Gevo to celebrate Net Zero 1 groundbreaking in September

Gevo Inc. plans to host a groundbreaking ceremony in September to kick off the initial site work phase at its proposed Net Zero 1 facility under development in Lake Preston, South Dakota, according to comments made by CEO Patrick Gruber during a second quarter earnings call held Aug. 8.

The proposed Net Zero 1 facility will have the capacity to produce 62 MMgy of low-carbon fuels, including 55 MMgy of sustainable aviation fuel (SAF).  

Gevo closed on the purchase of a 245-acre site for the project in July. Gruber said the company expects to order long-lead equipment for the facility during the fourth quarter of this year and close its design, build, own, operate and manage (DBOOM) contracts for wind power and green hydrogen. 

Gruber noted that a final investment decision and financial close on the debt component of the project is expected to occur around mid-2023. “We expect to have one or more equity partners in the project at that time, which preserves Gevo capital for the NZ program development,” he added.

Gruber also discussed Gevo’s renewable natural gas (RNG) project in Iowa. He said all three of the dairy digesters are now producing biogas. That gas is being upgraded and injected into the sales pipeline where the sales are managed by BP, Gruber said.

In its second quarter report, Gevo highlighted several recently announced SAF sales agreements, including those signed with Japan Airlines, Finnair, Aer Lingus, American Airlines and Alaska Airlines. The company now has more than 350 million gallons per year of financeable SAF and hydrocarbon fuel supply agreements.

Gevo reported revenue of $100,000 for the second quarter, compared to $300,000 reported for the same period of last year. Loss from operations was $16.1 million, compared to a loss of $19.1 million reported for the second quarter of 2021.