Gevo moving forward with Net-Zero 1 development

In South Dakota, following Gevo’s groundbreaking ceremony in September 2022, progress continues at the Lake Preston, South Dakota, Net-Zero location. FEED work is substantially complete and detailed engineering continues. Equipment procurement is expected to begin soon and detailed planning for this year’s construction ramp up has commenced. The project remains on schedule for a 2025 operational startup.

Gevo recently selected a partner as its engineering, procurement, and construction contractor for NZ1. That firm provides the expertise required for the Net-Zero plant design and construction. This firm also offers deep experience in the energy industry and a collaborative nature to work with the Gevo engineering team in the design and buildout of the net-zero production facility. Gevo is currently negotiating an EPC agreement with this firm and will disclose more details when the contract is finalized.

Gevo is in discussions with multiple strategic and financial entities that are interested in providing equity funding for a portion of the NZ1 project. The progression of these discussions and the debt raise process will guide the timing for financial close and Final Investment Decision (“FID”) for NZ1, which the company expects to occur in the second half of 2023. Until financial close, it will use its balance sheet to fund EPC activities. At the invitation of the Department of Energy, Gevo have submitted a Part II application to the DOE’s Title 17 loan guarantee program and have begun the DOE’s loan guarantee process. This process could take several months as the DOE Loan Programs Office performs due diligence on the project, structures the potential loan and negotiates terms with Gevo prior to the loan closing process. The timeline for this process is not within Gevo’s control; however, the more favorable terms of these loans warrant pursuing a DOE loan guarantee simultaneous with Gevo’s pursuit of non-recourse debt with commercial debt fund lenders.