The U.S. Department of Energy said on Wednesday it has approved conditional loan guarantee commitments totaling nearly $3 billion for two sustainable aviation fuel projects.

Shares of Gevo Inc. are climbing 38.2% in premarket trades Thursday after the renewable chemicals and biofuels company received a commitment for a $1.46 billion loan from the U.S. Department of Energy.

Airlines are banking on sustainable aviation fuel to reduce the industry’s planet-warming pollution. But the amount of lower-carbon alternatives available to them right now represents just a few drops in an ocean of petroleum.

Renewable fuels company Gevo has been awarded a $1.4 billion loan guarantee from the U.S. Department of Energy to support a sustainable aviation fuel plant in South Dakota. Tad Hepner, VP for Strategy and Innovation with the Renewable Fuels Association tells

The Department of Energy announced its first two loans Wednesday for fossil fuel-free aviation fuel, giving a nearly $3 billion boost to the fledgling industry.

The U.S. Department of Energy said on Wednesday it has approved conditional loan guarantee commitments totaling nearly $3 billion for two sustainable aviation fuel projects. The agency's Loan Programs Office said the funding of up to $1.

Interest in sustainable aviation fuel is climbing domestically and overseas. Iowa Corn Growers Association president Stu Swanson says SAF was discussed during a recent trade mission to India. “India Air hopes to become a hub in India for regional air carriers,

The Department of Energy offered conditional loan guarantees worth about $3 billion for two sustainable aviation fuel projects in Montana and South Dakota.