Gevo’s Net-Zero 1 ethanol-to-jet project has been invited by the US Department of Energy (DOE) to the due diligence and term sheet negotiation phase for a $950 million loan guarantee under the Title 17 Clean Energy Financing Program.
This key milestone marks the successful completion of the phase II application and diligence process, which Gevo publicly announced on January 19, 2023. Most importantly, this milestone signifies the commencement of the underwriting phase for the debt financing process.
"We believe that reaching this stage with the DOE is a critical milestone and illustrative of Gevo’s progress in developing Net-Zero 1. We are excited to be working with the DOE on a process that supports our mission to deliver Sustainable Aviation Fuel (SAF) to the marketplace.” stated Patrick Gruber, chief executive officer, Gevo.
The Net-Zero 1 plant is expected to have capacity of 65 million gallons per year of sustainable aviation fuel and other hydrocarbons, as well as approximately 1.5 billion pounds of high-value nutritional products on a wet basis annually. Electricity needed to power the plant is expected to come from wind energy and other renewable energy sources, ensuring a sustainable and environmentally friendly approach to fuel production.
DOE's invitation into the due diligence and term sheet negotiation process is not an assurance that DOE will issue a loan guarantee, nor that the terms and conditions of a loan guarantee will align with terms proposed by Gevo.