Gevo Provides Update Of RNG, SAF Projects
Gevo Inc. releases Q1 results: RNG project operates at 89% capacity, pursuing DOE loan guarantee for SAF project. Plans alcohol-to-jet project in South Dakota. RNG sales reach 88,967 MMBtu. Verity Carbon Solutions expands customer base, signs partnerships. Ethanol-to-olefins pilot project progresses. Q1 loss: $23.1M from operations, non-GAAP cash EBITDA loss: $14.5M, net loss per share: 8 cents.
Gevo Inc. released first quarter results on May 2, reporting that the company’s renewable natural gas (RNG) project operated at approximately 89% of capacity during the three-month period and that efforts continue to secure a U.S. Department of Energy loan guarantee for the company’s proposed sustainable aviation fuel (SAF) project.
During a first quarter earnings call, Gevo President and Chief Operating Officer Chris Ryan said work on the DOE loan guarantee is going well, noting that the application process requires significantly more engineering and upfront risk mitigation than more typical balance sheet financing. “Our EPC partners are busy working with us to mitigate execution risk and ensure our contracts fit the DOE’s loan guarantee requirements,” he said. “Likewise, our off-take partners are working with us to ensure that the contracted demand fist with the requirements of a DOE loan guarantee to financing the construction phase.”
Gevo currently plans to develop its first alcohol-to-jet project in Lake Preston, South Dakota. That facility, referred to as Net Zero 1, would be connected to a proposed carbon pipeline project. Ryan indicated that the location of Net Zero 1 could be moved if the carbon pipeline project fails to be developed.
The Lake Preston site, in part, is an attractive location due to the proximity of Gevo’s wholly owned RNG project in Iowa, Ryan said. The use of RNG at Net Zero 1 would allow the carbon intensity (CI) of the SAF produced at the project to be reduced. Other factors that make the Lake Preston site attractive include the location’s rail access for product distribution and proximity to the Minneapolis and Chicago airports.
Gevo reported that its RNG business old 88,967 MMBtu of RNG during the first quarter. The project has an annual capacity of 400,000 MMBtu.
The company also provided an update of its Verity Carbon Solutions business, which is a wholly owned subsidiary focused on carbon accounting. Gevo said the Verity business continued to increase its customer base at the farm/field level during the first quarter and initiated the first privately sponsored grower program for a biofuel client in the Midwest. Verity also signed a letter of intent with a provider of heavy-duty vehicle engines to develop carbon-counting solutions to demonstrate the client’s improved environmental performance.
In addition, Gevo provided an update on the development of its ethanol-to-olefins (ETO) technology, noting that the company launched a pilot project at a third-party facility in Crosby, Texas, during the first quarter, which has delivered the results required to move to the next phase scale-up under the company’s agreement with LG Chem Ltd.
Gevo reported a loss from operations of $23.1 million for the first quarter, and a non-GAAP cash EBITDA loss of $14.5 million. Net loss per share was 8 cents.
Source Link : https://ethanolproducer.com/articles/gevo-provides-update-of-rng-saf-projects
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