Gevo Breaks Ground on Its First Commercial-Scale Sustainable Aviation Fuel Facility, Net-Zero 1, in Lake Preston, South Dakota
September 15 2022 - 4:05PM
Gevo, Inc. (NASDAQ: GEVO) is pleased to announce the groundbreaking
of its first commercial-scale sustainable aviation fuel (SAF)
facility, Net-Zero 1 (NZ1). Gevo’s management team was joined today
by government officials, representatives from partner companies and
customers, business leaders, local farmers, and members of the
media to ceremoniously break ground.
The NZ1 project is expected to employ 1,000 people
during the construction phase with approximately 90 full-time
employees once operational. The facility will be constructed on 245
acres, very favorable for producing low-carbon SAF with site
preparation beginning now and official construction expected to
begin in 2023.
“This is an important milestone that our team has
worked hard to achieve,” said Dr. Patrick Gruber, Gevo’s Chief
Executive Officer. “Building production facilities like Net-Zero 1
that will use de-fossilized energy, create a business system that
rewards sustainability improvements and is equitable for all
parties in the value chain is important to us. As all the elements
come together, from farmers growing sustainable corn feedstock, to
renewable wind power and renewable natural gas providing
electricity and thermal energy for the facility, to the high-value
nutrition products, corn oil, and sustainable aviation fuel leaving
the gate, we expect to see our circular economy in action,
increasing the sustainability of every product we make while
simultaneously reducing the impact of fossil fuels.”
“South Dakota provides all the elements for success
required for our first commercial facility, but we’re actively
working to identify and develop our second site since we have
supply offtake agreements that require additional capacity beyond
Net-Zero 1,” said Dr. Chris Ryan, President and Chief Operating
Officer “As we build our production capacity to meet our supply
obligations, we know these projects also deliver value to local
farmers and communities. We’re excited to move forward and provide
that value,” added Dr. Ryan.
The associated wind energy project that will
provide electricity to the facility is in development. Plans for
the site also incorporate green hydrogen produced from water and
renewable natural gas. Net-Zero 1 will show the world that the
leading edge of the energy transition is in the heartland of
America, where farmers and facility technicians come together with
airline customers, investors, and many others to lead the way
forward.
This project schedule is expected to allow Gevo to
begin delivery of initial volumes of SAF in 2025 to fulfill a
portion of existing supply agreements. Net-Zero 1 is expected to
produce 55 MGPY of SAF, or 65 MGPY of total hydrocarbon
volumes.
In 2023, Gevo expects to close the construction
financing for the NZ1 project and begin construction of NZ1.
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 the 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 StatementsCertain
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, without limitation, including Gevo’s ability to
develop, finance, construct and operate commercial production
facilities to produce SAF, including Net-Zero 1 in Lake Preston,
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.
Media ContactHeather L.
Manuel+1 303-883-1114IR@gevo.com
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