Gevo receives extension on $1.46 billion DOE loan commitment for jet fuel project

Gevo, Inc. (NASDAQ:GEVO), currently valued at $601 million, announced Tuesday that it received an extension from the U.S. Department of Energy Loan Programs Office (DOE LPO) on its previously secured conditional commitment to guarantee a $1.46 billion loan for the company’s synthetic aviation fuel project in Lake Preston, South Dakota. The stock has shown strong momentum, gaining over 7% in the past week according to InvestingPro data. The extension, granted on October 8, allows the conditional commitment to remain effective until April 16, 2026. While the company maintains a healthy current ratio of 2.33, InvestingPro analysis indicates the company is currently burning through cash rapidly. For detailed insights into Gevo’s financial health and 15+ additional ProTips, consider exploring InvestingPro’s comprehensive research report.

The company originally announced the conditional commitment from the DOE LPO on October 16, 2024. The commitment supports financing for Gevo’s ATJ-60 project, also known as Net-Zero 1, which aims to produce synthetic aviation fuel.

According to the company’s statement in the SEC filing, the extension will allow Gevo and the DOE LPO to evaluate potential modifications to the project scope. These modifications are intended to address energy policies and priorities set by the department. One of the possible changes includes the construction of a lower-cost, 30 million gallon per year jet fuel production facility, referred to as ATJ-30, at Gevo’s existing ethanol and carbon capture utilization and storage facility in North Dakota. The company is also considering the optimal use of captured carbon dioxide for enhanced oil recovery. With analysts forecasting 6.45% revenue growth for the current fiscal year, these strategic modifications could be crucial for the company’s future performance.

The $1.46 billion loan guarantee does not include an additional $167 million in capitalized interest during construction, as previously disclosed.

Gevo’s common stock is traded on the Nasdaq Capital Market under the symbol GEVO.

This information is based on a statement in the company’s SEC filing.

In other recent news, Gevo Inc. reported its Q2 2025 earnings with a surprising positive earnings per share (EPS) of $0.01, surpassing the forecasted -$0.07. The company’s revenue also exceeded expectations, reaching $43.41 million compared to the projected $39.55 million. Additionally, Gevo announced a partnership with Frontier Infrastructure Holdings LLC to launch North America’s first fully integrated carbon management platform for ethanol producers. This collaboration involves the integration of Frontier’s Sweetwater Carbon Storage Hub with Gevo’s bioenergy carbon capture expertise and Verity digital tracking platform. In another development, Gevo’s subsidiary, Net-Zero Richardton, signed a Carbon Dioxide Removal Sales Agreement with Biorecro North America, LLC. This deal is expected to generate approximately $26 million in revenue over five years. The agreement covers voluntary carbon dioxide removal credits from Gevo’s North Dakota facility, with certification by Puro.earth. These recent developments highlight Gevo’s strategic initiatives in carbon management and financial performance.

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