Gevo Inc (NASDAQ:GEVO) announced that it has ended its 4Q 2021 with cash and equivalents of $475.8 million as the company continues to make progress on the design and engineering work related to its Net-Zero 1 Project.
Gevo said as a result of its agreement and relationship with Axens, the company recently made the decision to utilize ethanol fermentation technology instead of isobutanol fermentation technology to produce sustainable aviation fuel (SAF) and other renewable hydrocarbon products at Net-Zero 1.
"It's an exciting time to work for Gevo with plans moving forward on our first of its kind, fully-decarbonized alcohol-to-SAF plant that will produce commercial volumes of SAF,” Gevo CEO Patrick Gruber said in a statement.
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“Our relationship with Axens is bearing fruit. Knowing how to convert ethanol into net-zero SAF and other hydrocarbons is key to our growth strategy, especially with the potential commercial relationships with ADM and other partners,” Gruber added.
The company noted that using ethanol fermentation technology at Net-Zero 1 is expected to lower capital costs per gallon of hydrocarbon produced.
Gevo added that it currently expects to construct Net-Zero 1 in Lake Preston, South Dakota, and anticipates final site selection to occur later in 2022.
The company also reported that it is targeting Net-Zero 1 to be mechanically complete in late 2024 and operational in 2025, with a fully installed and non-recourse project financed capital cost of about $900 million, which is expected to generate approximately $150-200 million of earnings before interest, taxes, depreciation, and amortization (EBITDA) per year.
During the quarter, Gevo generated $0.1 million in revenue, while its net loss per share improved to $0.08 from $0.15 during the same period last year.
Gevo is focused on transforming renewable energy and carbon into energy-dense liquid hydrocarbons. These liquid hydrocarbons can be used for drop-in transportation fuels such as gasoline, jet fuel, and diesel fuel, that when burned have the potential to yield net-zero greenhouse gas emissions.
The company is also working on addressing other environmental problems like plastics, and polyesters with its technology.
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