Gevo withdraws from US DOE financing process

Gevo Inc. announced April 15 the company’s withdrawal of its loan-guarantee financing application with the U.S. DOE Office of Energy Dominance Financing, formerly known as the Loan Programs Office.

The company said it is now developing other funding opportunities to meet the goal of financing its alcohol-to-jet (ATJ)-30 plant by end of 2026.

Gevo withdrew its application April 15 following “a conversation with EDF in which it was clear the business objectives EDF required—that the project support enhanced oil recovery (EOR)—are not yet commercially viable at scale in the project area, and that there are opportunities for alternative financing better aligned with company strategy that can accelerate the timeline for project execution with improved returns,” Gevo stated.

The withdrawal, according to Gevo, allows the company the opportunity to resubmit an application for a project at a later date, if desired.

Gevo previously received a conditional commitment from EDF to guarantee a loan for its ATJ-60 sustainable aviation fuel (SAF) project formerly known as Net-Zero 1 in Lake Preston, South Dakota.

The company had been working with EDF to transition the conditional commitment to its ATJ-30 project to be located at its recently acquired ethanol facility in Richardton, North Dakota.

Gevo said it intends to continue its efforts on ATJ-30 in Richardton “as the project remains in line with overall company strategy and timeline for execution.”

That facility includes low-carbon ethanol production, and carbon capture and geological carbon-sequestration capabilities, which are beneficial for cost-effective ATJ production, the company noted.

“Over the past year, we have substantially de-risked our position in low-carbon ethanol required for our ATJ and we believe we are in a better position to secure alternative financing that allows us to pursue the most accretive business case in alignment with company strategy and timelines,” said Gevo CEO Paul Bloom. “We firmly believe that the Gevo North Dakota facility is one of the best sites in the U.S., in a pro-agriculture and pro-energy state and with local farmers who continue to increase productivity year after year. Gevo North Dakota is already cash-generating and has the capability to further grow Gevo’s adjusted EBITDA, providing the economic foundation for ATJ expansion and a steppingstone for Gevo’s franchise-development strategy for SAF and other fuels and chemicals.”