Gevo Says Goodbye to Fossil-Based Electricity at Luverne Facility
March 12 2020 - 9:00AM
Gevo, Inc. (NASDAQ: GEVO) and partners Juhl Energy (Juhl) and
Harrison Street Investors held a ribbon cutting ceremony to
celebrate the completed construction of two wind turbines that will
supply up to 5.0 MW of fully renewable electricity to Gevo
subsidiary Agri-Energy’s production plant located in Luverne, MN.
The electricity generated from wind will be wired directly to
Agri-Energy, which is expected to enable it to utilize the
emissions-free energy towards a lower carbon intensity score under
the Low Carbon Fuel Standard in California. The wind electricity is
expected to be on-line and available to Agri-Energy in April.
In connection with the wind project, Agri-Energy invested $1.5
million in the Series A preferred stock of Juhl’s asset subsidiary
Juhl Clean Energy Assets (JCEA). Juhl, Harrison Street and other
JCEA investors funded the remainder of the approximate $8.75
million project cost. Juhl will be the owner and operator of the
wind project. Agri-Energy has agreed to purchase the electricity
from the City of Luverne and will also purchase the Renewable
Energy Credits associated with the wind project from an affiliate
of Juhl.
“We are on a crusade to defossilize our business system,
eliminating greenhouse gasses, and because of that, we expect to
improve our margins,” said Patrick Gruber, CEO of Gevo. “The wind
energy produced from these towers will help to take us off the
fossil grid. It's a great first step, setting up our infrastructure
for jet fuel and renewable gasoline.”
“This project is a great example of the local
community and business working together to use renewable energy to
increase its competitiveness,” said John Mitola, CEO of Juhl. “We
applaud Gevo’s leadership and expect to see increasing interest
from the biofuel industry in projects such as wind and other clean
energy projects that we can assist with to lower carbon
intensity.”
“We are thrilled to expand our renewable energy
investment footprint,” said Carolyn Arida, Director & Head of
Utilities of Harrison Street. “We look forward to our continued
partnership with Juhl and Gevo, two companies that continue to
innovate and lead with their decarbonization and sustainability
efforts.”
A special thanks to all who have helped to make this project
possible, including: local landowners, City of Luverne, Rock
County, Faith Technologies, First Farmers and Merchants Bank,
Missouri River Energy Services, and GE.
About GevoGevo is commercializing the next
generation of jet fuel, gasoline and diesel fuel with the potential
to achieve zero carbon emissions and address 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. As a result, Gevo is able to produce low-carbon fuels
with substantially reduced carbon intensity (as measured by 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
environmental problems of fossil-based carbon 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 that enables the use of a variety of low-carbon
sustainable feedstocks to produce price-competitive, low carbon
products, such as jet fuel, gasoline components like isooctane and
isobutanol 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 www.gevo.com.
About Juhl EnergyJuhl Energy is an
established leader and pioneer in the renewable energy industry
with a focus on competitive, clean energy solutions, including
wind, solar, hybrid systems and combined heat and power projects
designed for rural communities, municipal electric companies, and
industrial companies throughout the United States. Juhl Energy
has completed over 28 projects, accounting for over 350 MW’s of
power. Juhl services every aspect of development from general
consultation, engineering, construction and management, to system
operations and maintenance. Juhl Energy is headquartered in
Chanhassen, MN, and has other offices in Chicago, and
Milwaukee.
About Harrison StreetHarrison
Street is one of the leading investment management firms
exclusively focused on alternative real assets. Since inception in
2005, the firm has created a series of differentiated investment
solutions focused on demographic-driven, needs-based assets. The
firm’s social infrastructure strategy pursues opportunities to
service universities, health systems, government and long-term
users as sustainability, decarbonization and resiliency trends
increase the need for capital solutions in the space. Headquartered
in Chicago with an office in London, the firm has more than
150-employees and approximately $24.8 billion in assets under
management. Clients of the firm include a global institutional
investor base domiciled in North America, Europe and Asia.
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 successful completion of the renewable wind project on
the timing anticipated or at all, Gevo’s ability to de-fossilize
the plant in Luverne, Minnesota, Gevo’s success in improving its
margins, Gevo’s success in claiming the benefit of a lower carbon
intensity score under the Low Carbon Fuel Standard in California
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 Contact Shawn M. Severson Integra Investor
Relations +1 415-226-7747 info@integra-ir.com
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/b49220e1-a1ff-47d8-9896-5126229a96ed
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