Gevo’s Net-Zero 1 Project Nears Completion

Gevo (NASDAQ:GEVO) announced on Wednesday that the engineering work for its Net-Zero 1 ethanol-to-jet project is substantially complete. The company is now in the “diligence phase” of the U.S. Department of Energy loan guarantee program to secure construction funding.

Furthermore, Gevo (GEVO) has begun ordering long-lead equipment for the project, which involves the construction of a 65M gallon per year sustainable aviation fuel production facility in South Dakota. This facility is expected to not only produce sustainable aviation fuel but also other hydrocarbons and approximately 1.5 billion pounds per year of “high-value nutritional products.”

As of now, Net-Zero 1 is in the “value engineering phase in preparation for finalizing the fully installed contracted price,” and the company has substantially negotiated its contract with McDermott(OTC:MCDIF), except for the contracted construction price.

Gevo (GEVO) also mentioned that it anticipates the first revenue from its Verity end-to-end carbon accounting solution SaaS software business to materialize in 2024. Additionally, it has outlined plans to “pursue scalable customer growth in 2025.”

Finally, the company projected non-GAAP cash EBITDA of $7-16 million in 2024, which depends on the timing of the approval of the permanent CARB Carbon Intensity pathway. This forecast could increase if California Low Carbon Fuel Standard prices rise and the Biogas Production Tax Credit is implemented.