Addition of New Director
Gevo recently announced that its Board of Directors has appointed
Net-Zero 1 Status
Following Gevo’s groundbreaking ceremony in
Gevo recently selected a partner as its engineering, procurement, and construction (“EPC”) contractor for NZ1. That firm provides the expertise required for the Net-Zero plant design and construction. This firm also offers deep experience in the energy industry and a collaborative nature to work with the Gevo engineering team in the design and buildout of the net-zero production facility. Gevo is currently negotiating an EPC agreement with this firm and will disclose more details when the contract is finalized.
We are in discussions with multiple strategic and financial entities that are interested in providing equity funding for a portion of the NZ1 project. The progression of these discussions and the debt raise process will guide the timing for financial close and Final Investment Decision (“FID”) for NZ1, which we expect to occur in the second half of 2023. Until financial close, we will use our balance sheet to fund EPC activities. At the invitation of the
Progress on Key Development Milestones
Accomplished Through year-end 2022:
- Close the purchase of the land for NZ1 in
Lake Preston, South Dakota - Execute NZ1 Carbon Capture and Sequestration agreement
- Reach indicative terms on DBOOM development agreements for:
- NZ1 Wind energy
- Green hydrogen
- Select NZ1 engineering, procurement, and construction (“EPC”) contractor
- Select NZ1 fabricator for hydrocarbon plant modules
- Substantial Completion of NZ1 Front-End Engineering Design
- Break ground and begin site preparation for NZ1 at
Lake Preston
Through year-end 2023:
- Begin ordering long lead equipment for NZ1
- Execute NZ1 lump-sum turnkey EPC contract
- Complete final negotiations with
U.S. Department of Agriculture and initiate Gevo’sClimate-Smart Farm -to-Flight grant with an award ceiling of up to $30MM - Begin receiving Low Carbon Fuel Standard (“LCFS”) credits for renewable natural gas (“RNG”) production
- Close NZ1 construction financing, including non-recourse debt and equity participation from one or more third parties
- FID for NZ1
- Finalize Net-Zero 2 location and partners
Throughout 2023, Gevo expects to update stockholders about certain key milestones related to the development, financing, and construction of NZ1 as well as subsequent Net-Zero plants. Updates to those milestones will be found in the Company’s press releases and investor presentations in the Investor Relations section of Gevo’s website.
Additional
Gevo continues to make steady progress on securing future SAF production locations beyond NZ1. These future sites must offer an appealing mix of attributes that enable the Company to produce low-cost fuels with the lowest carbon footprint possible. Gevo has signed agreements and letters of intent with multiple parties to secure access to several sites. In addition to greenfield sites, we believe that there are several existing ethanol plants that could be attractive for an alcohol-to-jet (ATJ) plant that would be largely copied from NZ1.
Renewable Natural Gas Project Status
Gevo’s RNG project in
Management Comment
Dr.
Upcoming Investor Conferences
Presentations provided in conjunction with these events will be available on Gevo's website at www.gevo.com in the Investor Relations section on the morning of the respective presentation. Members of Gevo’s senior management will participate in the following hosted investor events:
Credit-Suisse 28th Annual Vail Summit– February 27 & 28, 2023, in
About
Gevo’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 potential to yield net-zero greenhouse gas emissions when measured across the full lifecycle 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 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 it possesses the technology and know-how to convert various carbohydrate feedstocks through a fermentation process into alcohols and then transform the alcohols into renewable fuels and materials, through a combination of its own technology, know-how, engineering, and licensing of technology and engineering from
Gevo believes that Argonne National Laboratory GREET model is the best available standard of scientific based measurement for life cycle inventory or LCI.
Important Cautions Regarding Forward Looking Statements
Certain 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, Gevo’s NZ1 project, including the timing of financing, FID and other milestones for NZ1, Gevo’s other potential Net-Zero projects, Gevo’s application to the
Company Contact:
Tel: 720-360-7794
E-mail: jrichardson@gevo.com
Source:
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