Gevo, Inc. Q3 FY2024 earnings call

• Acquired Red Trail Energy's low-carbon ethanol and carbon capture sequestration assets in North Dakota, expected to close by Q1 next year, with ~$200 million in 2023 revenue.
• Received a $1.63 billion conditional commitment from the U.S. Department of Energy for the Net-Zero 1 SAF project in South Dakota, a major milestone.
• Acquired Cultivate Agricultural Intelligence, LLC with expected 2024 revenue of $1.7 million, combining with Verity's solutions for carbon abatement.
• Granted two patents for the Breakthrough Ethanol-To-Olefin Process.
• Development spend for Net-Zero 1 is tracking under estimated range, expecting reimbursement at financial close.

The RNG business generated $2 million in revenue during the third quarter of 2024. This revenue included $1.8 million in net proceeds from environmental attributes and $0.2 million in RNG sales.

• Expect to achieve positive adjusted EBITDA in 2025.
• Red Trail asset acquisition expected to close early 2025, combining third-party project debt with Gevo equity capital.
• Anticipate higher value from RNG inventory once California pathway approval is received.

• Uncertainties around the release of DOE loan funds and specific disbursement details.
• Potential challenges with the Summit Carbon pipeline referendum in South Dakota affecting CCS efforts.
• General risks associated with forward-looking statements and uncertainties in project development, financing, and construction.

Q: Details on remaining steps for DOE loan release and cadence?

A: The conditional commitment survives administration changes, need to go through due process; project is solid with job creation and economic impact.

Q: Equity portion of project financing?

A: Interest in equity due to thorough DOE diligence, benefits equity holders.

Q: RNG inventory valuation and future revenue?

A: Holding inventory for California pathway approval to get higher value, booked at minus 150.

Q: CCS pipeline issues in South Dakota and Red Trail as CCS option for NZ1?

A: Referendum was misrepresented, pipeline authority with PUC; Red Trail could be a CCS option with logistics to work out.

Q: Building without pipeline if needed?

A: Can rail stuff up, but need to work through business and political issues in South Dakota