Gevo withdrew its application today following a conversation with EDF in which it was clear the business objectives EDF required—that the project support enhanced oil recovery (EOR)—are not yet commercially viable at scale in the project area, and that there are opportunities for alternative financing better aligned with company strategy that can accelerate the timeline for project execution with improved returns. The withdrawal affords Gevo the opportunity to resubmit an application for a project at a later date, if desired.
Gevo previously received a conditional commitment from EDF (formerly known as the Loan Programs Office) to guarantee a loan for its ATJ-60 synthetic aviation fuel (SAF) project (formerly known as Net-Zero 1) in Lake Preston, South Dakota. Gevo had been working with EDF to transition the conditional commitment to its ATJ-30 project to be located at its newly acquired Gevo North Dakota (GND) facility in Richardton, North Dakota. Gevo intends to continue its efforts on ATJ-30 at GND as the project remains in line with overall company strategy and timeline for execution. That facility includes low-carbon ethanol production, and carbon capture and geological carbon sequestration capabilities, which are beneficial for cost-effective ATJ production.
"Over the past year, we have substantially derisked ...
