Story ID: 
Gevo Strengthens SAF Project Funding
By: Curt Epstein
Caption: Gevo's latest round of stock issuance was aimed at helping the company stabilize its financing demands for its Net Zero-1 sustainable fuel project.
Word Count: 226
Sustainable fuel producer Gevo has concluded a stock offering that it believes will provide the funding required to construct its Net Zero-1 (NZ1) production facility. Given the forecasts of a possible recession and the generally poor market outlook, the company’s directors made the decision to raise capital to ensure, as far as possible, that it can complete the projects even in the absence of external financing.

“While this has been a productive quarter and year-to-date, the financial markets have been chaotic,” said CEO Patrick Gruber. “Our recent decision to raise equity was made to ensure Gevo’s balance sheet could withstand the challenging financial markets that we expect over the next two years.”

Gevo currently has offtake agreements in place for more than 200 million gallons per year (MGPY), worth approximately $1.2 billion in sales, with the initial deliveries of sustainable aviation fuel (SAF) to take place in 2025. Gruber noted that as demand from the aviation industry continues to outstrip supply, that should present opportunities for early movers such as Gevo to establish additional partnerships.

By year-end, the company expects to close on the purchase of land in Lake Preston, South Dakota, and break ground on NZ1, which is expected to produce 55 MGPY of SAF or 62 MGPY of total hydrocarbon fuels. Gevo is currently identifying additional SAF production locations.