Gevo, an advanced biofuels producer, said Wednesday that the engineering work for Net-Zero 1 Development is substantially complete and it is in the “diligence phase” of the Department of Energy loan guarantee program to secure funding for the construction of the ethanol-to-jet project.
In a wide-ranging business update announcement, Gevo said it is also ordering long-lead equipment for Net-Zero 1 Development, a 65 million gal/year sustainable aviation fuel production facility in South Dakota that is currently under construction. The plant is also expected to produce other hydrocarbons and about 1.5 billion pounds of “high-value nutritional products on a wet basis annually,” Gevo said.
In August 2023, the Colorado-based company said Net-Zero 1 has advanced to the next phase for a $950 million loan guarantee under the Title 17 Clean Energy Financing Program. At that time, Gevo said that DOE stated that the project has the potential to join its portfolio of loans.
“We expect the DOE loan guarantee program process to be the rate limiting step to financial close. We have also identified attractive sites for additional Net-Zero plants,” Gevo said Wednesday, without further elaboration.
Gevo also said Net-Zero 1 is in the “value engineering phase in preparation for finalizing the fully installed contracted price,” and its contract with McDermott — an oil and gas-focused engineering firm — has been “substantially negotiated” except for the contracted construction price.
Regarding Verity, Gevo’s end-to-end carbon accounting solution SaaS software business, Gevo said it expects to report its first revenue in 2024 and to “pursue scalable customer growth in 2025.”
In addition, Gevo said its ethanol-to-olefins technology pilot plant has started production and is operating as expected.
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Originally shared by Frank Tang and Michael Kelly, Market Watch, January 24, 2024. Title updated January 26, 2024 for clarity and purpose.