Gevo Secures $1.46 Billion Loan for World’s First Net-Zero Alcohol-to-Jet Fuel Plant

Gevo has secured a $1.46 billion loan commitment from the U.S. Department of Energy (DOE) Loan Programs Office for its Net-Zero 1 (NZ1) project in South Dakota. This conditional commitment supports the construction of the world’s first large-scale net-zero-emissions alcohol-to-jet fuel production facility.

The NZ1 facility is designed to produce approximately 60 million gallons of sustainable aviation fuel (SAF) per year, alongside 1.3 billion pounds of protein, animal feed, and corn oil. Using 100% U.S.-sourced feedstocks, the facility is expected to have a net-zero carbon footprint, contributing to climate-smart agricultural practices and boosting domestic energy security.

“This marks a watershed moment for the Net-Zero 1 project and a critical step forward in Gevo’s mission to transform the aviation industry by providing scalable, sustainable, and economical renewable-carbon-based jet fuel,” said Gevo CEO Dr. Patrick Gruber.

As South Dakota’s largest economic development project, NZ1 is projected to create over 1,300 indirect jobs during construction and 100 permanent jobs at the facility. According to a report by Charles River Associates, the project will generate an annual economic impact of over $100 million.

“NZ1 will kickstart new growth in the economy, create jobs, and present additional opportunities for the agricultural community in the region,” said Lindsay Fitzgerald, Senior VP of Public Affairs at Gevo.

The NZ1 project is expected to serve as a template for future net-zero projects, accelerating the commercialization of SAF. Gevo anticipates that the DOE loan will attract further capital investments and reduce the project’s execution risk.

While the DOE has issued a conditional commitment, the final loan disbursement will depend on fulfilling various technical and financial conditions. The project is projected to offer high-teen returns to equity investors, according to Gevo.