Gevo secures biogas supply and receives commitment letter for financing
January 15 2020 - 9:00AM
Gevo, Inc. (NASDAQ: GEVO) (the “Company”)
announced today that it has contracted with three dairies to
provide manure that the Company will convert into pipeline quality
biogas (“Renewable Natural Gas”). Combined, these three dairies
expect to generate approximately 350,000 MMBTU biogas per year for
sale to off-takers or use by the Company’s affiliate, Agri-Energy,
LLC, at its advanced biofuel production facility located in
Luverne, Minnesota (the “Luverne Facility”).
The quest of the Company is to reduce and eliminate the fossil
footprint caused by running the Luverne facility. These biogas
contracts, in conjunction with wind power, should enable any
biofuel produced at the Luverne facility to have a lower carbon
intensity score as well as an increased value.
Currently, the Company has a letter of commitment from a lender
in the amount of $20 million for financing the Renewable Natural
Gas project at one of the three dairies. In addition, the
Company also has a verbal commitment from the same lender to
finance the Renewable Natural Gas projects at the other two
dairies. The financing includes capital for the anaerobic
digesters, the biogas collection and upgrading system, as well as
the utility interconnection system.
"These three dairy farms represent what I envisioned as Phase 1
of the biogas cluster consisting of 8-10 total farms once the
system is fully built out," said Patrick R. Gruber, Chief Executive
Officer of the Company. "We aim to change mindsets by demonstrating
you can change waste from being a pollution problem to a renewable
energy solution in the liquid fuels market."
About GevoGevo is commercializing the next
generation of gasoline, jet fuel, and diesel fuel with the
potential to achieve zero carbon emissions, addressing the market
need of reducing greenhouse gas emissions with sustainable
alternatives. 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 lifecycle). 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. Learn more at our
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, including, without limitation, statements related to the
Company’s ability to convert manure into Renewable Natural Gas, the
Company’s ability to reduce the carbon intensity of its operations,
the Company’s ability to successfully construct the digesters on
the timing anticipated or at all, the Company’s ability to finance
its biogas projects and its ability to complete the Live Oak Bank
financing on the timing anticipated or at all, the Company’s
ability to own the completed biogas project, 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, 2018
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 ContactShawn M. SeversonIntegra Investor
Relations+1 415-226-7747info@integra-ir.com
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