Key Corporate Highlights
As of January 22, 2021, Gevo had approximately $535 million of cash and virtually no debt. Gevo intends to use its cash to fund capital projects, working capital and for general corporate purposes.
Gevo now has enough cash to fund 100% of the equity investment that is expected for Net-Zero 1. Gevo may bring in appropriate strategic or financial partners as equity investors if it is in Gevo’s interests to do so. Gevo expects to establish Net-Zero 1 in a special purpose entity. The full financing of Net-Zero 1 can only be completed after the front-end engineering phase is completed.
As of January 22, 2021, Gevo had approximately 198 million shares of common stock issued and outstanding.
Gevo has approximately 48MGPY of contracts signed for a mix of jet fuel and renewable gasoline products, representing approximately $1.5 billion of revenue across the life of the contracts. If Gevo secures additional take-or-pay contracts, Gevo would have to acquire and develop additional Net-Zero production sites.
Gevo has optioned the right to purchase approximately 240 acres of land near Lake Preston, SD. This site is attractive because of its abundant sustainable corn supply, high protein feed demand, rail transportation, and renewable energy potential.
Gevo is planning to close and begin construction of its first RNG project in 2021 (the “NW Iowa Project”). The NW Iowa Project will produce RNG by using anaerobic digesters to convert manure from dairy cows into RNG. RNG production is expected to begin in 2022. Citigroup is arranging the debt financing. Gevo plans to sell most of the gas to the RNG market in California and use some of the biogas generated from this project at its renewable hydrocarbons plant, for example, at Lake Preston, Luverne, and/or another site.
Gevo hired Citigroup to assist the financing of the Net-Zero production facilities and the RNG project. The Net-Zero 1 financing process is dependent on completing the front-end engineering work, expected to be completed in December 2021. Gevo expects financing for Net-Zero 1 to close in the first half of 2022.
Key Initiatives for 2021
Complete front-end engineering work for Net-Zero 1 by year end of 2021.
Gevo anticipates signing take-or-pay contracts with additional customers in 2021. Additional contracts are expected to support additional Net-Zero projects (e.g., Net-Zero 2 and 3).
Secure additional plant sites for Net-Zero 2 and/or 3 to accommodate additional offtake agreements that Gevo may sign this year.
Close financing for Gevo’s NW Iowa Project and commence construction.
Secure investment agreements with strategic and financial project investors for Net-Zero projects if terms are attractiv
