Gevo (GEVO, Financial), a renewable chemicals and biofuels company, announced that it has secured a $1.46 billion conditional loan guarantee from the U.S. Department of Energy's Loan Programs Office. This substantial financial backing is allocated for the development of its Net-Zero 1 project in South Dakota. Following the announcement, Gevo's stock skyrocketed, surging nearly 52% in after-hours trading.
The Net-Zero 1 project aims to produce approximately 60 million gallons of sustainable aviation fuel annually, alongside 1.3 billion pounds of protein and animal feed products, and 30 million pounds of corn oil. The initiative is designed to achieve a net-zero carbon footprint across its life cycle, including fuel combustion, making it a groundbreaking milestone in sustainable aviation fuel (SAF) production.
Gevo's CEO, Patrick Gruber, emphasized the significance of this development, stating it as a watershed moment for the company. This project represents a critical step towards revolutionizing the aviation sector by supplying scalable, sustainable, and economically viable renewable carbon-based aviation fuel.
