Gevo expands scope of proposed Net Zero 1 project

Patrick Gruber, CEO of Gevo Inc., provided an update of the company’s proposed Net Zero 1 biorefinery during a second quarter earnings call held Aug. 12. The company is expanding the scope of the facility, he said.

Gevo’s Net Zero 1 facility is under development near Lake Preston, South Dakota. Once operational the facility will produce renewable jet fuel and gasoline.

Gruber said hydrocarbon capacity at the plant is already sold out and noted the company has decided to slightly change the scope of the project. “We have added capacity for increased amounts of isobutanol,” he said. Gevo plans to sell the additional 44 million pounds per year of isobutanol production as a specialty chemical.

In addition, Gruber said Gevo plans to increase the production of nutritional products, such as protein and animal feed, to 340 million pounds, up 40 million pounds from originally proposed. Hydrocarbon production capacity is also being increased from 45 MMgy to 46 MMgy. In addition, the facility will produce an estimated 30 million pounds of corn oil.

The biorefinery is expected to feature onsite biogas production, which will be used to meet thermal demand for the plant. A sperate, but related, wind power project is under development to meet the majority of Net Zero 1 electricity demand, according to Gruber. The site is also expected to include production capacity for green hydrogen.

Gruber also discussed Gevo’s renewable natural gas (RNG) project, which is under development in Iowa. He said the project is on track in terms of construction and is expected to begin producing gas early next year.

Gevo reported $400,000 of revenue for the second quarter, down from $1 million in the same period of last year. Gross loss was $2.4 million, compared to a gross loss of $1.7 million during the second quarter of 2020. Net loss was $18.3 million, compared to a net loss of $6 million reported during the same period of last year.