Gevo announces withdrawal from DOE financing process

Gevo (GEVO) announced Wednesday the company’s withdrawal of its loan guarantee financing application with the U.S. Department of Energy Office of Energy Dominance Financing and is developing other funding opportunities to meet its goal of financing the company’s Alcohol-to-Jet-30 plant by end of 2026. Gevo withdrew its application today following a conversation with EDF in which it was clear the business objectives EDF required-that the project support enhanced oil recovery-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. The withdrawal affords Gevo 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 synthetic aviation fuel project in Lake Preston, South Dakota. Gevo had been working with EDF to transition the conditional commitment to its ATJ-30 project to be located at its newly acquired Gevo North Dakota facility in Richardton, North Dakota. Gevo intends to continue its efforts on ATJ-30 at GND 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. “Over the past year, we have substantially derisked 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. We firmly believe that the GND 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,” said Paul Bloom, Gevo CEO. “GND 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.”