RNG Plant On Track and Authorized Share Increase Approved
Gevo Inc is a renewable chemicals and biofuels company engaged in the development and commercialization of alternatives to petroleum-based products based on isobutanol produced from renewable feedstocks. Its operating segments are the Gevo segment and the Gevo Development/Agri-Energy segment. By its segments, it is involved in research and development activities related to the future production of isobutanol, including the development of its biocatalysts, the production and sale of biojet fuel, its Retrofit process and the next generation of chemicals and biofuels that will be based on its isobutanol technology. Gevo Development/Agri-Energy is the key revenue generating segment which involves the operation of the Luverne Facility and production of ethanol, isobutanol and related products.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
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RNG plant start up on track. Construction of the renewable natural gas (RNG) in NW Iowa is complete and the plant is operating. Annual distributions in the $9-$16 million range should start in late 2022/early 2023 depending on the timing of approvals under the California Air Resources Board (CARB) Low Carbon Fuels Standards (LCFS). RNG will be sold to BP who will market it into the California market through an alternative fuels distributor. In addition, the seasoning of the RNG plant should allow the special purpose bonds that funded the construction of the RNG plant to be move off the balance sheet next year.
Authorized Share Expansion approved. At the January 27th special meeting, shareholders preliminarily approved an increase in authorized shares from 250 million shares to 500 million shares. Final results should be announced later this week. We estimate that ~202 million shares are outstanding and 14 million are reserved under stock/option plans so ~284 million shares should be available for …
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