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Gevo Stock Surges 65% as Carbon Credits Bring in First-Ever Profits

Gevo, Inc., a renewable fuels and carbon solutions company, has reported its first-ever profitable quarter in Q2 2025, marking a major shift in its financial performance. This is all thanks to its carbon credit sales of around $22 million and other low-carbon product sales.

The company posted net income of $2.1 million, a sharp turnaround from previous losses. Adjusted earnings reached $17 million, and earnings per share came in at $0.01. That is well above analyst forecasts of a loss of $0.07.

Revenue for the quarter totaled $43.41 million. This was about $14 million higher than the previous quarter, though slightly below some market expectations. This earnings surprise drove a dramatic reaction in the stock market.

Gevo shares surged 65% in after-hours trading following the announcement. It has continued to climb about 46% in pre-market trading the next day.

This milestone is significant for Gevo. The company has been working to diversify revenue streams and build a sustainable business model that integrates renewable fuel production with carbon reduction initiatives.

Gevo stock price q2 2025 earnings
Source: TradingView

Carbon Credits: The Secret Sauce Behind Gevo’s First-Ever Profit

A major factor behind Gevo’s profitability was its revenue from carbon credits. This segment has become an important part of its business model. The company benefits from two main types of credits:

Clean Fuel Production Credits (CFPCs):

These credits contributed roughly $21 million to net income during the first half of 2025. They reward low-carbon fuel producers for displacing fossil fuel use.

Carbon Dioxide Removal (CDR) credits:

In Q2, Gevo generated over $1 million from selling high-integrity carbon removal credits. The company expects to earn $3–5 million a year from CDR credits soon. In the long run, this could grow to over $30 million each year.

In addition, Gevo completed its first sale of carbon removal credits certified by Puro.earth.  It is a leading registry for engineered carbon removal. These credits are backed by carbon capture and storage (CCS) at Gevo’s planned North Dakota ethanol facility. The plant is designed to sequester up to 1 million metric tonnes of CO₂ per year.

By monetizing its carbon abatement efforts, Gevo is tapping into a rapidly growing market. This strategy reduces its reliance on volatile biofuel margins. Also, it positions the company to benefit from both regulatory programs and voluntary corporate climate commitments.

Dr. Patrick Gruber, Gevo’s Chief Executive Officer, remarked:

“This was a landmark quarter for us…I really like these results regarding carbon sales. It’s outstanding that companies are willing to step up and pay for what they believe in–carbon reduction. It’s a new product; and for us, it’s a co-product. Our fuel manufacturing systems are designed end-to-end to abate carbon. The result is that we can manufacture cost-competitive renewable liquid fuels, while abating carbon.”

Turning CO₂ into Cash: CCS, Carbon Removal, and Net Zero

Gevo’s business is built on producing renewable fuels such as sustainable aviation fuel (SAF) and renewable natural gas (RNG. These are while integrating carbon reduction technologies to maximize climate benefits. 

In the first quarter of 2025, the company reported over 100,000 metric tons of carbon abatement. This combines CO₂ captured through CCS and emissions avoided through renewable fuel production.

The company’s CCS operations in North Dakota could play a critical role in scaling these achievements. Once it starts working, the facility can remove and store CO₂. This amount equals the yearly emissions of over 200,000 cars.

These milestones help Gevo reach its goal of providing clean fuels and real carbon reductions. This aligns with the needs of airlines, shipping companies, and other sectors under increasing pressure to cut emissions.

Gevo aims to reach net-zero greenhouse gas emissions by 2050. The company’s strategy focuses on producing low-carbon fuels and removing CO₂ from the atmosphere.

Carbon credits are a key part of Gevo’s plan. By selling high-quality credits from CCS and renewable fuel projects, the company earns revenue while helping other businesses offset their emissions. These efforts cut Gevo’s own carbon footprint and support wider climate goals.

gevo carbon emissions
Source: Gevo

Carbon Markets: Opportunities and Challenges

Gevo’s success underscores the growing influence of carbon markets in the clean energy economy. The voluntary carbon market, valued at about $2 billion in 2024, is projected to grow to $50 billion or more by 2030, according to industry forecasts. Demand for high-quality, verifiable credits is rising as corporations seek to meet net-zero targets.

voluntary carbon credit demand growth

High-integrity carbon removal credits, like those sold by Gevo, are particularly short in supply. This allows sellers to command premium prices. However, the market is also facing scrutiny over credit quality and transparency. 

durable cdr purchasing trend q2 2025

For Gevo, selling credits backed by measurable and permanent CO₂ storage offers a competitive advantage in a market where buyers are increasingly selective.

With the global push for decarbonization growing stronger, companies that blend renewable energy and carbon removal could attract long-term buyers. This is true for both compliance and voluntary markets. 

Why Investors Are Suddenly Paying Attention

The market’s strong response to Gevo’s Q2 results reflects investor confidence in the company’s shift toward profitability and diversified revenue sources. The surge in trading volume—over 71 million shares traded on the day of the earnings release. This signals that both institutional and retail investors are paying attention to its growth story.

If Gevo keeps making money from carbon credit sales and grows its clean fuel production, it could attract climate-focused funds and ESG investors with a strong track record. However, market volatility in both fuel prices and carbon credits could still present some challenges.

Scaling the Model: Can Gevo Keep the Momentum?

Gevo will expand its production of sustainable fuels. It also plans to grow its CCS capabilities and carbon credit sales. This strategy aligns with global climate policies that reward low-carbon energy solutions and penalize heavy emitters.

The company is combining renewable fuel production and measurable carbon removal. This strategy places it in a fast-growing area that connects energy and environmental sectors. If it keeps showing strong results and clear credit checks, it could set a standard for blending clean energy and carbon markets.

Gevo’s first profitable quarter shows the financial promise of combining renewable fuel production with carbon credit sales. The company is responding to the rising demand for high-quality carbon removal credits. Their effective operations help them stand out in the new clean energy and carbon economy.

Gevo’s ability to sustain profitability will depend on scaling production, securing long-term credit buyers, and navigating the fast-evolving landscape of carbon markets. 

The post Gevo Stock Surges 65% as Carbon Credits Bring in First-Ever Profits appeared first on Carbon Credits.

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What Scope 3 looks like traced back to the land

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For most companies, the largest figure in the carbon inventory is not the office, the vehicle fleet, or the electricity bill. It sits upstream, in the goods and materials a business buys to make and sell its products. These purchased inputs form the bulk of a company’s Scope 3 emissions, which routinely exceeds everything the business controls directly, and can add up to 90% of their global footprint.

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Carbon Footprint

Unlike A.I., climate change’s existential threat is not hypothetical. It is killing people now.”

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Leah Stokes, professor of environmental politics at U-C, Santa Barbara, in New York Times, The Big Threat Has Been Climate Change. Now Comes A.I., Sept. 22.

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Why I’m Pro-Nuke Now: Beginning

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I composed this essay over much of 2026, as I was writing Beyond Vogtle — my detailed study (co-authored with James Boucher) of U.S. nuclear costs from the 1980s post-Three Mile Island reactors to the Vogtle 3 and 4 units completed earlier in this decade. It traces my journey from nuclear power doubter to proponent.

My story is both general and personal: what was changing in the wide world of nuclear power, energy policy and climate; and how I viewed those changes. I  hope this mode of story-telling resonates with a wide audience and also provide a backdrop to “Beyond Vogtle.”

It’s in three parts.

Detail from 1979 rally poster. Full poster appears below.

The first installment begins at the big Washington rally called to mark the Three Mile Island reactor accident, and covers the recession of nuclear dread, the advent of virtually always-on reactor operation, and nuclear’s status as the least carbon-emitting energy supply technology. 

Installment #2 begins with the failure (to date) of carbon tax advocacy — “A Climate Cure No One Wanted” — and continues with the closure of Indian Point and the concurrent slow dissolve of my dream that renewable energy could do it all.

The third and final installment begins with a slight detour in which I contrast the appalling human damage from automobility with nuclear power’s increasingly remote dangers, and then return to energy policy with a fresh way to regard nuclear power’s potential contribution to decarbonizing U.S. grids.

Thank for reading. Enjoy. And be sure to look at Beyond Vogtle: What History Tells Us About the Cost of New Nuclear (yes, that’s the full title).

  — C.K.

*  *  *  *  *  *  *  *  *

I’m pro-nuclear power. Big time.

I don’t just want the U.S. to keep running its 95 extant reactors. I want us to build more. Lots more. Hundreds.

I’m not alone. Public opinion is shifting toward nuclear power. But I came to that conclusion after spending years arguing the other side. From the mid-1970s to the late 1980s, I published a raft of critical analyses that got a good deal of public attention ― and even some traction within the nuclear industry itself. My core argument was that the cost of building nuclear plants was rising much faster than the costs of competing sources of energy. The main driver, I said, was a cascade of safety-requirement changes triggered by widespread fears of reactor accidents.

Here’s the full poster.

That work earned me a speaking spot at the massive May 6, 1979 rally in Washington demanding a halt to reactor construction in the wake of the March 28 meltdown at Three Mile Island in Pennsylvania. In the weeks before the rally, my research was cited in hundreds of news stories. At the Capitol, I stood alongside consumer advocate Ralph Nader, the leading figure in the U.S. antinuke movement; actress Jane Fonda, whose new film, “The China Syndrome,” had eerily foretold the Three Mile Island meltdown; and folk-rock icon Jackson Browne. I told the cheering throng that nuclear power was finished.

Cost overruns and canceled reactor projects were putting billions of dollars on the line, and I spent much of the next decade in courtrooms all over the country, explaining patiently to utility regulators why investors, not customers, should bear those losses. I eventually moved on to other public policy work, sparking big-city bicycling and helping bring congestion pricing to New York. But I kept watching nuclear power and the broader energy landscape. Over time, what I saw led me to turn from skeptic to supporter. Here’s why, in eight parts.

1. Fear and Dread Recede

Ask 100 random people today what “TMI” means, and at least 90 will say “Too Much Information.” Maybe one will mention the 1979 accident at Three Mile Island.

That’s a real shift.

The 1970s were commercial nuclear power’s first decade, and the Three Mile Island accident brought it to a terrifying close. Sixty hours into the slow-unfolding crisis, as fears grew that a “hydrogen bubble” in the reactor might explode and rupture the containment dome, CBS Evening News anchor Walter Cronkite captured the nation’s dread: “The world has never known a day quite like today. It faced the considerable uncertainties and dangers of the worst nuclear power plant accident of the atomic age. And the horror tonight is that it could get much worse.”[1]

The stricken reactor was eventually stabilized. But a combination of soaring costs and public apprehension brought an end to nuclear power’s rapid expansion in the United States.

Cronkite’s warning was about Three Mile Island itself, but it seemed to foreshadow more disasters to come. Yet since 1979, the U.S. nuclear industry has accumulated nearly 20 times as much reactor operating experience as it had built up in its entire history before the meltdown, without a sequel.[2] Like the dog that didn’t bark, this quiet fadeout of reactor calamities is an overlooked shift ― and it is prompting a rethink of long-held certitudes about nuclear power.

With each passing year there are fewer people who grew up with dread from Cold War-era A-bomb drills and weapons test fallout that got bundled into nuclear power. There are more young people like Zeke, a Brooklyn high-schooler who in 2019 went to Battery Park City to greet climate activist Greta Thunberg after her sail-powered trans-Atlantic voyage, but who this past May called fears about nuclear power “over-exaggerated.”[3] (Thunberg herself has said that Germany made a mistake by phasing out its nuclear plants, since it led to a sharp rise in coal-fired electricity.)

I’ve heard the same sentiment in hundreds of casual conversations over the past decade ― at climate rallies and on Trader Joe’s checkout lines, in California and in New York. These conversations suggest that the oppositional currents that once compelled federal nuclear regulators to keep piling on costly new safety requirements are losing force.

2. Permanent Peak Performance

Even before construction costs began to soar in the 1970s, nuclear power had another Achilles heel: spotty operating performance.

Throughout the 1970s and 1980s, the U.S. nuclear power sector struggled to maintain even a 60 percent “capacity factor” ― a measure of how much of a plant’s potential output it generates. That’s a dismal rate for equipment that’s expensive to build. I know this because I researched and wrote the first full-length study of shortfalls in U.S. nuclear plant performance, in 1976.[4]

That started to change in the mid-1980s. Plants finished safety upgrades required after Three Mile Island. The industry began sharing best practices ― and mistakes to avoid. Economic incentives helped too, as utility earnings became tied to how often plants actually ran.

A remarkable turnaround, though seldom credited in climate and nuclear discourse.

The turnaround has been dramatic. Since 2000, U.S. nuclear plants have averaged 90 percent capacity factor ― a huge leap from the earlier 60 percent. In effect, downtime has dropped four-fold, from 40 percent of the time to just 10 percent. Repair jobs and retrofits that used to drag on are now precision-scheduled like the train heist in “Breaking Bad.”

The higher reliability brings a huge symbolic benefit. In the 1970s, U.S. reactors seemed to stumble from one fiasco to the next. In Alabama, a technician using a lit candle to locate an air leak started a fire that burned through a thousand cables and knocked two brand-new reactors offline for 19 months. At some ocean-cooled plants, saltwater corroded delicate heat-transfer tubes, forcing protracted repairs. Profits and industry morale took a beating, and nuclear power became a punchline on “The Simpsons.”

Those days are long past. Nuclear power, uniquely, has blossomed into both grid bulwark and climate hero. Thanks to those higher ― much higher! ― capacity factors, each nuclear plant now displaces 50 percent more carbon-emitting power generation than it used to.[5] In fact, at a 90 percent capacity factor, a kilowatt of nuclear power delivers double or triple the climate benefit of a kilowatt of wind power (which averages 30 to 40 percent capacity factor) and roughly five times that of solar (15 to 20 percent) ― a crucial distinction that’s often missing from gushing coverage of renewable energy.

3. Climate to the Fore

Nuclear power’s newfound operational mastery would matter much less but for the urgency of the climate crisis and the persistence of U.S. and global carbon emissions. Like wind and solar, nuclear power generates electricity without burning carbon.

Squint to see that nuclear lifecycle greenhouse gas emissions range from 5.1 to 6.4 (in g CO2 equivalent per kWh); analogous range for solar-PV is 7.4 – 83.0; wind, 7.8 – 23.0. Source, Dinon et al., in report linked in this section’s second paragraph.

It is true that fossil fuels are implicated in nuclear power’s supply chain. Uranium mining uses petroleum, and enriching nuclear fuel requires electricity. But even counting upstream carbon, nuclear power’s climate footprint is smaller than that of wind, solar or hydropower, according to an authoritative 2022 analysis by a multinational team for the UN Economic Commission for Europe. (Their finding matched that of the similarly comprehensive 2018 report by the UN-chartered Intergovernmental Panel on Climate Change.[6])

That’s another big change. In nuclear power’s early years, uranium fuel enrichment was so energy-intensive that the three U.S. “gaseous diffusion” plants were said to consume 10 percent of all electricity used by American factories. But diffusion enrichment has given way to gas centrifuges and, more recently, laser isotopic separation ― methods that use 20 times less energy to isolate fissile U-235 from U-238.

The bottom line: kilowatt-hour for kilowatt-hour, nuclear-generated electricity is at least as effective as solar and wind at cutting climate pollution. Meanwhile, Hurricane Katrina, Superstorm Sandy, “heat domes” and wildfires, and, in August, the first Himalayan glacial collapse, have made once-hypothetical climate death and disruption a daily reality. More than rising electricity demand from A.I., it’s the climate crisis that’s driving renewed interest in nuclear power.

Click here for the second installment, Why I’m Pro-Nuke Now: Beginning.

[1] Quoted passage is from a local (PA) news site, though the an archived Channel 2 broadcast it cited is no longer on line.

[2] The sole “near-miss,” and a major one, was the 2002 discovery by operators at the Davis-Besse nuclear plant near Toledo, OH of extensive corrosion of the reactor vessel head — a vital barrier against loss of coolant and release of radiation. The U.S. General Accounting Office sternly rebuked the Nuclear Regulatory Commission for failing to identify and prevent the corrosion. See GAO, Nuclear Regulation: NRC Needs to More Aggressively and Comprehensively Resolve Issues Related to the Davis-Besse Nuclear Power Plant’s Shutdown, GAO-04-415, May 2004.

[3] In-person conversation at People’s Policy Conference at the New School for Social Research in New York, May 2, 2026.

[4] C. Komanoff, Power Plant Performance: Nuclear and Coal Capacity Factors and Economics (15 MB pdf), Council on Economic Priorities, 1976.

[5] Dividing today’s 90% uptime by the former 60% yields 1.50, indicating 50 percent more kilowatt-hours per kW.

[6] IPCC Annex III report, Technology-Specific Cost and Performance Parameters, 2018. See table on p. 1333.

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