New Report Finds There are $4-6 in Benefits to the U.S. Economy for Every $1 of Federal SAF Incentives at Gevo’s Net-Zero 1 Facility
09 August 2024 - 6:18PM
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.
“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” said Lindsay Fitzgerald,
Gevo’s Senior Vice President of Public Affairs. “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.
About Gevo
Gevo’s mission is to transform renewable energy and carbon into
energy-dense liquid hydrocarbons. These liquid hydrocarbons can be
used for drop-in transportation fuels such as gasoline, jet fuel
and diesel fuel, that when burned have potential to yield net-zero
greenhouse gas emissions when measured across the full life cycle
of the products. Gevo uses low-carbon renewable resource-based
carbohydrates as raw materials, and is in an advanced state of
developing renewable electricity and renewable natural gas for use
in production processes, resulting in low-carbon fuels with
substantially reduced carbon intensity (the level of greenhouse gas
emissions compared to standard petroleum fossil-based fuels across
their life cycle). Gevo’s products perform as well or better than
traditional fossil-based fuels in infrastructure and engines, but
with substantially reduced greenhouse gas emissions. In addition to
addressing the problems of fuels, Gevo’s technology also enables
certain plastics, such as polyester, to be made with more
sustainable ingredients. Gevo’s ability to penetrate the growing
low-carbon fuels market depends on the price of oil and the value
of abating carbon emissions that would otherwise increase
greenhouse gas emissions. Gevo believes that its proven, patented
technology enabling the use of a variety of low-carbon sustainable
feedstocks to produce price-competitive low-carbon products such as
gasoline components, jet fuel and diesel fuel yields the potential
to generate project and corporate returns that justify the
build-out of a multi-billion-dollar business.
Gevo believes that the Argonne National Laboratory GREET model
is the best available standard of scientific-based measurement for
life cycle inventory or LCI.
Learn more at Gevo’s website: www.gevo.com
Forward-Looking Statements
Certain statements in this press release may constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements relate to a variety of matters including, without
limitation, the value of the federal tax credits, the jobs created
by the NZ1 plant, the local impacts of the NZ1 plant, estimated tax
revenue related to NZ1 and other statements that are not purely
statements of historical fact. These forward-looking statements are
made on the basis of the current beliefs, expectations and
assumptions of the management of Gevo and are subject to
significant risks and uncertainty. Investors are cautioned not to
place undue reliance on any such forward-looking statements. All
such forward-looking statements speak only as of the date they are
made, and Gevo undertakes no obligation to update or revise these
statements, whether as a result of new information, future events
or otherwise. Although Gevo believes that the expectations
reflected in these forward-looking statements are reasonable, these
statements involve many risks and uncertainties that may cause
actual results to differ materially from what may be expressed or
implied in these forward-looking statements. For a further
discussion of risks and uncertainties that could cause actual
results to differ from those expressed in these forward-looking
statements, as well as risks relating to the business of Gevo in
general, see the risk disclosures in the Annual Report on
Form 10-K of Gevo for the year ended December 31, 2023,
and in subsequent reports on Forms 10-Q and 8-K and other filings
made with the U.S. Securities and Exchange Commission by Gevo.
PR ContactLindsay FitzgeraldSenior Vice
President of Public AffairsPR@Gevo.com
IR Contact
Eric FreyVice President of Finance & StrategyIR@Gevo.com
Gevo (NASDAQ:GEVO)
Historical Stock Chart
Von Jul 2024 bis Aug 2024
Gevo (NASDAQ:GEVO)
Historical Stock Chart
Von Aug 2023 bis Aug 2024