GEVO - Earnings call transcript Q1 2024

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Operator

Good day and thank you for standing by. Welcome to the Gevo First Quarter 2024 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]. of today's the being first conference Eric Vice that like would speaker advised Frey, hand Strategy. to over President be conference recorded.I is now today, Please and Finance to your go Please ahead.

Eric Frey

afternoon, Gevo's and I'm at first for Finance Gevo. quarter Good With President for Financial joining Relations for I XXXX. Strategy. participants ended This like results Frey, also is today Vice everyone. us start of Investor by Thanks responsible Patrick here XX, Eric today's Chief Lynn to company. period the introducing Officer; from the Gruber, to would us Dr. Officer. are and March Executive Smull, discuss Chief

relevant answers and We found provide release discuss. A certain the Investor these forward-looking and Earlier this GAAP natural incorporated sustainable currently update reconciliations with topics Commission, which Innovation is and that Securities also website Chief in anticipated. to earnings project, questions, addition, Officer. filings our from our and our Bloom, section. that Litigation and www.gevo.com financing, at we Private by fuel our non-GAAP that different Chris Exchange are aviation Those call. advised we plan These this of and which statements be in Reform the at results any be in release, our gas our contain subject reference. may Operating available on be of obligation www.gevo.com.Please today, statements President issued described include a Act. construction our projects, actual can and found renewable projections be Chief forward-looking on outlines Dr. executed about Securities today, website engineering, to we disclaim the to the have of timing, could the uncertainties are risks forward-looking press to Relations We Officer; those other materially statements and may Chief release press development, financial the information Dr. definitions our Ryan, recently copy your within on The meaning Paul to activities agreements, Carbon statements.In Officer including cause remarks

prepared the that over call public. available to is Investor a we the to are via conference would be call like to Patrick the Pat? we'll CEO at of like www.gevo.com.I'd Gevo, Gruber. I now questions. for simultaneous call everyone webcast Following this company's media, remarks, will turn open remind A the and open the Dr. the Relations page providing to replay to

Patrick Gruber

thanks for Thanks, joining on us our afternoon Eric. everyone, and call. Good

came guidance to will we here he's utilizing credit form call. I it program. which previously XX-Q talk of key announced are Officer, I to ask more our IRA about when very Financial out, Lynn recent that We tax say began on repurchase comments. information filing our SAF our items you filing today Today, after detailed more and this highlight to a to like XX-B the and Section Chief our would we have is Smull, this also couple give from deck for refer that encouraging.Number about say one, stock

various be that the developed. think on property a gas comment other market NZX That project we outstanding, this a share. at a progress is cash share a my to robust ] that startup [ number can of positive price our divide $X.XX renewable if adjusted our double undervalued with quarter. called at you our alcohol-to-jet and first EBITDA, that cash in well-positioned wholly-owned Obviously, was business will of times natural restricted our common equivalents, significant Verity, we Now, shares have cash, since portfolio cash, portfolio is has a toward the we tech in along you that by carbon intellectual with standalone addition see about sites the approximately is accounting greenfield where that call look shares worth alone

little Chief of also say through the and Chem, expected our our have the triggers alcohol-to-jet payment.Number that's close. of We we range reduction our that ethanol to fully next Ryan, spend have to from project. from expect Officer our to ETO about million. milestone we'll We called reach it the revised project, made $XXX Chris our or more aviation next-generation year, about now royalty on sustainable LG phase That Reduction which fuel previous Inflation on with project will is have up $XXX guidance call.Number the January under yet financial tax financed of glad finally the X, scale Operating another to I'm Net-Zero technology two, Net-Zero until construction Xst spend million three, million $XX XXXX, that President a million has Act. X out this Greenfield fuel XX-B credit Section a we $XXX this the bit chemical in later came

more We've to comments properly It uses many about. the moving It direction practices. been of enshrines GREET into That agricultural carbon XX-Z.Now, clear well it's the of the be to that clear the to else without it's interesting is the is $X.XX world, rule, comes In germane not that to different about design, at there, since ag than CCS XX-B for it advocating plant recognizes to which to in gallon. precedent. members set XX-Z, looks towards include the the money, see in later CCS beyond. includes of to NZX million play intensity have into anyone and plans in out further. coming it. of practices, the climate exciting. But The since taking be that's guidance it gallons I into that seeing. expires the the can Now, model, reductions proprietary it the and we're this. account more itself XX-B going have for our our means want million sit. note does talking it's precedent a been under that smart XX we interesting jet Ag from section I which rule million in want say it fuel $XX there's XXXX what $XXX like been XXXX. it's right care mostly plant, it XX-B work administration, achieving like pretty to good It's step Argonne be we've I It's and of potentially like a to going to it very years. really a progress. or you I improve of looks end $X.XX revenue. we'd even do I when and that the

all XX-Z. intensity done SAF potential at them. would to it our a In tools the expand starting good, good rules this that. pad of have year, good a $X.XX credit. of carbon is fuel Ag again guidance $XXX like up per a the has will or of to USDA launch the The guidance work looks more expects that verity sustainable million gallon the expect be he using But Vilsack be the value The to disposal, our production We practices, aviation it guidance. carbon administration smart to XX-Z is also that's there's as of XX-B refine XX-Z will Secretary point. for indicated zero of counted that we climate lots aid course foreshadowing represent solutions, if well-positioned XX-Z recognition XX-Z, noted have of is tax agencies of

deep By as look you carefully as an could our detail. Now, cost, this help alcohol-to-jet the if what? cost more plant rules. about our of lowest and Investor we have the goes accounting see on be XX-Z more a Relations that credits carbon this Verity, projected believe, to CCS Paul all done on that of This deal. Net-Zero GREET our Carbon which number why We've on to owned of give investors bring website, Net-Zero update we carbon abatement first constructive. governments right conviction those should give proprietary carbon.If their integrated take Ag. startup. work economics of us It already investment. going that's lowest to presentation reviewing upon a climate direction track. not haven't plant when the help the know as indicated dive This guidance, a down and there's and designs is, have Bloom, Chief even But we into Officer, cost to our Officer, -- done. you on include include potentially so, stands, posted economics, at $X confidence project please bringing it per the we to a clarity you can been includes will for depending tech it's to as Chief Innovation factors, additional should of be route ton, wholly the They've big That one the smart competitive we our of abating impact.Finally, Yes, those X very low the economic the deep incentivize

it pass Lynn? off numbers. one to the of through item talk rest I and repurchases to and the operations Lynn share that I'll number mentioned, the Now the

Lynn Smull

Pat. you, Thank

During RNG and project sold $X.X QX of XXXX, interest quarter MMBtu sales $X.X of XX,XXX $X our Northwest the of the attributes. Iowa was sale million. of RNG environmental $X.X for QX from net million included proceeds income million the Gevo's million RNG. Revenue

into from the compensation million, quarter, which of remained interest we by a Our is due stock-based corporate million RNG $XX.X bear million that green Xst our letter of increase increased $X.X is April of of $X.X to $XX.X first the related at credit RNG costs.Debt remarketed new quarter at spend this quarter personnel for $X.X X.XXX% bonds mainly and G&A and capitalized the remarketed XXXX, investments. end reduction restricted to into was and excluding of non-cash on The million are credit. of year. of project backed RNG successfully bonds unchanged QX $X.X cash, comprised a of $X.X in $X.X after collateralizes letter We million RNG million invested is bond fractionation million of portion $XX.X and projects hydrocarbon liquid QX, our skid. cash million a in approximately liquidity ended business, cash previous of a $XX.X million million, credit.During X, bonds restricted and letter our million other $XX.X and we with our for $XXX.X cash position from Net-Zero million the capital The

in support million requires the close. financial value and $XX.X We X into for $X.X business enormous our of we which is the thesis, development we deployment partner in to invested which costs Net-Zero long-term our upon million shareholders. value reimbursable into prudent project, capital our wind see advanced maximize advancing expect to hydrogen addition In for

close revised X million For $XXX groundbreaking example, spent we of continue process, will advancing development financial guidance saw work discuss, a minimizing wind to until prudent project that to that invest $XXX to we we as when believe to and deployment, close funded previous can. the further we in reach project advancing on is XXXX and and would development mentioned, Gevo financial inclusive save Net-Zero deferred activities after costs which million, was through staff. in commissioning.But whenever opportunity on the advances.We $XX for path the X, while year, market demands QX put $XXX close from capital construction ATJ Chris can the be close, project to this development to capital X to meeting and for plant We fully our through identify towards from million and required be the downwards million I to and of this spend hydrogen Net-Zero spend guidance to of $XX.X noted in continue Pat million the learnings will January

common our repurchased of we more Net-Zero year, disclosed use Operating repurchases approximately stock involved X. approximately the President X.X program. for Officer, common capital talk $X.X Another will and of about million.Now, of stock beginning previously million the stock Chris Since our Ryan, under Chris? shares the of repurchase Chief

Christopher Ryan

Thanks, Lynn.

of directly Senior those their Net-Zero don't overseen and our for Gevo, deployment. I'm who the responsible know For you projects at and me, Executive

Net-Zero As Pat requirement expected to we X our reduced mentioned reach spend earlier close. on financial

is We're appropriate. time needing able that number far continually and gets spend expectations to Net-Zero don't for spend along reassess to refine way to than more we wind expect horizon X closer half to about see the our to and the down. of for financial ourselves pleased the X third close spend engineering equipment. be bring is Of As as Net-Zero a hydrogen and our We so that. about

pipeline for reduce detailed Gevo's us designs at expect investment engineering in works position and property sustainable be We projects to prequalified we us in to we've of as future low around Net-Zero produce carbon puts attractive to financial recoverable COX South can that spend the leveraged But close. to aviation hydrocarbons Lake and most projects. future will Preston potential low SAF.We for having intellectual move and that fuel of aviation save for anyone money production us site as carbon risk sustainable sites Dakota for expect our developed specifically This to slate with Lake and fuel. the the of Preston that producing be X. time, But keep forward and the still in who to hope a want Net-Zero of see see home we've

Our of these Department a typical upfront is knows, engineering finance work who balance of but and worked on one the more lot risk loan on sheet much required as going mitigation Energy project. guarantee than anyone there's of well, a has

more plant's us footprint, carbon requirements. with guarantee Likewise, agricultural in mitigate to for ensure the Our carbon of that size future increases execution construction of region in off-take risk finance Lake twice already contracts Preston, a phase. with us of It's room the the than smart is the the and which farms plan we are demand guarantee DOE's the reduces location contracted climate ensure partners turn fit That DOE use corn EPC the requirements partners to the with where footprint working our abatement. plenty a site loan to loan our which of fits the surrounding we are our busy in there. projects. use many own to the practices, feedstock leaves bolt-on of working

product Iowa, not not which RNG our utilizing from the by plant. us and can far there West like Canada fuels. in of sustainable in gas has in that The at California, in airports far those to Minneapolis Our our optionality the the access based SAF credit trim Chicago gives Coast also which natural carbon location can business airports for low aviation intensity fuel our also Northwest distribution. where has also a renewable to states incentives wholly-owned is carbon into tax location our a manure That's and with we from carbon SAF gallon. We both are get low are markets $X.XX for fuel of get rail

know an prove getting is manufacturing years required audit finish to and the One That's to have through past from of the of we value launched Verity field things what customers our from they're to trail the why policymakers chain. experience to ago. from of that's few the sustainability start we a

start it hand Verity. Carbon Chief Officer Carbon to a Chief telling share Paul and over Officer, people Chief I'll Paul? to Bloom, latest our Officer Innovation So the on by Maybe he does. what can

Paul Bloom

Thanks, Chris.

answer because So chat a briefly, Chief this Carbon year address the sometimes, to question get What it. is I I fireside Officer? asked that. last did me let

shareholders that and measure, aspect the aircraft, report, with in a critical of about field to abatement can to and of high one intends can markets make every of compliance In trust seat Gevo for startup tech those from the level the while that to value sure of chain, and job is I it, Verity. my and value our count avoiding double with haven't carbon business, provide voluntary primary our supply it of on we and carbon customers value entire that while end, capturing To tax carbon and For sum the it the verify leading accurately the can digital supply you is tools all transparency.Verity chain. carbon all is accounting our fully called counting. across that abatement who we wholly-owned up credits, my maximizing the responsibilities carbon seen from abatement the our entire Gevo, throughout

plan in landscape. developed, XX-B and Section future SAF simplify XX-Z Section help to the the are policy in and use Verity ever-changing we tax accounting credit tracking, an like policies auditing to credit As

base to We climate initiated and Verity stakeholders. expect the means farm for the at privately the grow We customer will a the data our increasing truth.In claims XXXX, and of continued Verity requirements gain for first of biofuel the first confidence importance the support in give By sponsored other we field client. to in Midwest definition, level. program consumers quarter

engine the and transportation of the letter of of a carbon-counting to decarbonization with signed intent to in we freight addition, develop States. demonstrate provider In drive solutions heavy-duty technology United

are also are More the at and addition and carbon supply agricultural to tracking or make to are and for reducing future. carbon farmers We've the heavy-duty great today are fleet vehicles can revenue first tracking meeting Using money. solutions field in their are continue delivering with started in bundling. reduce After policymakers got field practices start helping work under I'm they want for know farmers we with announced incentivize trust.I'd they are of right. farmers discuss to climate forthcoming reiterate to as to seat hard certain all for there we to We development solutions carbon done thinking something the best year. rural to farmers we footprint. commodities now, and we Q&A.Now, for food, through our foster feed, SAF, to and we practices we field from as implementing a incentive is don't of require products soil. sectors.Finally, additive, industrial expectation the focused that So will practices today, be abate leave with has will taxpayers for sizes emissions about accounting, like that program. agricultural use are there progress now, for flight to USDA to level on to for I'll questions emissions in working and in market the hand anticipate any at smart and further from carbon previously over transparency chains go-forward. benefit if groups field science, account farm implement, track all great underserved variety that Verity We about want achieving all, accounting all reduction Gevo and that to fuels, smart By to are to farmers, this the intended to going grant the details sequester that workable climate it Verity adopting back this and exclude and in who with final consumers, of the using everything making rewarded but while Pat. be payments a footprint doing tracking best it economic happens we agriculture where with biofuels our their wide

Patrick Gruber

Paul. Thanks,

Paul heard and It's in the way about now We're for this you here, exciting alcohols project about X just this. numbers. Lynn globally. talked in Verity. So and discussed with close there's supply thought Fundamentally, to pretty our effective out talk cost that enormous years. ahead and about a having U.S. opportunity. we carbohydrates see stuff curve Chris an our I want the of Net-Zero

become chemicals enormous carbon alcohols. we fermentation and with and can effective We for supply demand also about themselves. We're diesel low energy. carbon well to we that combine We with could of lowering make use There ethanol converted scores we whole in because our see plus thing carbon dots and them forefront or over and long-term, derived then wrap demand see compelling the low us, renewable be vehicle it time powerful. modified be changing be may help alcohols it technologies that or which the might innovative make therefore that. operating techniques abatement at chemicals. ethanol we carbon to fuels gasoline, photosynthesis the value team's carbon in cost as provide fleet going can be plants XXX repowering connecting or and to alone. that It's alcohol-to-jet. might implementations, existing be In low being available to CI It when be the provide see abatement drop do are great the what in or that and from catalytic using U.S. between that the they the We

products the focus all are game. chemicals fair that system, for on we business any be Net-Zero things are these we game It that fair those lost But Once on would of fair to SAF shouldn't commercial are of of expect enabled. establish first. are We'll anyone us. them game. All see

our have numbers heads systems plant the and at sets direction that believe up us carbon We future. business abatement the drive the of Net-Zero technologies business proprietary the of designs, the take integrated abatement and designs to in the X low. be world in can so that CI system carbon forefront. whatever us We It's

the atmosphere. Ours is business with carbon dioxide begins system being a of that pulled out

progress.All world processing carbohydrates nature together. Let's fermentation Gevo fuels and knows via chemical while the we where converts and photosynthesis fuels not it's cost chemical work photosynthesis puts are into the alcohols the capturing those plant. through from got that's industries. between between Ag talk to of we provide that fuels and We're to problems, into value you have olefins refining, pretty for the it's have We're chemical and plant, ingredients products, business industries. position. potentially Alcohols the over bridge two be a focus they don't chain And fermentation industry right. We The fermentation. separate other. customers, are chemical olefins. games and crossover Well, that that work, climate across crossing no growth. of like that side chemicals. converted these bio fossil people. as and into to They're chemicals unique industry of to then establish and in well the going all mitigating in lot If processing on It the business NZX the The carbohydrates change electrons and link the It's what? business needed system fossil-based financeable layer each throughout. produces links as scalable trace system hold Where and a the us making deliver a Ag to effective. the carbon side and a energy cost, solutions alcohol Ag competitive use a whole the needed the making it's It's Verity deliver issues. the smart normally do the chemical know a convert we gap and in the Ag played. for low catalyzes atoms we hydrogen we're COX the separate historically system And track system solve via to food what's to industry land to and world and against new in the the long and transition a so approach previously then these run

open questions. up for Let's

Operator

Thank [Operator you. At time, we'll question-and-answer this Instructions]. the conduct session.

from Our the of Water Peter Gastreich line first question of comes Tower Research.

Your line is now open.

Unknown Analyst

Yes. Hello, thanks your and on of XX-B very a results. been the to regarding credit call I for advocating much for your hear that tax the because great company's congratulations number also years. It's know for

expectations. the So Net-Zero is here your question my cost new X and regarding

call I'd mentioned You ask and color very hydrogen. Thank could just please the able cost in more cost wind costs and engineering like you you provide reduce the much. were to a bit you for to those that if around cuts.

Patrick Gruber

that. position you're best think the address to I Chris, in

one want take that You up? to

Christopher Ryan

Yes, sure.

looking is equipment we costs, out EPC and But phase as with of financial but did push pushing At our the wind ways is close. close. same until development, back we hydrogen after after to we're what the time, basically our So the providers only and execution cut negotiated project majority not well. for and in till it the payments costs

Unknown Analyst

very you Thank much. Great.

Operator

question. next for moment our One

question next of the from Boehm Our David Thomist of Capital. line comes

is line now open. Your

Unknown Analyst

thanks guys, taking Hey for the question.

sort for the had is indicator model I'm really X your that we've range you if XX-B in you've hand. a numbers from model first any Net-Zero what to CI like. have wondering provide put government looking that Now Kind had of days of to the the could this. some around couple

X that on be helpful. Net-Zero range CI provide you any really So would

Patrick Gruber

sure. Yes,

integrated this, things that a focus a where lot one CI So in we our on score. like the we've of plant design, lowering

any from itself we our down than plant if different how rest. energy, design to and we that all plant do Our with integrate the points about it how real That's had takes XX just unintegrated. a was ATJ I by XX

of to we or the that ag in they're okay. XX very the see climate advantage.Some points guidance we're in start So ATJ that [indiscernible] the XX before XX a off, with bill else. range, or significant talking smart We straight IRA numbers about came CCS to Subtract at. anything or XX the out,

a all it's it, means There That's the specific. in would right Look, you they did crazy our smart GREET Great. are know make you that That's plays be, how point They're point included to without reduction from $X.XX. adopted too. that's what the It's to in. Verity because time. business in profound. rewarded. model the by by this our tracking, going question going messing stuff need awesome. is we All it I'm going And see making And than already the under XX-Z by So direction. it, way setting on to be and is field what? field It precedents ag it it with of They confidence I that CCS. going no point The hit else. a sudden And better believe will pretty cliff they thought right. and they we be differently. anything take getting to This excited or work we'd XX-B, treat in are to slightly climate where the they're to get $X.XX. at and we have it.

And going front. think on that so we're to win we

time is and be this around very don't we I'll done. the zero if all So said by wind surprised up

get In CI score, would us terms of that at that $X.XX. a

darn darn So It's pretty I'm encouraging. up. it's pretty fired interesting.

I'm can psyched. I'm up. You fired tell

Unknown Analyst

meanâ€¦ I too. am, I Yes,

Patrick Gruber

mean, with her Relations. the this? Lindsay Vice President, who is got She's me on sitting comment aâ€¦ and it's here. I Government Lindsay, the she's one take, Fitzgerald to Lindsay I you want

Lindsay Fitzgerald

that is got stole of with to you be. points, And place modifications. but This a minimal great all that my very Yes, a ag, built-in we smart being climate are for is seeing first what we're to GREET see understood. this is the phenomenal time to want and point this farmers we off recognize XX-Z. again, under do. something jumping trying help It's It's

So I'm ecstatic.

Patrick Gruber

good. that's Yes,

Unknown Analyst

And a out makes not I'm DOE, the of know getting but is Net-Zero if part XX-Z guidance sense. yet, it's place. a of this starting great as fully me wrong, did correct? Yes, I correct for together working the going you judging put are also the XX-B they're ones guys It is group the that be DOE is sameâ€¦ guidance, loan, the correct? who And that to ton

Patrick Gruber

is It is. -- it

Unknown Analyst

guys who's giving loan? organization the rules the who's as Same possibly making you this one

Patrick Gruber

They're working it's all departments. we're people what we've it. sure an be example are, group, But the the that done the different I and for when to of we're big on prove organization, can right, that making of rules done same because know data mind we got the the

mind. also on They've administration itself, group EPA, DOE, that working provide them And others. is the data we directly, the DOT and told us for the and so their and that

carbon want me talked this carbon And so to approach. selling about because gallon monetizing sides of lot it's to game tracking in tell it, a plays information it's just measuring mitigating many you'd with your see gallon, fuel they're that the both We with system, our just score. guys is big the that people marketplace getting, CI like this, a whole be the a It's fuel. don't this competitors, you throughout of astounded how aisle. Don't of and freebies. money I companies No, the That's lot lot these real a that kind you a what? that on. this concept how drive that.And we it abatement. all measuring can that no, in track it. of for proving of hey, We where provide trying the A along so of it. sides politics, they a doesn't just, do That's both resonate. here you're by proving a They and And our to That's carbon space. it, And all about we help. you too. abatement value, about talk for sell jet to jet business ask people talk know not getting about we're do of from of something when lot out we're aisle deal it, And having too, is from you

it to drive freebie improvements way a I fired seeing rational, these I'm lasting up in like that's seriously fired It's really without So it, stunned, pretty I right than great. I'm I'm a up, systematic I I better right? and thought, fired direction. I I the about It's a policy So So The more about, was lot. serious expecting. are am actually. potential thought wanting think a guys like right? giveaway up. has I what was I'm think being getting

Unknown Analyst

just I can. more for if quick And one me, one

reduced the guidance appreciate the the in CapEx So buyback. spend, to appreciate

$XXX to looking at So you first called after in $XXX I FID a million of the market spent to $XXX cash and am quarter cap million. get what million

looks question $XX my $XX why stop and on authorization of you guess still could I entire at million back the buyback? the have like left. cap company the So It the market million is, buy

there buyback makes do to what's the are limit what on so guys So when in sense, going matter? the of the terms for that valuation you much

Patrick Gruber

Well, we to and buyback have those that things. a all of kind view. There's parts a couple

doing to. And on. so buybacks pay we there working on have to been that We've attention

the want when the want back. really really For stock my we're I I buying stock mind, back,

spending because So I the stupidly be we back. cheap think when buying and it's should it too I'm money,

it at use it need for it we we if we'll to. and XX again at we that set now look so if all, expand it and And then

money, too. or needs into can opportunities or other multiple is comes so our have things for might accretive like have play. be plants we stuff -- we all that that do other There that, We that

waiting NZX to get than And around to us for cash, profitability a it carefully. our so to get to decisions make We're going to built. whole sooner try attention manage to the lot

want And mind. this? you on things kinds so all comment Lynn, our that are those of to are on

Lynn Smull

Yes.

develop accretive I that. in delivering business be massive mean, opportunity. a cash forefront balance to buyback is, alcohol-to-jet shares, the think of that we all sheet. technology on If to leadership we as abatement And to there. have into at have a the interest do everyone the is won't for do key were can that competing think we'd we see left we're enough Gevo the resources, our we opportunities SAF. be And without with it's able not I I carbon the with capital

point. So most wouldn't likely stack at And we this there. that of why whole that's the there's a shebang for trade-off equity go the

Patrick Gruber

that, to it large that get to a getting this, appropriately. think of And streams attention flow decisions we're on doing something. to measure I pretty pay EBITDA is intent And keen see look quarter RNG going when the If have business well. I'm not all or to more have sooner, I of profitability quarter, along doing We're keen make about by us; I'm it and that's on we cash Getting getting two the be opportunity did, up. that. us things. at here thinking We'd it the be premature. would lines I

going are [indiscernible] the to contribute. down We get approval and eventually

want sooner one ever rather If I shareholders not can do I to -- the I I And simple. top actually real company this to want raise later. not money get do do at It's than corporate I'm of the and again, to of level. we're Gevo to profitability want So here that.

where put prematurely. we're And to in cash so I a short want don't us position

So attention pay go. we'll it it, conserve measure it, to and

Unknown Analyst

guys. Thanks

Operator

next question. One moment our you. Thank for

question Derrick with next Our of comes from Stifel. Whitfield the line

now is line Your open.

Derrick Whitfield

legislative and team, on your and congrats Good Pat accomplishment. afternoon,

Patrick Gruber

Thank you.

Derrick Whitfield

Perhaps prepared question on building on policy. the I XX-B Chris to open comments, wanted

more the qualify As the defined what's the today? XXXX? corn take SAF surrounding credit could about And would How ag feedstock Preston in then would Midwest I of think was site qualify smart feedstock the your your broadly, that of or qualify much climate the on in Lake expected corn amount by way guidance. today

Patrick Gruber

they they're way -- to they're to till, think I like a have think low I the we the scores. combination going don't to low and bundling. I if -- that going and to don't till It's XX-Z, in no do think described Well, -- what going right, do it they the that to read with be discrete -- get to going specific you're really

going You're then it fertilizer -- with normal built that also which into and abatement all pretty has stuff. need is combined to crop, that's pretty some cover

I of in XX% acres already. country do the that the think

see. said yes, bundling well. it it. awesome. see it's to a what the auditable, thing We field. trickier measurable, XX-B, question want they answer discrete, with This show And your it. in that how lot -- much, be you're to to direction It's good actually that's they by did the field want wanted question of there's is the does So measure a of to how going to we That's that they to have

something that's doing. long I we win like the over is don't field. measurements is point. plays that's what And also bundling. Verity like like important this course, field the run. real and really of it by I I So real because how game data,

So it. we that's how view

move of point. jumping by discrete measurable, field field, it to god, to off expect going take curve. good work, ahead we're the I auditable, has certifiable by by happen. And that's a it's a That's data, to parties. So third what Well, but little

Derrick Whitfield

treat your do And scoring the kind in Or is market? of will for forward CI Illinois think based moot then target point a this Terrific. you how time, looking carbon being project? on

Patrick Gruber

markets target programs place. are states the that Well, have in the already

You have Oregon, Washington, not California, else? one that's have Minnesota's finalized. you Illinois, have -- developing you who you have quite

Lindsay Fitzgerald

New Mexico.

Patrick Gruber

Yes, Mexico New has one.

yes, And it's it's so, optimal. going where

be not the going It'll you play get need different everything it's to market and how That's we the game get sense it needs, wherever makes optimization. it in shipped to that wrong paradigm. whatever doing places enough that to now idea has put So can to done. California, the

also Canada. You have

game So it's different a play. to

doing Minnesota. to and we're years, their going Mexico like a kind next It'll be that seeing they're We policies in or to New that. states Illinois focused of own same expect few on more or be over stuff that be the thing

everything to So it's or go to toast. California has you're not

in what, land that's we somewhat and tell. I okay, the direction. it idea believer there's food and for not not a numbers taking of good. using about statement that. I way, that's at And to way, it Turin, the the do do fuel, right about people Turin talking notice versus And UN, is data you Well, you international using you'll land GX. was guidance, that's and It's this recognize It's for were on direction. for how that this way this? use they several this, shifting impact? raw fact I from and just Europe I'll crops energy exist as chain they're you that's perception sign tell you, of true. for think around think it. a to is materials we're adjust way food that are an to It's about these using the to joint use but how crops All those world biofuels. course, was crops. also and This the starting the does Hello, is place. for thing go and where the carbon and anything biofuels. Italy, shouldn't because real is doing of it's fundamental first kneed to Good. the changing can metric are weak is, not its I'm interesting. And it. -- the right the down. down on It's just ways perception they false -- a who headed all this will it's about of are things. just back The the world important They're indirect I the know who But feedstocks That for about of think Now generate talking going is paradigm. protein people shift. it's is a can generate In the fundamentally artificial, real in indirect

And portrayed. it's play that's and so it people as into something starting that recognize to understand that that's coming are isn't been

So be there that time, organizations. as as California are this takes data going well will is And to comes more maybe a years. data good. But It's adjust shift forth.

the smart said from the under as heck show get they a to we because face to what it develop and see of then in it's the the persuasive of they we'll programs. ag and farms we'll say. And want will lot as our them environment data, data as flies climate data the it develop conversation. Great, going the So we goes, have

Derrick Whitfield

the value think Verity how just actually I industry and value could we're value I Like think if creating about. an talking policy service of scoring? of fundamental last as your Pat, the throughout And XX-B, by about question evidenced should role fundamental about guess, with in, one demand by CI do your about inherently how that the increasing the guys service you we

Patrick Gruber

that. than Yes. Yes, and bigger it's

going Verity around address value the And like I'd and of you come Paul, and to that so to options how I'm this. a him different picture here let Paul it. we to see give parts

Paul Bloom

question, accounting that And Verity think sure people in to needs to lot be for the why Pat. was carbon done. I thanks the this is simplify a we created because of first help place reason really the main Yes, thing, the

producer with we're we to So signed not climate and the like benefits can simplify to that from we simplify that that things right? things, we're together sure that have can for and into are Chris the ethanol So of we seamlessly trail intensity from everything addition talked producers gallon the connecting in up right?And we about, things level, together, foremost, and Verity. carbon simplified transfer whether connected be farmers, up same for who the renewable making so that making total calculate doing that natural it's bushel for that intensity we can that wind those the by happen, that like value how do a the at smart all carbon carbon first the sequestration, then energy, agriculture Gevo, companies SAF audit capture, simplification gas,

the that don't compliance you the table markets, do with on distributed So we're or doing of complicated, reverse the making that to and that right? big we're bring. going together, of any tying tracking that's really say goal we doing can a so the could markets really tax we to this credits, want carbon claims this But benefit going do bunch bringing forward, spreadsheets, And we'll auditors. leave ledger quickly. but in the you're leave technology, And behind. with any that something really, auditing simplification where seamless if really otherwise it after then with substantiate always We that's is voluntary not to we third-party

do. and got to can all you So that help people capture what value we that's

Derrick Whitfield

That's helpful. Thanks time. your for

Operator

Thank you. One moment for our question. next

Our line Joshi H.C. Wainwright. Sameer comes the next from of question of

Your now open. line is

Sameer Joshi

year. revenues and I area for customer and Verity expect? later Maybe this about of Thanks the Paul's should like, afternoon. Good Thanks. will ask questions. first this my is what base Yes. Which expected kind taking take we from what

Patrick Gruber

Paul?

Paul Bloom

the is a track we've We're we realize times. think this created as that obviously that Yes, foremost we mentioned many is sure. But aviation need that we've for our we need. others Gevo solution sustainable fuel. the first what to with start And solution and again, I Verity few

in that. services intent quantify So supply technology today, users the that of that ethanol chain sign connecting letter the clients with and of three this fleet then signed we've got for an fuel of end that engine carbon sure did connecting mentioned we be up. service and the We we'll intensity fleet to can even manufacturer, their make capture

with again, needs. carbon about fit. renewable diesel, biofuels you ethanol at So think one. the good then biodiesel But We're producers XXX that's there, a is big also tracking out looking that vertical a

and vertical help LG expanding adjacencies think tracking and this while rapidly products, where now, like talking and food, biofuels into need transparency carbon feed industrial other about chain, we we're with what this the value focused things So on the we're Chem. through we're

Sameer Joshi

Actuallyâ€¦ Yes. Understood.

Patrick Gruber

I going to Yes. say. was

going is it and there. -- it's number million, get asked his is think of and gets it'll few this to good kind of from it and coming, a coming be be weekly always on And So probably in we terms of is question, on the a basis, kind I about And actually. it like that numbers going Paul, it's grow in a it'll nerves. I this

you be this for But a And too. chains services type cuts And and huge so what's won't to across initial XXXX. I it it's with it real number. don't And of year for paid initial that service fee, what? has potential. it partnerships fees be. expect thing. know customers, It's is and supply interesting being sales not It giant in

low then So people You the then we're and want you have But the do how products stuff the feed animal measure of carbon plants. on what? agriculture focused the ethanol potential a through in beef. stay for and how around who tracking also the you know basics farms transform

comes hand it. with just hand And in so that

is the that talking be from field that plays be Verity audible, out And loud XX-Z game where what direction So interesting to we with to it's you're they headed level, like for. straight They're play. said about an like going I getting about to specific. a designed what to they're quite through lot. XX-B traceable, and this I

Sameer Joshi

agree that and the XX-B for potential enhanced Yes. XX-Z of opening The on further No, that. completely the market. by Verity

we will On see I are steps know the should we the what $X.X think. be some how should I ATO, and next steps then next million, to that be what expect with LG? But getting you revenues growing? the

Patrick Gruber

Yes.

I answer to electrical Lindsay, that pilot bigger that, a getting And small or a is if Paul jump you right going So, plant build And plant. it's something, step demo to ahead, let now about I'm miss to in. But next going it's okay? dime, the alcohols, we alcohols And And we aligned to is the deal not Remember That's We on the bids. to property. a want. ours. own we're olefins. what for LG's This to us. good use get strategically our process, in data. carbohydrates

those We selectively make have into olefins an make can improved technology it can propylene; for also we fuels. we

So our into business. leverage we knowledge fuels get to all that

-- in big. win-win companies focused little what fascinating So lot mean. on This this. our here incremental could improvements. deck, it There's improvement. a big And are of what's is shows And improvement. deep away. it's a think are dive some about about I it the straight A this savings it not talks It shows is some

not up -- couple But years and now. ours. be wish going cool and you a for it It's So what? exciting. it's ready fully I It's vetted, it's to take pretty it primetime scaled commercialized. of pretty it's know get to to was

of a that's So fun. lot

Sameer Joshi

that's No, Yes. true. no, Yes.

DOE a we level insight can the on keep timeline just bit can it? milestones the that loan, for little you maybe and more the us On so just next engagement of give track of

Patrick Gruber

Yes.

get So I engagement the They're and all their The is tell. hard this the bureaucratic. butts comply kinds to government's is They from working can with, level working of I can high. they're here done. you DOE The government. tell rules this, to got off

think think I each yes. the at is The I they it lot. other was talk earlier answer all question helped a do the to DOE. about And

know route most cost carbon abatement. and low to we the that all it they think because lowest make carbon helps have score, alcohol-to-jet I

with that guys, they and and think why, know see and so And all can this you -- transparent I with too. can they're it transparent rated see you it.Again,

how other You It's on can why at to people's to technologies. and compares go our look it as it. website

working Well, customer can Chris the on DOE map be on what getting mapped it. How out, they're be engineering it. that. take? adjusting So what talked We're side, figured the side to to the does long done about details done it could

more And specifically upon you on to on so that stuff timeline. soon. Chris, minute, should that become more clear can relatively in I'm going you just comment call and a that

project So DOE go work Chris, the it's can it when well, project, to I to didn't. happen to and And a you it her done. we FI, closed to is not you going we're the then stuff Well, going time going because we it to hope, my here? happens hate said do when thought. everyone, we're loan in get say give through was to All at this exactly. on control go the want comment to get and

Christopher Ryan

tell from the fact really terms that just them really all counterparties Sure. be you importance has details. the too will publicly work that through the that and There's get much have DOE support loan that team the to and the Gevo we I explicitly helps of a we of real about is I all work. wanting us to between felt say aware office to that But told in it. DOE and DOE, of to with of we've this strategic as sense work this our us can't

months doing will a level on be detailed high say more to forward. definitively milestone. we frequent discussions, Pat next and something they're said, us, as are, everything's the milestone diligence think due moving a few I of able very But we engagement, key over

that's So all I can about say.

Sameer Joshi

to expect I Got it. for at that that one and this of budgeted And later then CapEx, in are Should that accounting mean Does just CapEx were mainly you or those in costs manner? it costs would reduction lower? $X.X do a Lynn. development a a reduction capitalizing last million different you project know related maybe stage. the we The any year are incurred that, a was for XQ? in the

Lynn Smull

to referring Are cost the the operations, statement? in development project statement of you income

Sameer Joshi

Yes.

Lynn Smull

Yes.

Sameer Joshi

Recently, reductions announcedâ€¦ the

Lynn Smull

reduction. the Yes,

of two think the probably items of that as -- cover a project ongoing the line operations to the much. close Net-Zero some Those in company, opportunities goes Those of inclusive will that item of slate exploit goes have a not to we G&A. it I things for costs range really are other to reductions to some of combination Verity, of the X. hit sites with once

capitalized portion down $XX I will see the down $XXX don't that So number to to the come million coming substantially, but million.

Patrick Gruber

Sameer, add And something. I'm going to

you of for. sites some the So multiple wonder sites. don't Customers just why. might about working want heck on multiple one you're tell I'll what you plant. want off They

of real, the have show deal can a them And forward develop something's multiple can that sites. go you is them you ahead so path to you part with and that got that

it some would available that and effort to definitely to we to we multiple have and cash sites we people say, show that do low. managing us here's go. could keep to we no, so point spend have on the And we're And where

in have We And nobody. story Here, credible there, to that no point could to because got things. over interested you one's and there. those the one-off,

build part So we to market. of what that's do to all have

Sameer Joshi

Understood and thank you.

Operator

One moment question. you. for Thank our next

line Our UBS. Saumya comes next Jain from question the of of

now Your is open. line

Unknown Analyst

net considered, And you you're on securing net timeline I as and looked guys. financing one a I help reductions on zero like, could wondering maybe, the you thanks, you other that Hi, clarity partner that into guess, into? regard well? or I any have guess cost provide zero looking guys two was to some have

Patrick Gruber

Yes.

this through timeline close. raising probably getting will traction. early the happen financial about this time-frame and on getting a So heard Net-Zero next equity, timeframe, that it's the runs Net-Zero year, X is go lots year loan late DOE will in get its of There's the built. the timeframe got that is, -- done, late you That

partners. done that So be is, could it brought and have quickly, we quite with of on sites we've Net-Zero all interesting. it's targeted. is X pretty They several

how be to that's going So it's done.

is, One much How all want that's part of needed? to plan of is all you So What's is we're the it? things [indiscernible] that capital executing. rate? partners see got the hey, the that interest where

level. of a special it's a finance level, This not at financing a point for done entity important at fundamentally would level. project purpose This Gevo All this a Gevo is the at done be everybody, in not where project is financing.

so meet And it we it. to that's how finance approach requirements, and has project

Unknown Analyst

Okay. Got it.

and DOE long would loan, all that? fully you do this then later that for say year, be year, done say Net-Zero you financial early the next you be close, is probably all when think the once and So X, and it construction how would

Patrick Gruber

timeframes, I predict can't hate you this, actually. normal to at that. The win

don't, months if things go takes So months. it's And little XX longer. XX right. a they it if

It's it Now, faster That's if engineers having building months-ish. building done it had have world. this to help, disappointing, was balance my I I'll it and bet. But own so, could without our off us you not okay, sheet, XX know I gets do what? this how in modern

Unknown Analyst

Thank you.

Operator

Pat remarks. like I'll to now turn to the question-and-answer This closing Gruber you. back for concludes Thank it session.

Patrick Gruber

Yes.

to is educate should this that to of to big folks, a year took. could it rest it team, work the these So this done. done slim people had gave it odds and counted. carbon. the of support no, idea do show the data We've precedent that's we that be the you all in can Verity The effort in willing them a we've XX-Z from stuffed be that there got things done that and to can people amount this, and tuned didn't believe put try be of really fact GREET, get for People fact, count with at the a they're into field could Lindsay in count The amount people deal. to congratulate to model you can level. in ago, my and and rest GREET get part, I with really work the that showing,

all that's so it. part of And

So I and a where feel feel pretty at, lot we're like I traction. good we're about getting of

at God, like got process. We've we We DOE. have stock with I but price don't traction good all, the customers; with our have by remains our money. traction

the thanks for So support.

have all you listened good a afternoon, have evening. You

Operator

conclude your for participation to this program. This does the you conference. Thank

may You now disconnect.

Gevo (GEVO) 2 May 242024 Q1 Earnings call transcript