Gevo’s Northwest Iowa RNG Project Hits Major Milestone; Begins Injecting Dairy RNG into Natural Gas Pipeline
June 14 2022 - 9:00AM
Gevo, Inc. (NASDAQ: GEVO) announced that its renewable natural gas
(“RNG”) project in Northwest Iowa (the “RNG Project”) has been
producing biogas and is now upgrading and injecting RNG into the
natural gas pipeline. The RNG Project generates renewable natural
gas captured from dairy cow manure. The manure for the RNG Project
is supplied by three dairy farms located in Northwest Iowa totaling
over 20,000 milking cows. When at full operational capacity, the
RNG Project is expected to generate approximately 355,000 MMBtu of
RNG per year, which will be transported and sold in California. BP
Canada Energy Marketing Corp. and BP Products North America Inc.
(collectively, “bp”) will market the RNG in California on behalf of
Gevo, and Gevo expects that the RNG Project will generate between
$16 and $22 million of Project EBITDA1 per year beginning by 2023
depending on a variety of assumptions, including the value of
credits under the federal Renewable Fuel Standard Program (“RFS”)
and the Low Carbon Fuel Standard (“LCFS”) in California. Gevo
expects to be able to get approval for Renewable Identification
Numbers (“RINs”) through RFS and carbon credits from LCFS later
this year or next year.
“The success that Gevo is achieving in Northwest Iowa right now
is the result of the team of dedicated people who are working to
change the world by converting waste into useful energy, animal
bedding, and soil fertilizer,” says Dr. Chris Ryan, President and
Chief Operating Officer of Gevo, Inc. “These talented people have
been tasked with an important, complex job, and work every day to
identify issues, formulate solutions, and execute their plan to
achieve our goals. As this renewable energy supply becomes
reliable, the entire circular economy model can grow and prosper.
Supplying value added animal feed to dairies and to other animal
feed operations, capturing the manure, then converting the manure
to make RNG for use in the production of transportation fuels, more
animal feed, and later, jet fuel when our Net-Zero 1 plant
operates. This is an example of the circular economy in
action.”
“In addition to being good for us, California and the world, our
dairy partners are also expected to reap benefits from the RNG
Project over the long term,” Ryan said. “The manure digesters are
expected to improve the farms’ sustainability and lay the
groundwork for more efficient recycling of nutrients and better
soil health. It’s important that they share in the value,” Dr. Ryan
said.
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 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 RNG Project,
the ability of Gevo to realize production of RNG by the RNG
Project, Gevo’s ability to generate cash, revenue and Project
EBITDA from the RNG Project, use of RNG at Gevo’s Net-Zero 1
project, benefits to Gevo’s dairy partners, 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, 2021,
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.
Investor and Media ContactHeather L.
Manuel303-883-1114IR@gevo.com
1 Project EBITDA is a non-GAAP financial measure that we define
as total operating revenues less total operating expenses for the
project.
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