Gevo, Inc. Q2 FY2024 earnings call

• DOE loan guarantee process is progressing as expected, targeting financial close by end of 2024, and NZ one development spend is tracking under the initial range of $90 million to $125 million.
• RNG business debottlenecking and expansion projects increased production to ~400,000 MMBtu annualized, sold ~95,000 MMBtu in Q2 with revenue of $4.3 million.
• Verity Holdings is working with Google to integrate AI into its platform, signed a letter of intent with Landus for low carbon commodity solutions, and has 100% farmer retention in growers programs with 76,000 acres.
• RNG business is cash flow positive, expanded capacity to 400,000 MMBtu/year, exploring further expansion, and expects LCFS approval in 6-9 months which could significantly increase revenue.

The RNG business had debottlenecking and expansion projects that increased annualized production to approximately 400,000 MMBtu, a 22% increase from the same period last year. In Q2 2024, RNG revenue was $4.3 million, including $0.1 million in RNG sales and $4.2 million net proceeds from environmental attributes. Gevo's Q2 combined revenue and interest income was $9.4 million. The corporate spend (SG&A) was $7 million for the quarter, excluding non-cash stock based compensation of $4.5 million.

• Target to close project finance at Grand V one by end of 2024.
• NZ one development spend is tracking under the initial range.
• Verity anticipates first revenue this year.
• RNG business aims to expand capacity to ~500,000 MMBtu/year with minimal additional capital expense.

• Forward-looking statements subject to risks and uncertainties affecting actual results, such as project timing, development, financing, and construction of sustainable aviation fuel projects.
• Restrictions on stock repurchase due to market conditions, insider trading policies, blackout periods, and other factors.

Q: Could you provide more color on the stock repurchase program and updates on collaboration with LG Chem?

A: Patrick Gruber mentioned restrictions on stock repurchase and that the collaboration with LG Chem on ETO technology is going well with milestones met and scaling up in progress.

Q: Any guidance on LCFS market and election cycle impact?

A: Patrick Gruber discussed that RNG will go to highest margin environments, and the business has support on both sides of the aisle due to benefits like energy security and climate solutions.

Q: About RNG non-GAAP adjusted EBITDA range, drivers, DOE loan specifics, and Google's involvement in Verity?

A: Patrick Gruber explained EBITDA range drivers related to LCFS pathway approval and carbon prices; DOE loan is a large grant in progress; Paul Bloom stated Google is integrating AI into Verity's platform via a USDA grant partnership.