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Gevo Provides Business Update
GEVOGevo(GEVO) Newsfilter·2025-03-07 14:30

Core Viewpoint - Gevo, Inc. is targeting substantial growth in Adjusted EBITDA for 2025, supported by its recent acquisition of Gevo North Dakota and various renewable energy projects [1][4]. Business Update – Path to Positive Run-Rate Adjusted EBITDA - Gevo North Dakota's carbon capture and low-carbon ethanol assets generated 150millioninrevenuelastfiscalyearandareexpectedtocontribute150 million in revenue last fiscal year and are expected to contribute 30 million to 60millioninAdjustedEBITDAannually[2][15].−Thefacilitycapturesover160,000tonsofbiogeniccarbondioxideannuallyandproducesapproximately67milliongallonsoflow−carbonethanol[2].−RenewableNaturalGas(RNG)productionincreasedby1760 million in Adjusted EBITDA annually [2][15]. - The facility captures over 160,000 tons of biogenic carbon dioxide annually and produces approximately 67 million gallons of low-carbon ethanol [2]. - Renewable Natural Gas (RNG) production increased by 17% in 2024 to 367,000 MMBtu, with expectations to exceed 400,000 MMBtu in 2025, potentially generating 9 million to 18millioninAdjustedEBITDA[2][4].−TheAlcohol−to−Jet603(ATJ−60)projectisprogressingtowardsfinancialclosein2025,withaconditionalloanguaranteeof18 million in Adjusted EBITDA [2][4]. - The Alcohol-to-Jet 603 (ATJ-60) project is progressing towards financial close in 2025, with a conditional loan guarantee of 1.462 billion from the U.S. Department of Energy [2][5]. - The ATJ-60 project is expected to create 100 direct jobs and over 700 indirect jobs, with a regional economic impact exceeding 110millionannually[2][5].VerityBusinessGrowth−Gevo′sVeritybusiness,asoftware−as−a−serviceplatformfortrackingagriculturalandlow−carbonfuelproducts,hasexpandedtoover200,000acreswith100110 million annually [2][5]. Verity Business Growth - Gevo's Verity business, a software-as-a-service platform for tracking agricultural and low-carbon fuel products, has expanded to over 200,000 acres with 100% farmer retention [3]. - Verity has agreements with seven agricultural processing plant customers to track environmental attributes, indicating a growing market for regenerative agriculture and fuels [3]. ETO Technology Advancement - Gevo is advancing its patented Ethanol to Olefins (ETO) technology, which aims to lower costs for bio-based hydrocarbon fuels and chemicals [3]. - A development agreement with Axens aims to accelerate commercialization of ETO technology, with a global market for low-carbon chemicals estimated at 400 billion to $500 billion annually [3]. Management Insights - The acquisition of Gevo North Dakota is seen as transformative, providing a pathway to monetize carbon abatement through tax credits and expanding CCS opportunities [4]. - The company anticipates achieving a positive Adjusted EBITDA run-rate in 2025, driven by its diversified low-carbon asset base [4].