Gevo Begins Startup of Its Renewable Natural Gas Project in Northwest Iowa on Schedule
January 31 2022 - 9:00AM
Gevo, Inc. (NASDAQ: GEVO) is pleased to announce today that it has
begun the process of bringing its wholly owned dairy manure-based
renewable natural gas (“RNG”) project online. Located in northwest
Iowa, the project is known as Gevo NW Iowa RNG, LLC (“NW Iowa
RNG”), and it is expected to produce approximately 355,000 MMBtu of
RNG per year.
“We’re excited to get NW Iowa RNG online, right on schedule,”
says Dr. Chris Ryan, president and COO of Gevo, Inc. “Our team here
has done a terrific job, creating a facility that will become an
example of how renewable energy can work for years to come, and
we’re excited to bring our partnership with area farmers to the
next stage.”
NW Iowa RNG fits in with Gevo’s business model of exploring ways
to use renewable carbon to make the most of energy opportunities by
dialing in sustainability and optimizing renewable resources.
Because dairy manure left in lagoons and used as fertilizer
releases high levels of methane to the atmosphere, there is an
opportunity to capture that methane as biogas and refine it to be
used as renewable natural gas. Doing so has no impact of the
fertilizer and nutrients available, yet creates more options to
sustainably manage fertilizers for sustainable farming practices.
That kind of smart thinking and waste reduction is a cornerstone of
the circular economy at the core of Gevo’s business model.
As Gevo reported in August 2021, the RNG is expected to be sold
into the California market under dispensing agreements BP has in
place with Clean Energy Fuels Corp., the largest fueling
infrastructure in the U.S. for RNG. The facility is expected to
lead to $9 million to $16 million a year of distributions from the
project expected to begin in late 2022, or early 2023 depending on
the timing of the California Air Resources Board’s (CARB) Low
Carbon Fuel Standard (LCFS). It is anticipated that NW Iowa RNG
will benefit from environmental product revenues under California’s
LCFS program and the U.S. Environmental Protection Agency’s
Renewable Fuel Standard program. RNG-fueled vehicles are estimated
to result in up to 95 percent lower emissions than those fueled by
gasoline or diesel on a lifecycle basis, according to a US
Department of Energy study.
“The farmers have demonstrated that they are willing to try
something new,” Ryan says. “By creating a renewable energy source
that reduces the greenhouse gas footprint of agriculture while
providing meaningful renewable energy where its badly needed—that
kind of foresight will make a difference in the long term far
beyond Northwest Iowa.”
About Gevo
Gevo’s mission is to transform renewable energy and carbon into
energy-dense liquid hydrocarbons. These liquid hydrocarbons can be
used for drop-in transportation fuels such as gasoline, jet fuel
and diesel fuel, that when burned have potential to yield net-zero
greenhouse gas emissions when measured across the full life cycle
of the products. Gevo uses low-carbon renewable resource-based
carbohydrates as raw materials, and is in an advanced state of
developing renewable electricity and renewable natural gas for use
in production processes, resulting in low-carbon fuels with
substantially reduced carbon intensity (the level of greenhouse gas
emissions compared to standard petroleum fossil-based fuels across
their life cycle). Gevo’s products perform as well or better than
traditional fossil-based fuels in infrastructure and engines, but
with substantially reduced greenhouse gas emissions. In addition to
addressing the problems of fuels, Gevo’s technology also enables
certain plastics, such as polyester, to be made with more
sustainable ingredients. Gevo’s ability to penetrate the growing
low-carbon fuels market depends on the price of oil and the value
of abating carbon emissions that would otherwise increase
greenhouse gas emissions. Gevo believes that its proven, patented
technology enabling the use of a variety of low-carbon sustainable
feedstocks to produce price-competitive low-carbon products such as
gasoline components, jet fuel and diesel fuel yields the potential
to generate project and corporate returns that justify the
build-out of a multi-billion-dollar business.
Gevo believes that the Argonne National Laboratory GREET model
is the best available standard of scientific-based measurement for
life cycle inventory or LCI.
Learn more at Gevo’s website: www.gevo.com
Forward-Looking Statements
Certain statements in this press release may constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements relate to a variety of matters including, without
limitation, the development and construction of the NW Iowa RNG
project, the ability of Gevo to realize production of RNG with NW
Iowa RNG, Gevo’s ability to generate cash from NW Iowa RNG, and
other statements that are not purely statements of historical fact.
These forward-looking statements are made on the basis of the
current beliefs, expectations and assumptions of the management of
Gevo and are subject to significant risks and uncertainty.
Investors are cautioned not to place undue reliance on any such
forward-looking statements. All such forward-looking statements
speak only as of the date they are made, and Gevo undertakes no
obligation to update or revise these statements, whether as a
result of new information, future events or otherwise. Although
Gevo believes that the expectations reflected in these
forward-looking statements are reasonable, these statements involve
many risks and uncertainties that may cause actual results to
differ materially from what may be expressed or implied in these
forward-looking statements. For a further discussion of risks and
uncertainties that could cause actual results to differ from those
expressed in these forward-looking statements, as well as risks
relating to the business of Gevo in general, see the risk
disclosures in the Annual Report on Form 10-K of Gevo for the year
ended December 31, 2020, and in subsequent reports on Forms 10-Q
and 8-K and other filings made with the U.S. Securities and
Exchange Commission by Gevo.
Gevo Investor and Media ContactHeather L.
Manuel+1 720-418-0085IR@gevo.com
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