Gevo Inc (NASDAQ:GEVO) posted first-quarter earnings that doubled up its figure from the same period of 2021, the company announced, as it continues to move forward with its Net-Zero 1 project.
The company reported earnings of $200,000 for the three months ended March 31, up from $100,000 in the first quarter of 2021. Its adjusted net loss was $15.7 million in the quarter, compared to $10 million a year earlier.
Gevo sold 35,000 gallons of sustainable aviation fuel (SAF), lisooctane and isooctene from its development facility at Luverne, Minnesota during the quarter, a dramatic change from the first quarter of 2021 when the COVID-19 pandemic prevented any sales, the company said.
Cash and equivalents on hand at the end of the quarter was $429.6 million, compared to $375.8 million at the end of the fourth quarter of 2021.
READ: Gevo hails President Biden's executive actions supporting sustainable aviation fuel
During the quarter, Gevo announced a “take-or-pay” agreement with Delta Air Lines (NYSE:DAL) Inc to supply 75 million gallons of SAF per year for seven years, which it says should generate about $2.8 billion in revenue, inclusive of the value from environmental benefits.
CEO Patrick Gruber commented on Gevo’s developing Net-Zero 1 project, which will ultimately produce SAF and other renewable hydrocarbon projects.
"We are moving forward with our Net Zero 1 plans in Lake Preston, South Dakota and couldn't be more pleased with the progress we have made,” Gruber said in a statement. “We look forward to beginning site preparations later this year and construction early next year. We believe we have a world class team in place to manage the development of this first of its kind, Net-Zero plant and the many additional plants that will be needed to produce this valuable fuel.”
Preliminary stage project costs for its NetZero and northwest Iowa renewable netual gas projects decreased by $2.2 million year-over-year, which Gevo attributes to the capitalization of Net-Zero 1 project costs in the third quarter of 2021 after certain milestones were reached.
“In northwest Iowa, our dairy RNG facility continues its ramp to stable production and I am very proud of how well that team executed to deliver the project on time and within budget,” Gruber said. “We intend to build many Net-Zero plants over the coming years and we believe we have all the right people in place to get it done."
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.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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