Gevo’s Net-Zero 1 Project Secures $1.46b DOE Loan Guarantee Commitment

Gevo, Inc., a leader in developing net-zero hydrocarbon fuels and chemicals, has announced it has secured a conditional commitment for a $1.46 billion loan guarantee from the U.S. Department of Energy’s (DOE) Loan Programs Office (LPO) to support its Net-Zero 1 (NZ1) project in Lake Preston, South Dakota. Including capitalized interest during construction, the loan facility has a borrowing capacity of $1.63 billion.

The NZ1 facility will utilize 100% U.S.-sourced feedstocks and is expected to produce approximately 60 million gallons of sustainable aviation fuel (SAF) annually. Additionally, it will yield around 1.3 billion pounds of protein and animal feed products, along with 30 million pounds of corn oil each year. The facility is designed to create SAF with a net-zero carbon footprint across its lifecycle, even when factoring in the fuel's use. Gevo's SAF projects are expected to accelerate climate-smart agricultural practices, boost rural job creation, and enhance domestic energy security.

NZ1 is the first large-scale alcohol-to-jet (ATJ) project to receive a DOE LPO conditional commitment, marking a significant milestone for both Gevo and South Dakota. The project is poised to create new opportunities for local workers, farmers, and residents. Gevo’s CEO, Dr. Patrick Gruber, emphasized that this commitment represents a crucial step in the company’s mission to transform the aviation industry by providing scalable, sustainable, renewable jet fuel. He noted that the DOE’s thorough due diligence work reduces execution risk for the project and should attract further capital investments to commercialize SAF production.

Lindsay Fitzgerald, Gevo’s Senior Vice President of Public Affairs, highlighted the project's economic significance, stating that NZ1 is the largest economic development initiative in South Dakota’s history. The project is expected to stimulate economic growth, create jobs, and offer new opportunities for the region's agricultural community and beyond.

A report by Charles River Associates projects that NZ1 will generate significant economic and climate benefits, including over 1,300 indirect jobs during construction and 100 permanent jobs at the facility. The broader impact across agriculture, manufacturing, and transportation is expected to generate an annual economic impact of over $100 million. Gevo aims to use this project as a template for future net-zero initiatives, potentially speeding up SAF commercialization.

Gevo’s subsidiary, Verity Holdings, LLC, will track and verify the sustainability and carbon intensity of its products. While the DOE’s conditional commitment marks progress, Gevo must meet several technical, legal, and financial conditions before finalizing the loan guarantee.

Gevo's mission is to transform renewable energy and biogenic carbon into sustainable fuels and chemicals with a net-zero or lower carbon footprint. Using its innovative technology, Gevo can produce a range of products, including sustainable aviation fuel (SAF), motor fuels, chemicals, and other materials. The company’s business model involves the development, financing, and operation of production facilities for these renewable products. Gevo currently operates one of the largest dairy-based renewable natural gas (RNG) facilities in the U.S. and owns the world’s first specialty ATJ fuel and chemical production facility. Committed to sustainability, Gevo tracks and verifies the carbon footprint of its systems through its Verity subsidiary.