Gevo Inc (NASDAQ:GEVO) reported that it ended its first quarter of 2021 with cash and equivalents of $525.3 million, up from $78.3 million during the previous quarter, after the company completed two equity financings at $8 per share in January.
Gevo also said the Front-End Engineering Design (FEED) work for its Net-Zero 1 project is on track and is expected to be completed in December 2021.
“The FEED engineering work is going well and is on schedule. The renewable natural gas (RNG) plant is expected to be online in 2022 and begin to generate cash then,” Gevo CEO Dr. Patrick Gruber said in a statement.
READ: Gevo is a “low-carbon” company developing and commercializing renewable diesel, jet fuel alternatives
“The interest in our product and the customer pipeline has increased significantly, which is extremely positive. Overall, things are going very well and we are successfully executing our business plans,” Dr. Gruber added.
The company noted its Net-Zero 1 plant is expected to produce about 45 million gallons per year (MGPY) of energy-dense liquid hydrocarbons that, when burned as transportation fuels, should have a net-zero greenhouse gas footprint.
As well, Net-Zero 1 is expected to produce about 300 million pounds per year of protein-rich animal feed, and about 30 million pounds per year of corn oil.
It added that the plant is expected to produce its own biogas to be used to heat the production facility and provide a portion of the electricity needed to power the production facility.
Gevo also revealed that it began construction of its RNG project in Iowa in late April. The start-up of the RNG Project is targeted for early 2022, with the project expected to generate $9 million to $16 million of cash for the company annually beginning in late 2022.
The company realized revenue of $0.1 million during 1Q, while its net loss per share for the quarter narrowed to $0.05 from a deficit of $0.64 during the same period last year.
Gevo is a next-generation “low-carbon” fuel company focused on the development and commercialization of renewable alternatives to petroleum-based products. The company is developing gasoline and jet fuel using renewable feedstocks that have the potential to lower greenhouse gas emissions at a meaningful scale.
Contact Sean at sean@proactiveinvestors.com