Gevo reports 15-fold increase in revenue to $4.5m
Gevo, a renewable chemicals and advanced biofuels company, reported revenue of $4.5m in the third quarter of 2023, up 15-fold from the same period last year. The increase was driven by higher sales of renewable natural gas (RNG) and related environmental attributes.
Commenting on RNG, Dr. Patrick Gruber, CEO, Gevo said: “The combined three dairy farms, connected by pipeline to our gas upgrading and injection site, capture the methane emissions from cow manure and convert them into a drop-in replacement for fossil natural gas.”
“We are on track to meet our annual production goal of more than 310,000 MMBtu, and prove capacity of the system of 400,000 MMBtu per year by year end.”
RNG is a clean-burning fuel that is produced from methane emissions from cow manure. It is a drop-in replacement for fossil natural gas, meaning it can be used in the same infrastructure without modification.
Gevo operates an RNG facility in Iowa, and it recently expanded its nameplate capacity from 355,000m British thermal units (MMBtu) to 400,000 MMBtu per year.
“Sales under our RNG project commenced in the 3Q 2022, and only included RNG sales during the ramp up period. During the three months ended September 30, 2023, we sold 81,271 MMBtu of RNG from our RNG project, resulting in revenue realized of $4.5m,” said the company.
In the third quarter, Gevo sold 81,271 MMBtu of RNG, resulting in revenue of $4.5m. The company is currently selling RNG to the on-road transportation market, and it plans to use RNG to produce sustainable aviation fuel (SAF) once its SAF plants are completed.
Gevo’s third quarter operating loss was $20.7m, a sharp reversal from the $44m loss it reported in the same quarter last year. The improvement was due in part to a $24.7m impairment loss that the company booked last year.
Gevo also reported interest and investment income of $5.3m in the third quarter, up from $0.2m in the same period last year. The increase was due to higher interest rates.
Overall, Gevo reported a net loss of $15.7m in the third quarter.
