Gevo’s Net-Zero 1 Reaches Key Milestone for Loan Guarantee from the U.S. Department of Energy
August 07 2023 - 9:00AM
Gevo, Inc. (NASDAQ: GEVO) announced today that its Net-Zero 1
ethanol-to-jet project has been invited by the U.S. Department of
Energy (“DOE”) to the due diligence and term sheet negotiation
phase for a $950 million loan guarantee under the Title 17 Clean
Energy Financing Program. The invitation was based on the DOE’s
determination that Gevo’s Net-Zero 1 Project is highly qualified
and suitable for a loan guarantee from the DOE.
This key milestone marks the successful completion of the phase
II application and diligence process, which Gevo publicly announced
on January 19, 2023. Most importantly, this milestone signifies the
commencement of the underwriting phase for the debt financing
process."We believe that reaching this stage with the DOE is a
critical milestone and illustrative of Gevo’s progress in
developing Net-Zero 1. We are excited to be working with the DOE on
a process that supports our mission to deliver Sustainable Aviation
Fuel (SAF) to the marketplace.” stated Dr. Patrick Gruber, Chief
Executive Officer, Gevo.
The Net-Zero 1 plant is expected to have capacity of 65 million
gallons per year of sustainable aviation fuel and other
hydrocarbons, as well as approximately 1.5 billion pounds of
high-value nutritional products on a wet basis annually.
Electricity needed to power the plant is expected to come from wind
energy and other renewable energy sources, ensuring a sustainable
and environmentally friendly approach to fuel production.
Additionally, thermal energy needs of the plant are expected to be
met by renewable natural gas (RNG) sourced from upstream facilities
that produce RNG using manure from dairy cattle and livestock.DOE's
invitation into the due diligence and term sheet negotiation
process is not an assurance that DOE will issue a loan guarantee,
nor that the terms and conditions of a loan guarantee will align
with terms proposed by Gevo. The DOE invitation states, however,
that Gevo and its Net-Zero 1 Project have the potential to join the
DOE’s portfolio of loans. The foregoing matters are wholly
dependent on the results of DOE’s review and determinations.
About GevoGevo’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 it possesses the technology and know-how to convert various
carbohydrate feedstocks through a fermentation process into
alcohols and then transform the alcohols into renewable fuels and
materials, through a combination of its own technology, know-how,
engineering, and licensing of technology and engineering from Axens
North America, Inc., which 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.
Forward-Looking Statement
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 DOE, the ability of Gevo to obtain financing from
the DOE, the amount of the DOE loan guarantee, Gevo’s Net-Zero
projects, and other statements that are not purely statements of
historical fact. These forward-looking statements are made based on
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, 2022 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.
Media ContactHeather L. Manuel+1 303-883-1114PR@gevo.com
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