• Cash and Cash Equivalents: $259 million at the end of Q4 2024.
• Operating Revenue and Other Net Income: $8.9 million for Q4 2024; $32.7 million for the full year 2024.
• RNG Revenue: $15.8 million generated during 2024.
• Loss from Operations: $19.6 million in Q4 2024.
• Adjusted EBITDA Loss: $11.3 million in Q4 2024.
• Gevo North Dakota Acquisition: Producing 67 million gallons of low carbon ethanol annually.
• Carbon Intensity Score: Approximately 21 grams CO2 per megajoule for Gevo North Dakota.
• ATJ-60 Project Development Spend: Projected $40 million from January 1, 2025, until financial close.
• Verity Revenue: Achieved first revenue in 2024; customer base expected to grow in 2025.

• Warning! GuruFocus has detected 5 Warning Signs with GEVO.

Release Date: March 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Gevo Inc (NASDAQ:GEVO) acquired a low-carbon ethanol plant in North Dakota, which is already contributing to their operations and has a low carbon intensity score, allowing immediate monetization of carbon abatement and tax credits.
• The company is on track to produce over 400,000 million BTUs of renewable natural gas (RNG) in 2025, with expected adjusted EBITDA in the range of $9 million to $18 million due to operational improvements and tax credits.
• Gevo Inc (NASDAQ:GEVO) received a conditional commitment for a $1.63 billion loan from the US Department of Energy for their Alcohol-to-Jet 60 project, indicating strong governmental support.
• The company is making progress in developing modularized Alcohol-to-Jet plants, which could be replicated across the US, potentially converting existing ethanol plants into jet fuel production facilities.
• Gevo Inc (NASDAQ:GEVO) is expanding its strategic alliance with Axens to commercialize ethanol-to-olefins technology, which could lower capital and operational expenses by about 30%.

Negative Points

• Gevo Inc (NASDAQ:GEVO) reported a loss from operations of $19.6 million in the last quarter, with a non-GAAP adjusted EBITDA loss of $11.3 million.
• The company needs to raise approximately $800 million in equity for their South Dakota project, which poses a significant financial challenge.
• There is uncertainty surrounding the Summit pipeline, which could impact the economics of Gevo Inc (NASDAQ:GEVO)'s South Dakota project.
• The company is facing challenges in tweaking off-take agreements with airlines to align with project financing requirements, which could delay financial close.
• Gevo Inc (NASDAQ:GEVO) identified a weakness in internal controls related to the mischaracterization of expenses, which they are working to remediate.

Q & A Highlights

Q: What are the equity investor options for the SPV side of the net 01 opportunity? Are these strategic investors or financial investors? A: Patrick Gruber, CEO: We are considering a range of investors, including strategics, specialty funds, and classic financial funds. We need to have commitments in place as a prerequisite for the DOE loan, and we aim to complete this process in 2025.

Q: How do you plan to monetize the carbon capture expansion opportunity at North Dakota? A: Paul Bloom, Chief Business Officer: We have options to monetize carbon capture by bundling it with renewable fuel or selling it separately as carbon dioxide removal credits (CDRs). We are actively participating in developing markets for these credits.

Q: Are recent tariff announcements impacting the costs of your first plant, ATJ-60 in South Dakota? A: Chris Ryan, President and COO: The tariffs are not impacting our project costs significantly. Most of the project components are not subject to these tariffs.

Q: What are the future milestones for the ethanol-to-olefins technology as it scales? A: Paul Bloom, Chief Business Officer: We are in the development phase with Axens, having completed the first pilot stage. The next milestone is to de-risk the technology for commercialization, aiming for completion within 12 to 18 months.

Q: Can you provide details on the $30 million to $60 million adjusted EBITDA expectation from the Red Trail acquisition? A: Eric Frey, VP of Finance and Investor Relations: The 45Z tax credit is a significant contributor, with the ethanol plant's carbon intensity score allowing for substantial tax credits. This forms a large part of the expected EBITDA range.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.