Wedoany.com Report-Apr. 2, Gevo Inc. CEO Patrick Gruber shared updates on the company’s proposed sustainable aviation fuel (SAF) project in South Dakota during a fourth-quarter earnings call on March 27. He indicated that financial close for the 60 million gallons per year (MMgy) facility, planned near Lake Preston, South Dakota, could occur by the end of 2025.

The project secured a conditional U.S. Department of Energy loan guarantee last year, and Gruber noted ongoing cooperation with the DOE loan office to meet financial targets. He mentioned that Gevo is monitoring Summit Carbon Solutions’ CO2 pipeline plans, which could impact the SAF plant’s economics. South Dakota recently passed a law banning eminent domain for CO2 pipelines, leading Summit to pause its permit application with the state’s Public Utilities Commission. Iowa lawmakers are pursuing a similar restriction. Despite this, Gruber said Summit remains confident, telling Gevo: “The pipeline is going to get done.”

Gruber emphasized flexibility, stating the SAF project could proceed without the pipeline. Gevo’s recently acquired ethanol plant in North Dakota has a CO2 sequestration site capable of handling emissions from the South Dakota facility. He added: “If we went this route, the project returns for [the] South Dakota plant would still be attractive.” The company aims for financial close by year-end, with engineering work also advancing for SAF capacity at the North Dakota plant, leveraging progress from the South Dakota design.

Beyond SAF, Gevo operates a renewable natural gas (RNG) project in Iowa, which sold 366,557 MMBtu last year, generating $15.8 million in revenue for the RNG subsidiary—a $300,000 rise from the prior year, driven by higher environmental attribute sales. Gevo anticipates final approval under California’s Low Carbon Fuel Standard in early 2025, enabling benefits from a lower carbon intensity score.

For the fourth quarter, Gevo reported $8.9 million in combined operating revenue and investment income, with a $19.6 million operating loss. Non-GAAP adjusted EBITDA loss was $11.3 million, and net loss per share stood at 8 cents. The updates reflect Gevo’s multi-faceted approach to sustainable energy, balancing SAF development with existing RNG operations.