Gevo’s RNG Subsidiary Closes $40 Million in New Bond Sales, Refinances Debt, and Strengthens Gevo Balance Sheet

Company Overview - Gevo, Inc. is a diversified energy company focused on producing renewable products, including synthetic aviation fuel, motor fuels, and chemicals, aimed at enhancing energy security and supporting rural economic growth [4] - The company operates one of the largest dairy-based renewable natural gas (RNG) facilities in the U.S. and has an ethanol plant with a carbon capture and sequestration facility [4] Recent Financial Developments - Barclays Capital Inc. has purchased $40 million of newly issued non-recourse tax-exempt private activity bonds for Gevo's subsidiary, Gevo NW Iowa RNG, LLC, which will refinance $40 million of previously issued bonds [1] - This refinancing allows Gevo to release $40 million of restricted cash and improve its balance sheet liquidity by approximately $30 million after transaction costs [1][2] Renewable Natural Gas Operations - Gevo RNG generates RNG by collecting manure from dairy farms and using anaerobic digesters to produce biogas, which is refined for use as a sustainable transportation fuel [3] - The company has received CARB certification for a carbon intensity score of negative 339 gCO2e/MJ, which will be used for California's Low Carbon Fuel Standard credits, potentially yielding over 175,000 metric tons of greenhouse gas emissions reductions annually [3] Future Plans - Gevo plans to release additional restricted cash later in the year by refinancing the remaining balance of the previous bonds through another series of 2025 Bonds [2] - The company is exploring opportunities for scaling and margin expansion in its RNG business and aims to leverage synergies with its other business lines [3]