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.

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.

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.