Gevo reports 375M gal/year supply deals worth $2.3B expected annual sales.
Gevo (NASDAQ:GEVO) it now has ~375M gal/year of predominantly take-or-pay, financeable sustainable aviation fuel and hydrocarbon fuel supply agreements, representing $2.3B in expected annual sales.
The company said its Lake Preston, South Dakota, Net-Zero 1 project is on schedule with initial volumes of SAF expected to be delivered in 2025; NZ1 is expected to produce 55M gal/year of SAF, which would satisfy part of the ~375M gal/year of financeable SAF and hydrocarbon supply agreements currently in place.
Gevo (GEVO) said the transition to an ethanol-to-SAF design from the original isobutanol-to-SAF and isooctane design is yielding improved production expectations, leading to forecast project EBITDA for NZ1 of $300M-$325M/year, 56% higher than the previous midpoint estimate of $200M/year.
The company also said its renewable natural gas project in Iowa continues to ramp up production; it expects the RNG Project to generate Project EBITDA of $16M-$22M/year starting in 2023.
Alberto Abaterusso says in an analysis posted on Seeking Alpha, said:
Gevo (GEVO) aims to build its future as a SAF supplier through successful project financing following a milestone agreement with American Airlines.
READ the latest news shaping the biofuels market at Biofuels Central
Gevo reports 375M gal/year supply deals worth $2.3B expected annual sales, October 10, 2022
