Gevo, Inc. Announces Sale of Approximately $20 Million of Investment Tax Credits Generated by the Gevo NW Iowa RNG Facility Under Inflation Reduction Act, Helping to Drive Further Investment in Clean Energy
Gevo, Inc. (NASDAQ: GEVO) has announced the sale of approximately $20 million in Investment Tax Credits generated by its Gevo NW Iowa RNG facility under the Inflation Reduction Act. This transaction provides net cash proceeds of about $17 million after fees. The RNG facility, optimized to produce 400,000 MMBtus of RNG annually, is expected to reduce greenhouse gas emissions by up to 175,000 metric tons of CO2 equivalent per year.
The sale monetizes tax credits from the facility's commercialization, improving Gevo's liquidity and ability to fund strategic sustainable aviation fuels (SAF) projects. The company continues to explore scaling opportunities for its RNG business and potential synergies with other operations. This transaction demonstrates how Gevo's focus on renewable energy optimization creates value for shareholders.
Gevo, Inc. (NASDAQ: GEVO) ha annunciato la vendita di circa 20 milioni di dollari in crediti d'imposta per investimenti generati dalla sua struttura RNG Gevo NW Iowa in base all'Inflation Reduction Act. Questa transazione fornisce proventi netti in contante di circa 17 milioni di dollari dopo le spese. L'impianto RNG, ottimizzato per produrre 400.000 MMBtus di RNG all'anno, si prevede riduca le emissioni di gas serra fino a 175.000 tonnellate metriche di CO2 equivalente all'anno.
La vendita monetizza i crediti d'imposta derivanti dalla commercializzazione dell'impianto, migliorando la liquidità di Gevo e la sua capacità di finanziare progetti strategici sui combustibili aeronautici sostenibili (SAF). L'azienda continua a esplorare opportunità di scalabilità per il suo business RNG e potenziali sinergie con altre operazioni. Questa transazione dimostra come il focus di Gevo sull'ottimizzazione dell'energia rinnovabile crei valore per gli azionisti.
Gevo, Inc. (NASDAQ: GEVO) ha anunciado la venta de aproximadamente 20 millones de dólares en créditos fiscales de inversión generados por su instalación RNG Gevo NW Iowa bajo la Ley de Reducción de la Inflación. Esta transacción proporciona ingresos netos en efectivo de aproximadamente 17 millones de dólares después de comisiones. La instalación de RNG, optimizada para producir 400,000 MMBtus de RNG anualmente, se espera que reduzca las emisiones de gases de efecto invernadero en hasta 175,000 toneladas métricas de CO2 equivalente por año.
La venta monetiza los créditos fiscales de la comercialización de la instalación, mejorando la liquidez de Gevo y su capacidad para financiar proyectos estratégicos de combustibles de aviación sostenibles (SAF). La compañía continúa explorando oportunidades de escalado para su negocio de RNG y posibles sinergias con otras operaciones. Esta transacción demuestra cómo el enfoque de Gevo en la optimización de energía renovable crea valor para los accionistas.
Gevo, Inc. (NASDAQ: GEVO)는 인플레이션 감축법에 따라 Gevo NW Iowa RNG 시설에서 생성된 약 2000만 달러의 투자세금 크레딧을 판매한다고 발표했습니다. 이 거래는 수수료를 제외한 약 1700만 달러의 순 현금 수익을 제공합니다. RNG 시설은 연간 400,000 MMBtus의 RNG 생산을 최적화했으며, 연간 최대 175,000톤의 CO2 동등 온실가스 배출량 감소이 예상됩니다.
이번 판매는 시설의 상용화에서 발생한 세금 크레딧을 현금화하여 Gevo의 유동성과 지속 가능한 항공 연료(SAF) 프로젝트에 자금을 지원할 수 있는 능력을 향상시킵니다. 회사는 RNG 비즈니스를 위한 확장 기회와 다른 운영과의 잠재적 시너지를 탐색해 나가고 있습니다. 이 거래는 Gevo의 재생 가능 에너지 최적화에 대한 집중이 어떻게 주주 가치를 창출하는지를 보여줍니다.
Gevo, Inc. (NASDAQ: GEVO) a annoncé la vente d'environ 20 millions de dollars en crédits d'impôt pour investissements générés par sa centrale RNG Gevo NW Iowa en vertu de la loi sur la réduction de l'inflation. Cette transaction fournit des produits nets d'environ 17 millions de dollars après frais. L'installation RNG, optimisée pour produire 400 000 MMBtus de RNG par an, devrait réduire les émissions de gaz à effet de serre jusqu'à 175 000 tonnes métriques de CO2 équivalent par an.
La vente monétise les crédits d'impôt issus de la commercialisation de l'installation, améliorant la liquidité de Gevo et sa capacité à financer des projets stratégiques de carburants d'aviation durables (SAF). L'entreprise continue d'explorer des opportunités d'expansion pour son activité RNG et de potentielles synergies avec d'autres opérations. Cette transaction démontre comment l'accent mis par Gevo sur l'optimisation des énergies renouvelables crée de la valeur pour les actionnaires.
Gevo, Inc. (NASDAQ: GEVO) hat den Verkauf von etwa 20 Millionen Dollar in Investitionssteuergutschriften bekannt gegeben, die von seiner Gevo NW Iowa RNG-Anlage im Rahmen des Inflation Reduction Act generiert wurden. Diese Transaktion liefert nach Gebühren Nettobarerlöse von etwa 17 Millionen Dollar. Die RNG-Anlage, die optimiert wurde, um 400.000 MMBtus RNG jährlich zu produzieren, wird voraussichtlich die Treibhausgasemissionen um bis zu 175.000 metrische Tonnen CO2-Äquivalente pro Jahr reduzieren.
Der Verkauf monetarisiert die Steuergutschriften aus der Commercialisierung der Anlage und verbessert die Liquidität von Gevo sowie die Fähigkeit, strategische Projekte für nachhaltige Flugkraftstoffe (SAF) zu finanzieren. Das Unternehmen prüft weiterhin Skalierungsmöglichkeiten für sein RNG-Geschäft und potenzielle Synergien mit anderen Aktivitäten. Diese Transaktion zeigt, wie Gevos Fokus auf die Optimierung erneuerbarer Energien Wert für die Aktionäre schafft.
- Sale of $20 million in Investment Tax Credits, providing $17 million in net cash proceeds
- RNG facility optimized to produce 400,000 MMBtus of RNG annually
- Potential for additional value through Section 45Z Clean Fuel Production Credits
- Expected reduction of 175,000 metric tons of CO2 equivalent greenhouse gas emissions annually
- Improved liquidity and increased cash flow from operations
- Enhanced ability to fund strategic sustainable aviation fuels (SAF) projects
- None.
Insights
The sale of
However, investors should note that while this
Gevo's RNG facility, producing 400,000 MMBtus annually with potential for growth, represents a significant step in renewable energy production. The estimated reduction of 175,000 metric tons of CO2 equivalent emissions annually is noteworthy. This aligns well with California's Low Carbon Fuel Standard, positioning Gevo favorably in the growing clean energy market.
The IRA's provision for transferable tax credits is a game-changer for the renewable energy sector. It simplifies the process of monetizing tax credits, making clean energy projects more attractive to a broader range of investors. This could accelerate the adoption of renewable technologies across industries. For Gevo, this policy environment creates opportunities to expand its RNG business and potentially leverage it with other business lines, enhancing its competitive position in the clean energy market.
Gevo's strategic monetization of tax credits signals a broader trend in the renewable energy sector. The
For investors, Gevo's move demonstrates financial agility and an ability to capitalize on regulatory incentives. However, the long-term value proposition hinges on Gevo's capacity to translate these financial maneuvers into sustainable growth in its core business areas, particularly SAF. The company's exploration of scaling and margin expansion in RNG, if successful, could provide a more stable revenue stream to complement its developmental SAF business. Investors should monitor Gevo's progress in leveraging this cash infusion for tangible growth in its operational capabilities and market share.
ENGLEWOOD, Colo., Sept. 19, 2024 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ: GEVO) is pleased to announce the sale of approximately
The Gevo RNG asset has been optimized to produce approximately 400,000 MMBtus of RNG per year, and Gevo expects to further increase production over time. Additional RNG value could be unlocked through the monetization of Section 45Z Clean Fuel Production Credits under the IRA, once those rules are defined.
Gevo RNG generates RNG by collecting manure on dairy farms and placing it in anaerobic digesters installed on those farms, where biogas (also known as biomethane) is captured, then refined to replace fossil natural gas as a transportation fuel. Gevo’s commercial partner sells the RNG into California. Using an estimated carbon intensity score that incorporates the methane avoidance crediting aligned in the California Air Resources Board Low Carbon Fuel Standard, the RNG produced by the Gevo RNG facility is expected to yield upwards of 175,000 metric tons of carbon dioxide equivalent greenhouse gas emissions reductions annually. Gevo continues to explore increased scaling and margin expansion opportunities for its RNG business, and how to leverage it synergistically with its other lines of business.
“We continue to seek out ways to unlock shareholder value from our operations,” said Dr. Pat Gruber, CEO of Gevo. “This is just one example of how our mission to optimize renewable energy and seek out efficiencies creates opportunities.”
Net proceeds from the monetization of these tax credits improve Gevo’s liquidity, increase cash flow from operations, and improve the company’s ability to fund strategic sustainable aviation fuels (“SAF”) and other growth projects that deliver value to shareholders.
The IRA has changed the way federal clean energy tax credits are monetized and has altered the way companies approach how they leverage investment and production tax credits for renewable energy projects. The IRA permits the buying and selling of these credits for cash, which creates a new avenue for companies seeking tax savings through a growing tax credit market, rather than requiring commitment to a long-term renewable energy investment with a sponsor. This area of tax credit transferability is continuing to develop, but the current market offers the advantage of acquiring credits at a discount, reducing the investment timeframe and providing a straightforward legal procedure in comparison to traditional tax equity dealings.
“Gevo RNG began as a low-carbon source of heat energy for our facilities but has increased in value as it helps to reduce use of fossil energy in transportation while creating cash flow and driving further investment in clean energy,” Gruber said. “This is the kind of efficiency that Gevo’s circular economy fosters, and we expect it will continue to deliver shareholder returns as it grows.”
About Gevo
Gevo's mission is to convert renewable energy and biogenic carbon into sustainable fuels and chemicals with a net zero or better carbon footprint. Gevo’s innovative technology can be used to make a variety of products, including SAF, motor fuels, chemicals, and other materials. Gevo’s business model includes developing, financing, and operating production facilities for these renewable fuels and other products. It currently runs one of the largest dairy-based renewable RNG facilities in the United States. It also owns the world’s first production facility for specialty alcohol-to-jet (“ATJ”) fuels and chemicals. Gevo emphasizes the importance of sustainability by tracking and verifying the carbon footprint of their business systems through its Verity subsidiary.
For more information, see www.gevo.com.
Forward Looking Statement
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, Gevo RNG and its operations, the ability to monetize additional tax credits, and other statements that are not purely statements of historical fact. These forward-looking statements are made based on 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.
Media Contact
Lindsay Fitzgerald
Senior Vice President of Public Affairs
PR@gevo.com
FAQ
How much did Gevo sell in Investment Tax Credits from its NW Iowa RNG facility?
What are the net cash proceeds for Gevo from the tax credit sale?
How much renewable natural gas (RNG) can the Gevo NW Iowa facility produce annually?
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How does the Investment Tax Credit sale impact Gevo's financial position?
