Business
Gevo secures biogas supply and receives commitment letter for financing
ENGLEWOOD, Colo., Jan. 15, 2020 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ: GEVO) (the “Company”) announced today that it has contracted with three dairies to
About this update from Gevo, Inc.
[{"type":"text","content":"ENGLEWOOD, Colo., Jan. 15, 2020 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ: GEVO) (the “Company”) announced today that it has contracted with three dairies to provide manure that the Company will convert into pipeline quality biogas (“Renewable Natural Gas”). Combined, these three dairies expect to generate approximately 350,000 MMBTU biogas per year for sale to off-takers or use by the Company’s affiliate, Agri-Energy, LLC, at its advanced biofuel production facility located in Luverne, Minnesota (the “Luverne Facility”). \n The quest of the Company is to reduce and eliminate the fossil footprint caused by running the Luverne facility. These biogas contracts, in conjunction with wind power, should enable any biofuel produced at the Luverne facility to have a lower carbon intensity score as well as an increased value. Currently, the Company has a letter of commitment from a lender in the amount of $20 million for financing the Renewable Natural Gas project at one of the three dairies. In addition, the Company also has a verbal commitment from the same lender to finance the Renewable Natural Gas projects at the other two dairies. The financing includes capital for the anaerobic digesters, the biogas collection and upgrading system, as well as the utility interconnection system. \"These three dairy farms represent what I envisioned as Phase 1 of the biogas cluster consisting of 8-10 total farms once the system is fully built out,\" said Patrick R. Gruber, Chief Executive Officer of the Company. \"We aim to change mindsets by demonstrating you can change waste from being a pollution problem to a renewable energy solution in the liquid fuels market.\" About GevoGevo is commercializing the next generation of gasoline, jet fuel, and diesel fuel with the potential to achieve zero carbon emissions, addressing the market need of reducing greenhouse gas emissions with sustainable alternatives. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials, and is in an advanced state of developing renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their lifecycle). Gevo’s products perform as well or better than traditional fossil-ba...