Gevo Provides Renewable Natural Gas Production Update

Core Insights - Gevo, Inc. has achieved record production levels in its renewable natural gas (RNG) business, with an annualized production rate of approximately 402,000 MMBtu in May 2024, surpassing the previous record of 401,000 MMBtu in March 2024 [2] - Despite a slight disruption in June 2024 due to severe flooding in Rock Valley, Iowa, the company managed to produce 29,082 MMBtu of RNG, maintaining its annual production target of approximately 400,000 MMBtu [2][3] Production and Operational Performance - The RNG production system is reported to be operating efficiently, with room for further improvements [2] - The flooding event did not materially impact the annual production target, and the system has returned to normal operations [2][3] Environmental Impact and Market Position - Gevo's RNG is produced by capturing methane biogas from manure digestors at three dairy farms, contributing to significant greenhouse gas mitigation [3][4] - The company operates under a California Air Resources Board (CARB) temporary pathway, currently achieving a carbon intensity score of -150 gCO2e/MJ, with an expected permanent score of -350 gCO2e/MJ by the end of 2024, which could double the non-GAAP cash EBITDA generated by the RNG business [8] Business Model and Future Prospects - Gevo aims to transform renewable energy and carbon into energy-dense liquid hydrocarbons for transportation fuels, with potential for net-zero greenhouse gas emissions across the product life cycle [9] - The company’s technology allows for the production of low-carbon fuels and sustainable plastics, positioning it well in the growing low-carbon fuels market [9]