendstock, derived from sustainable feedstocks like agricultural waste is designed to meet the demanding performance standards of racing while significantly reducing carbon emissions.

With record production levels in its RNG project and strategic partnerships driving growth in various segments, Gevo (NASDAQ:GEVO) is poised for significant upside potential. Industry analysts have a consensus on the stock’s Buy rating, setting an average share price target at $5.15, which represents a 150% upside potential from its current level. As of the second quarter, the stock is held by 13 hedge funds and the stakes amount to $5.21 million. Millennium Management is the largest shareholder in the company with stocks worth $2.88 million as of June 30.