DENVER, Colo., Oct 17, 2024 (247marketnews.com)- Gevo (NASDAQ: GEVO) stated that it received a conditional $1.46 billion loan guarantee commitment from the U.S. Department of Energy (“DOE”) Loan Programs Office (“LPO”) for its Net-Zero 1 project (“NZ1”) in South Dakota.
The Lake Preston, South Dakota NZ1 facility will use 100-percent U.S.-sourced feedstocks to produce approximately 60 million gallons of sustainable aviation fuel (“SAF”) from approximately 1.3 billion pounds of protein and animal feed products, and approximately 30 million pounds of corn oil per year.
This is the first-large-scale alcohol-to-jet (“ATJ”) project to receive a DOE LPO conditional commitment.
Dr. Patrick Gruber, Gevo’s CEO, stated, “This marks a watershed moment for the Net-Zero 1 project and a critical step forward in Gevo’s mission to transform the aviation industry by providing a scalable, sustainable, and economical renewable-carbon-based jet fuel—SAF.
“This valuable commitment to help finance NZ1, if finalized, should also attract other capital investments to unlock SAF commercialization given the robust due diligence conducted by the agency. The due diligence work by the DOE has been incredibly detailed and thorough, and the benefit is a substantially reduced execution risk profile for the project. We are grateful for the support from the Department of Energy’s Loan Programs Office.”
Lindsay Fitzgerald, Gevo’s Senior VP of Public Affairs, added, “We expect that NZ1 will kickstart new growth in the economy, create jobs, and present additional opportunities for the agricultural community in the region around Lake Preston, across South Dakota, and even reaching other states.”
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