Gevo Inc. (NASDAQ:GEVO), a renewable fuels company, saw its shares fall in Thursday's premarket session after the company withdrew its loan guarantee application with the U.S.

Department of Energy's Office of Energy Dominance Financing for its ATJ-30 project.

Financing Shift

The company said the DOE required the project to support enhanced oil recovery, which is not yet commercially viable at scale in the project area.

Gevo is pursuing alternative financing options better aligned with its strategy, aiming to accelerate execution and improve returns.

The withdrawal allows the company to reapply for financing at a later date if it chooses.

Project Continuity

Gevo had been working to transfer a prior conditional DOE loan guarantee—originally tied to its ATJ-60 sustainable aviation fuel project in South Dakota—to the ATJ-30 project at its Gevo North Dakota facility.

The company will continue advancing ATJ-30 at the site, which includes low-carbon ethanol production and carbon capture and sequestration capabilities.

CEO Commentary

CEO Paul Bloom said, "Over the past year, we have substantially derisked our position in low-carbon ethanol ...