Gevo, Inc. (“Gevo”) (NASDAQ: GEVO), announces the concept of
Net-Zero Projects for the production of energy dense liquid
hydrocarbons using renewable energy and Gevo’s proprietary
technology. The concept of a Net-Zero Project is to convert
renewable energy (photosynthetic, wind, renewable natural gas,
biogas) from a variety of sources into energy dense liquid
hydrocarbons, that when burned in traditional engines, have the
potential to achieve net-zero greenhouse gas (GHG) emissions across
the whole lifecycle of the liquid fuel: from the way carbon is
captured from the atmosphere, processed to make liquid fuel
products, and including the end use (burning as a fuel for cars,
planes, trucks, and ships). Gevo announces that its project
currently planned to be constructed at Lake Preston, South Dakota
will be the first Net-Zero Project and will be named “Net-Zero 1.”
Gevo expects that Net-Zero 1 would have the capability to produce
liquid hydrocarbons that when burned have a “net-zero” greenhouse
gas footprint.
Net-Zero 1 is currently expected to have a capacity of 45MGPY of
hydrocarbons (for gasoline and jet fuel, based on current
take-or-pay contracts), to produce more than 350,000,000 pounds per
year of high protein feed products for use in the food chain, to
produce enough renewable natural gas to be self-sufficient for the
production process needs, and also to generate renewable
electricity with a combined heat and power system. Net-Zero 1 is
also expected to utilize wind energy.
Because of the low-carbon footprint feedstocks, the sustainable
agricultural practices used to produce feedstock, and the use of
renewable energy for the production processes, much of which is
expected to be generated on-site, the hydrocarbon fuel products
produced at Net-Zero 1 have the potential to achieve net-zero
greenhouse gas emissions as measured across the whole of the
lifecycle based on Argonne National Laboratory’s GREET model, the
pre-eminent science-based lifecycle analysis model. The GREET model
takes into account emissions and impacts "cradle to cradle" for
renewable resource-based fuels including: inputs and generation of
raw materials, agriculture practices, chemicals used in production
processes of both feedstocks and products, energy sources used in
production and transportation, and end fate of products, which for
fuel products is usually burning to release energy.
The capital cost for Net-Zero 1 is projected to be on the order
of $700M including the hydrocarbon production and related renewable
energy infrastructure which includes anaerobic digestion to produce
biogas to run our plant and generate some electricity on-site.
Citigroup is assisting Gevo in raising the necessary capital for
Net-Zero 1.
“This is not a new project but rather the first of the projects
that we have been working on with Citigroup to get financed. We are
naming our future projects Net-Zero to make clear the mission we
are on to reduce GHG emissions. By using carbon from the air as our
raw material source with its inherent low-carbon footprint,
sustainable agriculture, a combination of renewable energy obtained
from photosynthesis, wind, and biogas, we see that it is possible
to transform renewable energy into liquid hydrocarbon fuels that
work with combustion engines typical of cars, planes, and trucks
with the added benefit that these fuels have a net-zero carbon
footprint across the whole lifecycle. Think about it: it is
conceivable to eliminate tailpipe emissions from cars, planes and
trucks on a net GHG basis, while leveraging existing cars, planes,
and trucks on a full 'cradle to cradle' GHG basis. Our Net-Zero 1
Project isn’t just about capturing renewable energy and carbon, and
transforming it into liquid renewable energy; it’s also about
generating enormous quantities of protein, and nutrition for the
food chain. The high protein feed would be low-carbon footprint
too—and we are happy to help farmers raise beef, pigs, chicken, and
dairy in a way that lowers GHG emissions. We’ve got work to do to
make it all happen,” said Dr. Patrick R. Gruber, Chief Executive
Officer, Gevo. “We believe that there will be demand for additional
Net-Zero projects in the future,” Gruber continued.
About Gevo
Gevo has a mission to transform renewable energy into low-carbon
transportation fuels. This next generation of renewable premium
gasoline, jet fuel and diesel fuel with the potential to achieve
zero carbon emissions, addressing the market need of reducing
greenhouse gas emissions with sustainable alternatives. Gevo uses
low-carbon renewable resource-based carbohydrates as raw materials,
and is in an advanced state of developing renewable electricity and
renewable natural gas for use in production processes, resulting in
low-carbon fuels with substantially reduced carbon intensity (the
level of greenhouse gas emissions compared to standard petroleum
fossil-based fuels across their lifecycle). Gevo’s products perform
as well or better than traditional fossil-based fuels in
infrastructure and engines, but with substantially reduced
greenhouse gas emissions. In addition to addressing the problems of
fuels, Gevo’s technology also enables certain plastics, such as
polyester, to be made with more sustainable ingredients. Gevo’s
ability to penetrate the growing low-carbon fuels market depends on
the price of oil and the value of abating carbon emissions that
would otherwise increase greenhouse gas emissions. Gevo believes
that its proven, patented, technology enabling the use of a variety
of low-carbon sustainable feedstocks to produce price-competitive
low carbon products such as gasoline components, jet fuel, and
diesel fuel yields the potential to generate project and corporate
returns that justify the build-out of a multi-billion-dollar
business.
Gevo believes that Argonne National Laboratory GREET model is
the best available standard of scientific based measurement for
life-cycle inventory or LCI.
Learn more at our website: www.gevo.com
Forward-Looking Statements
Certain statements in this press release may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements relate to a variety of matters, including, without
limitation, statements related to Gevo’s Net Zero Projects, Gevo’s
Net-Zero 1 Project, Gevo’s plans and strategy, Gevo’s ability to
achieve reductions in GHG emissions in the production of its liquid
fuel products, the ability of Gevo’s liquid hydrocarbon fuel
products to be dropped into existing supply chains and
infrastructure, the Citigroup finance process, Gevo’s ability to
raise capital to fund its projects, Gevo’s ability to produce its
products, Gevo’s ability to realize revenue from its proposed
projects, and other statements that are not purely statements of
historical fact. These forward-looking statements are made on the
basis of the current beliefs, expectations and assumptions of the
management of Gevo and are subject to significant risks and
uncertainty. Investors are cautioned not to place undue reliance on
any such forward-looking statements. All such forward-looking
statements speak only as of the date they are made, and Gevo
undertakes no obligation to update or revise these statements,
whether as a result of new information, future events or otherwise.
Although Gevo believes that the expectations reflected in these
forward-looking statements are reasonable, these statements involve
many risks and uncertainties that may cause actual results to
differ materially from what may be expressed or implied in these
forward-looking statements. For a further discussion of risks and
uncertainties that could cause actual results to differ from those
expressed in these forward-looking statements, as well as risks
relating to the business of Gevo in general, see the risk
disclosures in the Annual Report on Form 10-K of Gevo for the year
ended December 31, 2019, and in subsequent reports on Forms 10-Q
and 8-K and other filings made with the U.S. Securities and
Exchange Commission by Gevo.
Investor and Media ContactIR@gevo.com
+1 720-647-9605
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