Gevo withdraws DoE financing application

Renewable fuels producer Gevo announced withdrawal of of its loan guarantee financing application with the US Department of Energy (DOE) Office of Energy Dominance Financing (EDF).

The company said it is developing other funding opportunities to meet its goal of financing the company’s alcohol-to-ket (ATJ)-30 plant by end of 2026.

Gevo said the EDF’s business objectives required that the project supports enhanced oil recovery (EOR) which the company said is not yet commercially viable at scale in the project area, and that there are opportunities for alternative financing better aligned with company strategy that can accelerate the timeline for project execution with improved returns.

The withdrawal affords Gevo the opportunity to resubmit an application for a project later.

Gevo previously received a conditional commitment from EDF to guarantee a loan for its ATJ-60 synthetic aviation fuel (SAF) project in Lake Preston, South Dakota.

The facility includes low-carbon ethanol production, and carbon capture and geological carbon sequestration capabilities, which are beneficial for cost-effective ATJ production.

“Over the past year, we have substantially derisked our position in low-carbon ethanol required for our ATJ and we believe we are in a better position to secure alternative financing that allows us to pursue the most accretive business case in alignment with company strategy and timelines,” said Paul Bloom, chief executive officer, Gevo.

“GND is already cash-generating and has the capability to further grow Gevo’s Adjusted EBITDA, providing the economic foundation for ATJ expansion and a steppingstone for Gevo’s franchise development strategy for SAF and other fuels and chemicals.”