The Department of Energy is continuing to negotiate a loan guarantee with biofuel company Gevo to produce aviation fuel, a new Securities and Exchange Commission report shows.
DOE’s Loan Programs Office sent a letter to Gevo on Oct. 8 to extend loan negotiations until April next year, according to the SEC report filed by Gevo this week.
In 2024, Gevo and the LPO under the Biden administration struck a $1.5 billion “conditional commitment” with Gevo for a South Dakota project that aimed to produce 60 million gallons annually of sustainable aviation fuel, which is a lower-emissions, biofuels-based alternative to jet fuel.
“The Extension allows the Company and DOE LPO to evaluate certain potential modifications to the project scope under the Conditional Commitment in order to address energy policies and priorities,” the report said. “The potential scope modifications include the construction of a lower-cost 30 million gallon per year jet fuel production facility (“ATJ-30”) to develop jet fuel production at the Company’s existing ethanol and carbon capture utilization and storage facility in North Dakota and the optimal use of captured carbon dioxide for enhanced oil recovery.”
