New Report Finds There are $4-6 in Benefits to the US Economy for Every $1 of Federal Sustainable Aviation Fuel Incentives at Gevo’s Net-Zero 1 Facility.
Gevo, Inc. (NASDAQ: GEVO) today released a new report by Charles River Associates demonstrating the benefits of sustainable aviation fuel (“SAF”) production, including at Gevo’s planned Net-Zero 1 (“NZ1”) alcohol-to-jet (“ATJ”) SAF facility in South Dakota. CRA’s findings in the report show that every $1.00 from federal tax credits for ATJ SAF yields an estimated $4-6 of total quantified benefits. The research, commissioned by Gevo, also demonstrates how the proposed NZ1 facility is expected to directly support local economies, drive down emissions, and improve our nation’s energy security.
Lindsay Fitzgerald, Gevo’s Senior Vice President of Public Affairs, said:
Practical, economical products like SAF provide our communities with clear benefits.
“We believe that not only will the sustainable jet fuel produced at NZ1 be cost-effective, but it will also help to lower emissions, create good-paying jobs, and bolster agricultural markets nationwide. It doesn’t have to be a tradeoff. This report shows that reducing greenhouse gas emissions in a business system like ours generates a payback for all of us, in addition to the project economics itself,”
“The exciting benefits of NZ1 are not limited to South Dakota—Gevo has identified several potential sites in other states. We look forward to replicating these efforts in other localities and appreciate the continued collaboration with our federal partners to make this, and other facilities, a reality.”
The report prepared by CRA shows that NZ1 would be a game-changer for scaling SAF production and uplifting local communities. Facilitating significant carbon reductions in jet fuel is needed to meet industrywide net-zero goals and provide needed certainty to farmers. The report’s key findings include:
Energy and environmental benefits
- Avoided impacts valued at $2/gallon from reduced lifecycle GHG emissions by replacing fossil jet fuel with ATJ SAF;
- Substituting fossil jet fuel with ATJ SAF generates a value of $0.12/gallon in avoided health impacts from reduced particulate matter emissions during flight;
- Implementing climate-smart agriculture practices yields improved air and water quality, reduced GHG emissions, and more money in farmers’ pockets to grow crop feedstocks in place of conventional farming practices, valued at $0.90/gallon; and
- Improved energy security by choosing a home-grown solution, resulting in domestic infrastructure and jobs expansion with continued agriculture partnership and distributing jet fuel production more broadly across the country.
Local economic benefits
- Provides $116 million of value added annually to the local economy from direct, indirect, and induced impacts of NZ1’s expected operations;
- Supports 100 jobs at the NZ1 plant and creates an additional 736 local jobs;
- Contributes incremental economic value that is returned to the federal government in the form of tax revenue, estimated at $23 million annually or $0.38/gallon of SAF annually; and
- Adds the interim benefit of $184 million in local economic value and supports 1,266 jobs during construction of NZ1.
To learn more about NZ1’s benefits, read the full report prepared by CRA here. Note that the report is based on certain assumptions and scenarios as laid out in the report. The foregoing description of the report does not purport to be complete and is subject to, and is qualified in its entirety by, the full text of such report.
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New Report Finds There are $4-6 in Benefits to the US Economy for Every $1 of Federal Sustainable Aviation Fuel Incentives at Gevo’s Net-Zero 1 Facility. source
