After a noteworthy conditional loan commitment, Gevo, Inc. (NASDAQ: GEVO) shares are seeing notable gains on the US stock charts. The value of GEVO shares as of the most recent pre-market trade was $3.11, representing a 38.22% increase.
This increase is directly related to a conditional commitment made by the Loan Programs Office (LPO) of the U.S. Department of Energy (DOE), which provided a $1.46 billion loan guarantee for Gevo’s Net-Zero 1 (NZ1) project in South Dakota. The financing facility can borrow up to $1.63 billion, including capitalized interest throughout development.
Overview of the Net-Zero 1 Project
Currently in the process of being built at Lake Preston, South Dakota, the NZ1 plant is expected to generate around 60 million gallons of sustainable aviation fuel or SAF each year. Every year, it will also produce around 30 million pounds of maize oil and 1.3 billion pounds of animal feed and protein. The factory will fully utilize feedstocks obtained from the United States, in line with the company’s sustainability objectives.
Effect on Agriculture and Aviation Sustainability
Gevo’s NZ1 project stands out for its ability to generate SAF with a net-zero carbon footprint over its lifecycle, even when the fuel is consumed. The company’s innovative approach is anticipated to drive the adoption of climate-smart agricultural practices, boost rural employment, and strengthen domestic energy security.
NZ1 is also the first large-scale alcohol-to-jet (ATJ) project to receive conditional DOE support, creating new opportunities for South Dakota’s workers, farmers, and residents.
A Milestone in SAF Commercialization
This loan commitment represents a critical juncture in Gevo’s mission to revolutionize the aviation industry by offering scalable, sustainable jet fuel. The DOE’s rigorous due diligence enhances the project’s execution prospects, making it an attractive investment for further SAF commercialization.
With this foundation, Gevo aims to replicate its net-zero model across future projects, accelerating the path toward broader SAF adoption. Additionally, through its subsidiary, Verity Holdings, LLC, Gevo plans to monitor and verify the sustainability and carbon intensity of its products.
