Gevo Q2 2025 Earnings Report

Gevo EPS Results

• Actual EPS: $0.01
• Consensus EPS: -$0.06
• Beat/Miss: Beat by +$0.07
• One Year Ago EPS: N/A

Gevo Revenue Results

• Actual Revenue: $43.41 million
• Expected Revenue: $43.69 million
• Beat/Miss: Missed by -$273.00 thousand
• YoY Revenue Growth: N/A

Gevo Announcement Details

• Quarter: Q2 2025
• Date: 8/11/2025
• Time: After Market Closes
• Conference Call Date: Monday, August 11, 2025
• Conference Call Time: 4:30PM ET

Gevo (NASDAQ:GEVO) (NASDAQ: GEVO) is a renewable chemicals and biofuels company that develops and produces low-carbon alternatives to petroleum-based products. The company’s core technology platform converts fermentable sugars into isobutanol, which can be further processed into sustainable aviation fuel (SAF), renewable gasoline, diesel, and jet fuel. Gevo’s integrated biorefinery model combines fermentation, recovery, and downstream processing to deliver scalable, drop-in replacements for conventional fossil-derived hydrocarbons.

Gevo’s primary products include isobutanol, a four-carbon alcohol used as a building block for various fuels and chemicals, and hydrocarbon fuels that meet ASTM specifications for aviation and road transport. The company holds a portfolio of patents covering its proprietary yeast strains and catalytic processes, enabling the production of SAF that reduces greenhouse gas emissions by up to 70% compared with conventional jet fuel on a full-lifecycle basis. In addition to producing its own fuels, Gevo licenses its technology to partners seeking to establish or expand renewable fuel production facilities.

Founded in 2005 by Patrick Gruber and Andrew Dorgan, Gevo is headquartered in Englewood, Colorado, with its primary production facility in Luverne, Minnesota. The company has achieved several milestones, including the first sale of cellulosic-based SAF into the commercial aviation market and the commissioning of multiple renewable alcohol and hydrocarbon production lines. Gevo continues to develop new biorefinery projects across North America, aiming to increase production capacity and support the growing demand for sustainable fuels.

Under the leadership of CEO Patrick Gruber, Gevo has established strategic partnerships with major airlines and fuel distributors to accelerate the adoption of renewable fuels. The company serves customers in the aviation, transportation, and specialty chemicals sectors, with offtake agreements in the United States and Europe. Gevo’s focus on advanced biofuels and drop-in hydrocarbon solutions positions it as a key player in the transition to a lower-carbon economy.

Gevo Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Gevo turned adjusted EBITDA positive and reported a tiny net profit of $0.01 per share in Q2, driven by strong ethanol, RNG operations and faster‐than‐expected execution of its strategy.
• Positive Sentiment: The company has sold over $1 million in high-integrity carbon dioxide removal credits (CDRs) at its North Dakota facility, with plans to grow CDR sales to $3–5 million this year and potentially exceed $30 million annually long term.
• Positive Sentiment: Gevo monetized $22 million of 45Z clean fuel production tax credits and expects these credits to reduce cost of goods sold by over $10 million per quarter going forward.
• Positive Sentiment: Engineering for a 30 million-gallon alcohol-to-jet (ATJ) plant at the North Dakota site is underway, aiming to lower deployment costs and pave the way for future sustainable aviation fuel projects.
• Positive Sentiment: Verity, Gevo’s software subsidiary, has secured partnerships—including a supply-chain tracing deal with Landis—to provide carbon intensity reporting and is already generating revenue as it scales.

Presentation

[Operator]

Good day and thank you for standing by. Welcome to the Gevo Incorporated Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press 11 on your telephone.

[Operator]

You will then hear an automated message advising your hand is raised. To withdraw your question, please press 11 again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker for today, Eric Fry, Vice President of Finance and Strategy. Eric, you may begin.

[Eric Frey, Vice President of Finance & Investor Relations at Gevo]

Good afternoon, everyone, and thank you for joining us on today's call to discuss Gevo's second quarter twenty twenty five results. I'm Eric Fry, Vice President of Finance and Strategy at Gevo. With me today, we have Patrick Gruber, our Chief Executive Officer Leike Aguirre, our Chief Financial Officer Chris Ryan, our President and Chief Operating Officer and Paul Blum, our Chief Business Officer. Earlier today, we issued a press release that outlines our second quarter twenty twenty five results and some of the topics we plan to discuss. A copy of the press release is available on our website at www.gevo.com.

[Eric Frey, Vice President of Finance & Investor Relations at Gevo]

Please be advised that our remarks today, including answers to your questions, contain forward looking statements within the meaning of the Private Securities Litigation Reform Act. These forward looking statements are subject to risks and uncertainties that could cause actual results to be materially different from those currently anticipated. Those statements include projections about the timing, development, engineering, financing and construction of our alcohol to jet projects, our future carbon credit sales, our Gevo, North Dakota and RNG plants and other activities described in our filings with the Securities and Exchange Commission, which are incorporated by reference. We disclaim any obligation to update these forward looking statements. In addition, we may provide certain non GAAP financial information on this call.

[Eric Frey, Vice President of Finance & Investor Relations at Gevo]

The relevant definitions and GAAP reconciliations may be found in our earnings release, which can be found on our website at www.gevo.com in the Investor Relations section. Following the prepared remarks, we'll open the call for questions. I'd like to remind everyone that this conference call is open to the media, and we're providing a simultaneous webcast to the public. A replay of this call and other past events will be available via the company's Investor Relations page at www.gevo.com. I'd now like to turn the call over to the CEO of Gevo, Patrick Gruber. Pat?

[Patrick Gruber, CEO & Director at Gevo]

Thanks, Eric. We had a really nice quarter. It's great to have turned the corner on adjusted EBITDA. Our financial results this quarter and for the first six months of the year are consistent with our expectations for the year. But you know what?

[Patrick Gruber, CEO & Director at Gevo]

We achieved them faster than we anticipated. It surprised us. We're making good progress. The key achievements, in addition to being adjusted EBITDA positive and incrementally net profitable, include successfully selling voluntary carbon credits generated at our North Dakota site with carbon capture and sequestration. Also the selling of tax credits, the excellent ethanol and RNG operations, all of this while never losing sight on our long term objectives of successfully financing and deploying renewable resource based jet fuel plants.

[Patrick Gruber, CEO & Director at Gevo]

Our existing operations have provided us with a step up in adjusted EBITDA, while at the same time providing the ingredients to deploy those jet fuel plants. Putting things into context, one, it's clear to all that it takes time to finance and build synthetic aviation fuel, the jet fuel, the SAP plants. Let me make a few observations on this point. Making jet fuel in The US for abundant cost effective raw materials that are grown domestically makes a lot of sense. There's a finite amount of jet fuel on a barrel of oil, jet fuel demand is increasing.

[Patrick Gruber, CEO & Director at Gevo]

In The US alone, jet fuel demand is expected to increase an additional 2,300,000,000 gallons per year over the next ten years according to projections from the US EIA. That's the Energy Information Agency. However, The US is not building new refineries. In fact, we are shutting down and converting them for other products. So where will the future jet fuel come from?

[Patrick Gruber, CEO & Director at Gevo]

Imports? Well, that doesn't make a lot of sense to serve our domestic energy needs. We view the renewable jet from cornstarch carbohydrates, in other words, the sugars can be achieved at a cost of production similar to petroleum based jet fuel once fully scaled up and operating. And it can deliver the added market driven attribute of low or even negative net carbon footprint. With our business system, it is possible to achieve both a low carbon footprint and a low cost.

[Patrick Gruber, CEO & Director at Gevo]

This opportunity is absolutely huge in our view, we continue to pursue it. Two, we are very focused on our alcohol to jet 30,000,000 gallon plant design, targeting its first deployment to our North Dakota site. Our North Dakota site is particularly attractive because of the great ethanol and protein operation there, as well as the carbon capture assets. We're in the midst of translating our ATJ 60, that's the 60,000,000 gallon plant design to the ATJ 30 design. With the knowledge we have gained by engineering the heck out of these plants, we believe that we can make great reductions in project deployment costs, both technical and financial.

[Patrick Gruber, CEO & Director at Gevo]

A 30,000,000 gallon ATJ plant would need about 50,000,000 gallons of ethanol as a feedstock. This is a practical size where the economies of scale work. Smaller plants in this would be expected to be severely disadvantaged in cost price. Our ATJ 60 project targeted for Lake Preston is plugging along albeit slowly. We've been working with the DOE and our customers, and we are waiting to see what happens with the carbon dioxide pipeline.

[Patrick Gruber, CEO & Director at Gevo]

It'll take its natural course. We are done with the engineering on it and have shifted resources to the ATJ 30 plant. The overall strategy for Gevo is to use our current base of assets to improve profitability, increase carbon credit sales and tax credit sales while deploying ATJ plants. We see improved operations and associated profitability as giving us solid footing to launch ATJ projects and achieve our long run goal. ATJ continues to be the major path for growth and selling carbon abatement as a co product is key.

[Patrick Gruber, CEO & Director at Gevo]

I'll turn it over to Leke Agriiri, our Chief Financial Officer, who will take us through the latest financial results. Leke?

[Leke Agiri, CFO at Gevo]

Thank you, Pat. We did indeed have an excellent second quarter. Now here are the numbers. We ended the quarter with 127,000,000 in cash, cash equivalents and restricted cash. During the second quarter, combined operating revenue, interest and investment income was 44,700,000.0 Our income from operations was 5,800,000.0 and our non GAAP adjusted EBITDA was 17,300,000.0.

[Leke Agiri, CFO at Gevo]

Gevo North Dakota generated income from operations of 17,100,000.0 and non GAAP adjusted EBITDA of $24,200,000 Gevo RNG generated income from operations of $1,500,000 and non GAAP adjusted EBITDA of 2,600,000.0 And finally, net income per share attributed to Gevo was $01 per share for the second quarter. Here is some more color. Our second quarter results include a one time catch up recognition of a clean fuel production credits over the last two quarters, since amongst other things, we closed the sale of $22,000,000 of our CFPC credits in the second quarter. Going forward, our results will reflect the CFPC credits that we generated in the period being reported. Our first quarter results did not include one month of GIVO North Dakota operations, since we bought the facility at the January.

[Leke Agiri, CFO at Gevo]

It did not include any carbon dioxide removal credit sales, and it did not recognize generation of and proceeds from the sale of the clean fuel production tax credit. So as a result, we think our combined first and second quarter results more closely represent where we are. For the six months ending 06/30/2025, our net income grew by $20,000,000 and our non GAAP adjusted EBITDA grew by $32,000,000 compared to the same period last year. We see this as recurring step change growth, which we expect will continue to grow from there. We are thrilled with our second quarter performance, both operationally and financially.

[Leke Agiri, CFO at Gevo]

We believe our businesses are well positioned for sustained success and strategic for the execution of our growth plans. Now I will hand it over to Paul.

[Paul Bloom, Chief Business Officer at Gevo]

Thanks, Leike. During the second quarter, we started our carbon business and sold over $1,000,000 worth of carbon dioxide removal credits or CDRs. In addition, we were recently featured in Nasdaq's 2024 sustainability report for our supply of high integrity carbon removal credits from GIBO North Dakota. We believe this new co product business could add a significant stream of new stable revenue for us as we are able to immediately supply a growing global marketplace with high integrity credits. We anticipate growing CDR credit sales to 3 to $5,000,000 by the end of this year and estimate long term sales of this new co product could exceed $30,000,000 per year from our current production volumes, which could be significantly expanded in the future.

[Paul Bloom, Chief Business Officer at Gevo]

We think the optionality to sell carbon separately from the fuel provides us with a unique advantage. As our business expands, we like having the ability to balance returns by separating and shifting carbon attributes from volatile low carbon fuel markets to selling CDRs in potentially more stable higher value markets. For some additional background, bio based carbon dioxide is a co product of ethanol fermentation that can be efficiently captured for the use in industrial applications, carbonated beverages, petroleum processing, or permanently stored in the appropriately geological formations to generate carbon dioxide removal credits. The high integrity CDR credits we are currently selling are known as corpse or CO2 removal credits. These credits are certified by Pure Earth and can be purchased by customers and retired immediately to offset the effect of emissions.

[Paul Bloom, Chief Business Officer at Gevo]

The GIVO North Dakota facility has the appropriate geological formation and operational class six well for carbon capture and sequestration, with a total estimated sequestration capacity of up to 1,000,000 metric tons of CO2 per year. Our facility was also the first PURE OERT certified CO two storage facility in The United States. Our credits are certified by PURE OERT under its strict standards for a thousand plus years of permanence and other key quality parameters required by customers. Our research tells us that in total, the marketplace for carbon dioxide removal credits have exceeded $10,000,000,000 in the past few years, reflecting nearly 40,000,000 tons of CO2 removals. We look forward to increasing our participation in this market as it continues to expand.

[Paul Bloom, Chief Business Officer at Gevo]

We also began our business of selling clean fuel production tax credits. Clean fuel production credits or CFPCs are also known as the 45Z tax credit. We expect to generate cash from the production sale and transfer of these credits to third party taxpayers. On June 30, we entered into our first tax credit transfer agreement for $22,000,000 worth of credits to a third party. We are one of the first companies to monetize these credits, and we anticipate finalizing additional tax credit transfer agreements with third party taxpayers this year to sell out our anticipated volume of credits for the balance of 2025.

[Paul Bloom, Chief Business Officer at Gevo]

Based on our production of low carbon ethanol and RNG, we expect our clean fuel production credits to benefit our net income and adjusted EBITDA by more than $10,000,000 per quarter going forward. For clarity, these sales do not show up on the revenue line, but due to the applicable accounting standards, show up as a reduction to our cost of goods sold line on the income statement. I'll conclude with some brief remarks on our technology platforms, which are driving innovation for expected growth. First, Verity is our wholly owned subsidiary that is developing a software platform for traceability, compliance reporting, and the monetization of carbon intensity across the agriculture and renewable fuels business system. Verity is earning revenue now and is in growth mode.

[Paul Bloom, Chief Business Officer at Gevo]

In July, Landis, a $2,400,000,000 agricultural solutions company spanning 34 states that connects thousands of farmers, announced the partnership with Verity to track and trace their twenty twenty five soybean crop for premium market opportunities and the first of its kind carbon intensity supply chain program for ethanol production. These supply chains are complex involving extensive data and have significant compliance requirements. Verity aims to help farmers and partners like Landis easily obtain high quality verifiable results, and our innovative solutions are starting to pay dividends for Gevo and our customers. Next, we continue to make good progress on developing Gevo's proprietary ethanol to olefins technology with our development partners LG Chem and Axis. Gevo's ETO technology targets the lowest capital and operating cost to convert ethanol into olefins that can be used for renewable fuels and chemicals, including SAF and biopropylene.

[Paul Bloom, Chief Business Officer at Gevo]

As of today, Gevo has approximately 80 active global patent assets in our ETO intellectual property portfolio. Finally, our long term growth is supported by a strong intellectual property portfolio, including our SAP platform, ETO technology, isobutanol portfolio, and carbon tracking solutions. We hold over 400 patent assets globally, many granted recently as we've refined our ATJ30 and ATJ60 designs, and we continue to secure new patents as our innovations progress. Let's now go to Chris to talk about operations. Chris?

[Christopher Ryan, President & COO at Gevo]

Thanks, Paul. Let me review some key operating results for the second quarter. Our team at Gevo North Dakota continues to keep the plant running well, and the production numbers through second quarter support that point. In the second quarter, we ground 5,700,000 bushels of corn to produce 17,000,000 gallons of low carbon fuel grade ethanol, and that's around three gallons per bushel yield, which is good. That also equates to about a 67,000,000 gallon per year run rate on ethanol.

[Christopher Ryan, President & COO at Gevo]

We produced 52,000 tons of high protein animal feed and over 5,000,000 pounds of distillers corn oil, which is about one pound of oil per bushel of corn ground. In our carbon capture and storage business, we sequestered over 40,000 metric tons of CO2 in the second quarter. That CO2 being sequestered is a small fraction of the capacity of the reservoir that we sit on top of in North Dakota. We have a lot of extra capacity to sequester CO2, and we're actively talking to third parties to do that. All these numbers equate to approximately equal amounts by weight of ethanol, high protein feed, and c o two with some corn oil on top.

[Christopher Ryan, President & COO at Gevo]

This is a good diversification for a business. At our RNG business in Northwest Iowa, where we have partnered with three dairy farms, we produced about 92,000 BTUs of renewable natural gas during the second quarter, and we continue to optimize that process to push production higher. This year has been a great year for growing corn. This year's harvest in The United States is projected to be another record year, and that's great for us. But the farmers really need to see some new uses for corn.

[Christopher Ryan, President & COO at Gevo]

That brings me to our Synthetic Aviation Fuel or SAF platform. We've been building our SAF platform because we see a substantial and expanding market ahead, one where we believe Gevo is strongly positioned to lead. According to the US Energy Information Administration data, US jet fuel demand is projected to rise by more than 2,000,000,000 gallons per year over the next decade. We have a great opportunity to help meet that demand with domestic production using agriculture and rural communities as the backbone to do that. At Gevo, we've developed a template for doing that using ethanol as the feedstock to produce SAF or jet fuel in a modular plant.

[Christopher Ryan, President & COO at Gevo]

It would only take a few dozen of our ATJ facilities to process roughly 3,500,000,000 gallons of ethanol into more than 2,000,000,000 gallons of competitively priced domestically produced jet fuel, channeling billions of dollars in investment into rural agricultural communities and creating a new use for corn, which the agricultural industry really needs. It's worth noting that traditional fossil based jet fuel makes up only about 9% of the output from traditional US refineries, whereas the ATJ process that we've designed can produce more than 90% jet fuel from its production stream. To capture this opportunity, we've created three standardized plant designs. We call them ATJ 30, ATJ 60, and ATJ one fifty, all convert low carbon ethanol into SAF. Gevo North Dakota stands out as a promising ATJ 30 location, thanks to our existing carbon capture and storage infrastructure and reservoir, access to low cost, low carbon ethanol, and the large acreage we have at our site.

[Christopher Ryan, President & COO at Gevo]

We have leveraged our ATJ design from South Dakota, and our engineers are busy editing it for the ATJ 30 design to be deployed at our site in North Dakota. For ATJ 60, this project in South Dakota, we remain in active discussions with the US Department of Energy's loan programs office to advance the $1,630,000,000 loan guarantee for our South Dakota project. And we're pacing our development spend to align with the financing timeline. In the future, once our ETJ process is operational, we intend to expand the business by leveraging our SaaS platform and proprietary systems through multiple business models, including joint ventures, licensing and build own operate. With about a 180 existing brownfield ethanol plants in The United States, plus additional greenfield sites domestically and worldwide, we see significant potential for scaling. With that, I'll hand it over to Pat.

[Patrick Gruber, CEO & Director at Gevo]

Thanks, Chris. Thanks, Paul and Leke. You guys did a good job of hitting the highlights. Let's go ahead and open it up for questions. Operator?

[Operator]

Our first question comes from Doshiya Anghelani with Jefferies. Your line is open.

[Whitney Mutalemwa, Equity Research Senior Associate at Jefferies]

Hi, team. This is Whitney Mutalama on for Dushant. Impressive results this quarter, especially on the early monetization of CDR and CFPC credits. So on the CFPC monetization, like, while ethanol related CFPCs have been monetized, biogas credits haven't yet. So what's holding back that monetization piece, And when do you expect to see such activity?

[Patrick Gruber, CEO & Director at Gevo]

We already did include it in here. Nikki, why don't you give a little more explanation? And CFPCs for ethanol is we haven't seen other ones from ethanol before. Go ahead, Leike.

[Leke Agiri, CFO at Gevo]

Yep. So the 45Z or the clean fuel production tax credit for ethanol production was what we've monetized in the sale, the $22,000,000 sale to a private party that was announced. The transaction was consummated with also making use of the relevant, call it insurance policy to make sure residual risks are actually being managed on behalf of Gboe and also on the buyer party. What we do expect, especially now that the big beautiful bill has passed and effectively hopefully rendered the discussions around retroactive change in tax law issues. We believe that issue is actually officially sort of addressed with the passing of the bill.

[Leke Agiri, CFO at Gevo]

Expectation is ethanol facilities that actually qualify for 45Z or CFPC, the market should hit up and you're going to start seeing some of that sale. But we are one of the first parties to actually get a chance to actually execute the transaction. And as we articulated, we are also in the process of monetizing the rest of our clean fuel production tax credit for this year. What we should also highlight is we have a pathway as part of the execution of actually selling our current tax credit for 2025. We have a pathway that was identified to also be able to place our credits for 2026.

[Whitney Mutalemwa, Equity Research Senior Associate at Jefferies]

Okay. Thank you. And then can we expect a similar cadence for the RNG business?

[Leke Agiri, CFO at Gevo]

That is exactly right. In fact, the deal construct, the transaction structure for our ethanol facility is very similar for RNG facility. So the rest of the tax credits that we are going to monetize for the rest of the year is for our ethanol and our RNG facility and same payments for 2026 going forward.

[Whitney Mutalemwa, Equity Research Senior Associate at Jefferies]

Sounds good. Thank you.

[Operator]

Thank you. Our next question comes from Amit Dayal with H. C. Wainwright. Your line is open.

[Amit Dayal, MD - Equity Research at H.C. Wainwright & Co.]

Thank you. Good afternoon, everyone. Congrats on a really positive quarter. I think a lot of people are surprised, you know, how the financials are showing up now. With respect to the CFPC, the 45Z credits, the 10,000,000 benefit per quarter, is that sort of a base case?

[Amit Dayal, MD - Equity Research at H.C. Wainwright & Co.]

What kind of variance should we expect on that, at least for the next few quarters as far as you have visibility?

[Patrick Gruber, CEO & Director at Gevo]

Lekki, why don't you go ahead and answer that?

[Leke Agiri, CFO at Gevo]

Sure. Short answer to your question is that over 10,000,000 or that 10,000,000 number is actually stressed. As you guys are probably familiar, the monetization of any production tax credit is tied to the actual production of the facility. We believe if no going concerns and which we don't have any going concerns, we could actually do better than $10,000,000 of tax credit generation per quarter. So it's not think it's a slightly conservative view what we've disclosed.

[Leke Agiri, CFO at Gevo]

We actually think we do better than $10,000,000 of credit generation every quarter. And that number is a combination of 45z generation from our ethanol facility and our RNG facility.

[Patrick Gruber, CEO & Director at Gevo]

Then the last thing for all you guys, all you analysts, do me a favor and make sure that you heard the point about this goes to a credit against cost of goods sold, not the revenue line. Don't be doing your modeling by showing these credits as revenue item. They're not. That's not how the accounting treatment works. It's a credit towards the cost of goods sold.

[Amit Dayal, MD - Equity Research at H.C. Wainwright & Co.]

Understood. Yeah. I I got that. And then, you know, the path to 30,000,000 in CDR sales, Pat, can you share is that gonna be driven by, you know, just better capacity utilization for the sequestration business? Or are there other avenues that get you from, you know, the 3 to 5,000,000 this year and then towards the $30,000,000 in the future?

[Patrick Gruber, CEO & Director at Gevo]

Yeah, I'm going let Paul answer this. Go ahead, Paul. Go ahead, answer.

[Paul Bloom, Chief Business Officer at Gevo]

Sure. When we think about this going forward, we're just getting started, obviously, in the CDR market. And the bulk of our carbon capture and sequestration, the CCS value is going into low carbon fuel markets today. So we'll be shifting that as we see the market develop into the CDR sales. And then long term, right, as we get there, meaning the next two years or so, we're going to be trying to grow that as much as we can.

[Paul Bloom, Chief Business Officer at Gevo]

But it's really about on a journey to put our carbon value as much carbon value in our staff, really. And so the whole thing is predicated by the high quality in this market. And that's where we think, if you look at the overall market, we talked a little bit about how it's growing. It's grown to 40,000,000 metric tons, over 10,000,000,000 in sales. If you just do the quick math on that, that puts you at about two fifty a metric ton for average carbon removal credits.

[Paul Bloom, Chief Business Officer at Gevo]

But we know that there's a wide range of where that value is. So the way that you, we believe that you go after this value is to have the highest quality credits, the highest quality information. That's really where PURO standards come in. And we're using the leading crediting platform for engineered carbon removals and putting those into the market, obviously. So that's kind of our path as we go forward here, shifting from more volatile, you know, low carbon fuel markets into something that we think can provide, you know, more more returns and less volatility in CDRs.

[Patrick Gruber, CEO & Director at Gevo]

So the way to think of it is that we have we produce what, 165,000 tons, 167,000 tons or something like that of carbon dioxide. The projections and discussion of revenue from CDRs is related to that. We have a million tons of capacity. That's not contemplated in the numbers that Paul threw out.

[Amit Dayal, MD - Equity Research at H.C. Wainwright & Co.]

Right. Right. Understood. No. That was helpful.

[Amit Dayal, MD - Equity Research at H.C. Wainwright & Co.]

Thank you. And then, you know, now that there's clarity on the 45Z credits, etcetera, and, you know, the regulatory environment is very favorable, can we expect some maybe faster movement on the ATJ30 or ATJ60 projects? Any color on that, Patrick, would help, I guess, investors just get a sense of, you know, how that part of the business may shape up, you know, in the next twelve to eighteen months?

[Patrick Gruber, CEO & Director at Gevo]

I'll add it. I'll say a comment first, I'll hand over to Chris. But it comes down to that this had been this last, I don't know, the last eight months or so have been really kind of uncertain. Everyone was everybody's kind of, woah, what's gonna happen? It's all bad.

[Patrick Gruber, CEO & Director at Gevo]

Everything, you know, is bad. Well, you know what, it hasn't been for us. Obviously, we did pretty darn well. And I think that's, good for the administration. They're supportive of the kind of thing that we're doing.

[Patrick Gruber, CEO & Director at Gevo]

But we're we're doing a TJ, that's focused on being cost competitive with Petro. Understand that point. There is nobody else like that, that I'm aware of. Nobody. And yet, we can still eliminate the carbon footprint.

[Patrick Gruber, CEO & Director at Gevo]

The thing is, we've got to finish the engineering for the ATJ 30 and then get it financed. That's the that'll be the rate limiting steps. The ATJ 60 project, as we mentioned, we got to work it through with the DOE. It's a big capital number. We still got to know what happens with the Summit Pipeline.

[Patrick Gruber, CEO & Director at Gevo]

We've talked about that in the past. We're not going to build it before we have clarity. We're not even going to try to finance it before until we have clarity around that, what happens on the pipeline, because why would we ever build a plant that's economically disadvantaged? That'd be stupid. So we're not going to do that.

[Patrick Gruber, CEO & Director at Gevo]

Chris, you want to add anything? Talk about the Yeah.

[Christopher Ryan, President & COO at Gevo]

So yeah, thanks, Pat. You know, the good thing is, is we started with the ATJ 60 design that we made for Lake Preston. And we took that and basically copy, edit, paste it into the North Dakota site. So right now, our engineers are working on editing it. So the good news is that goes a lot faster than if we didn't have that ATJ-sixty design.

[Christopher Ryan, President & COO at Gevo]

So the good thing is it is going faster. The reality is it takes time to do that editing and then actually build a plant of this size. It takes a few years. Yeah. We're looking for every opportunity we can to to speed things up and cut costs.

[Amit Dayal, MD - Equity Research at H.C. Wainwright & Co.]

Okay. Thank you, guys. That's all I have for now. I'll take my other questions offline.

[Operator]

Thank you. Our next question comes from Peter with Water Tower Research. Your line is open.

[Peter Gastreich, MD - Energy & Sustainability Analyst at Water Tower Research LLC]

Thank you. Peter Gasterich here from Water Tower. So congratulations on your results executing your strategy ahead of expectations. It's really great to see the impact of North Dakota and a very nice EBITDA figure coming through. A couple of The questions from first one is a question about North Dakota expansion options and next steps.

[Peter Gastreich, MD - Energy & Sustainability Analyst at Water Tower Research LLC]

I understand your project economics for ATJ, you know, were not designed to be dependent on 45Z, but I'd just like to get, you know, kind of ask whether the outcome of 45Z and the big beautiful bill, you know, whether that affects how you think about capital allocation in North Dakota and your options there, for example, expanding low carbon ethanol capacity versus pursuing ATJ 30 or other projects up there? Thank you.

[Patrick Gruber, CEO & Director at Gevo]

Well, the obvious thing is that that tax credit expires in 2029 or the 2029. And so for ATJ plant to become operational in that timeframe, it only have a very limited time to capture value from it. There may be opportunities from the big beautiful bill for the accelerated depreciation credits and things like that that we have we're still working through. So it could be that there's other benefits. But from the specific thing you're asking about with the 45Z section for ATJ, it's not it doesn't it is that's not going to matter.

[Patrick Gruber, CEO & Director at Gevo]

And that's always been our position. I think that on with ethanol, it definitely influences how we think about things. Mean, we're going to want to take advantage of that and then as much and optimize this much as we possibly can. So we've got a whole range of projects like that. Chris, you want to comment further?

[Christopher Ryan, President & COO at Gevo]

Yeah. I mean, that site in North Dakota is a great site for doing a lot of projects and potential expansion, because, you know, you got the CCS there and we have 500 acres of land. And we've got plenty of eager farmers ready to supply more corn. So you put all that together and there are opportunities that we're looking at that, but they're shorter term opportunities that could take advantage of the 45C. So it's too early to really talk about those, but we're looking at all potential opportunities.

[Patrick Gruber, CEO & Director at Gevo]

We got that, like I mentioned, the million tons of capacity down there per year. We got to use it and take advantage of it and figure it out. So we'll be all over this. And I think that as far as the jet fuel goes, would on the big beautiful bill, I surely would have liked to have seen jet fuel extended beyond 2029. That have been more helpful.

[Patrick Gruber, CEO & Director at Gevo]

I'm not I actually I'm glad that it got two years rather than none. You know, that's helpful for us as a business for sure. And, you know, we're a company who's reinvesting that money in expansion of biofuel opportunities here in The US doing advanced biofuel opportunities, moving into hydrocarbons, setting up infrastructure for, CO2. Remember, CO2 is going to be needed in North Dakota for enhanced oil recovery within a few years. That's so we need infrastructure for co2.

[Patrick Gruber, CEO & Director at Gevo]

So great. We're a part of that game. And it's going to be pretty darn interesting going forward. It's a great site. We got we did a good job. Our team did a good job and the people of our Geo North Dakota team have done a great job. It's been fun to watch, gotta say. Okay. Thank you very much.

[Peter Gastreich, MD - Energy & Sustainability Analyst at Water Tower Research LLC]

Sorry, just the next just next question. One more question, please, about Verity. So including the new soybean tracking partnership that you just mentioned from last month, how many customers do you now have for Verity? And also just if you're able to share any broad color on your recent discussions with prospects there, What are your prospects of seeing some more announcements this year on Verity customers? Thank you.

[Patrick Gruber, CEO & Director at Gevo]

Paul, why don't you take that question?

[Paul Bloom, Chief Business Officer at Gevo]

Sure. Look, we're really excited about Verity growth here and it's great to have the tool working out with a customer like Landis. Right now we've got a handful of ethanol plants, five ethanol customers today that we've got agreements with on Verity. We think this is going to grow sizably because what Verity is really doing is simplifying that carbon accounting system that you need for tax credits, for voluntary carbon credits. So we think it's got a nice growth portfolio or perspective going forward.

[Paul Bloom, Chief Business Officer at Gevo]

But what we're going be doing next is really making sure that we can demonstrate everything that Verity does at our GIVO North Dakota site. So this will be really helpful for us. As you can see, we've got a lot of complexity in the business moving between voluntary credits, compliance credits, tax credits, and so nothing better than to use Verity to demonstrate how we can simplify our lives, which is what Verity really does for the customer. Really excited about the growth potential making it all real in North Dakota for us.

[Patrick Gruber, CEO & Director at Gevo]

I want to add something on these. This tax credit game of getting the stuff verified. Like I said, we weren't aware of anyone doing a 45Z like we've done, and it's wrapped with an insurance product. You know, the amount of work that that took was quite impressive. And it's a skill.

[Patrick Gruber, CEO & Director at Gevo]

Now we have it, we're going to use it. And then there's the question of on the CDRs. CDRs for I'm going reiterate this. CDRs are think of them as voluntary credits, the actual carbon removal credits that people will buy. This is a market that's already been growing.

[Patrick Gruber, CEO & Director at Gevo]

These are legit. We have like the gold standard type credits, co2 going down a hole measured by a meter, We can measure tons going down a hole. That's a big deal. That's why we can get the Puros certification for quarks, that we're the only ones in the country first ever to get that kind of certification. That sort of thing should matter.

[Patrick Gruber, CEO & Director at Gevo]

It's legit removal of carbon, and people are willing to pay for it on a voluntary basis. That's the kind of co product we want to see in the future and grow it. And Paul's team is all over this. It's a big deal.

[Peter Gastreich, MD - Energy & Sustainability Analyst at Water Tower Research LLC]

Okay, great. Well, thanks very much for taking my questions. And again, congratulations.

[Patrick Gruber, CEO & Director at Gevo]

Thank you.

[Operator]

Thank you. Our next question comes from Dirk Whitfield with Texas Capital. Your line is open.

[Derrick Whitfield, Managing Director at Texas Capital]

Good afternoon, guys, and congrats as well on a strong quarter and update.

[Patrick Gruber, CEO & Director at Gevo]

Thank you.

[Derrick Whitfield, Managing Director at Texas Capital]

With respect to the CDR market, thanks for the detail included in the release. I wanted to see if you could maybe help characterize the depth and durability of the market. And separately, could you speak to the contract structure and if these were sold to a single counterparty or multiple?

[Patrick Gruber, CEO & Director at Gevo]

The answer, yeah, so go ahead, Paul. Go ahead and address it where you can. Because I know you'll be restricted a little bit on the details of the contracts, but the rest of it, go for it.

[Paul Bloom, Chief Business Officer at Gevo]

Yeah, look, I mean, this is a new and developing market. So we're learning this and getting into it. And we're pretty excited that we've already made a lot of progress here. And so as you think about these markets, we're finding out that there are some that are traditional kind of more spot sales. And then there are multi year type agreements.

[Paul Bloom, Chief Business Officer at Gevo]

And this is where we're headed with a lot of the new business that we're planning to put on where customers once they find out what high quality that you've got and the high integrity credits that you're providing, there's a lot of work that goes into that and a lot of diligence. So finding a high quality credit supplier to make sure that they've bought down the risk and they can really show what they're doing for their products, it's a big deal and we can do that. And so this is where we're headed with more longer term contracts. But I would say the spot market for the CDRs are getting interesting. If you go back and remember the numbers that I said, with 40,000,000 metric tons of credits that have been sold so far in the CDR market, only about a little over 2% of that has actually been delivered.

[Paul Bloom, Chief Business Officer at Gevo]

So the thing that we're watching closely is that as other projects may have been sold out, they may be projects that aren't really working today. They haven't started to deliver. Now, a lot of these projects probably will start to deliver, but we're already delivering. So we think that there's going to be an interesting spot market developing, and we're here to be able to supply those credits as needed.

[Derrick Whitfield, Managing Director at Texas Capital]

Great, thanks for the detail For on my follow-up, I wanted to focus on GIVO North Dakota. With the optionality your team has with ethanol sales, wanted to ask if you could speak to how you're thinking about marketing and optimizing revenue from the low carbon ethanol between the voluntary market in California, Oregon and Canada.

[Patrick Gruber, CEO & Director at Gevo]

That's a great question. What I think you should do guys is have a tag team between Chris and Paul.

[Christopher Ryan, President & COO at Gevo]

Yeah, actually, Pat, I think, Paul, this is a great question stemming from the last one. So go ahead, Paul.

[Paul Bloom, Chief Business Officer at Gevo]

Yeah. No, thanks, Chris. So, you know, as we sell a lot of our CCS value today is in low carbon fuel markets, you you have to have a pathway. So we are in the progress progress of making, you know, putting in pathways. We've already got pathways that include CCS and and don't include CCS.

[Paul Bloom, Chief Business Officer at Gevo]

We have optionality. Do we put that into that low carbon fuel market, or do we separate that CCS value and put in CDR market? That's really the optionality that we're talking about. So as we look at these markets, we have some timing that we we have to balance. But as we see carbon prices, carbon credit prices increase in certain low carbon fuel markets, We want to be able to take advantage of those.

[Paul Bloom, Chief Business Officer at Gevo]

And so we work with our marketing partner to do that, to go after those so we can deliver, the returns both on the fuel, but then also start to put a book on for those, that CDR value that's separated. And as we look at that price, we're looking at what's going to give us the best return between the netback of including that CCS value in the fuel or stripping that off and selling it into the CDR market. So it's a little bit of balancing act, but today it's more heavily focused on the LCF markets, low carbon fuel markets. And as we build those sales of CDRs, we plan to put on a healthy mix or maybe even put on more CDRs if we can get lower volatility with higher returns in that market. It's just a lot of optionality. We'll see how it develops.

[Derrick Whitfield, Managing Director at Texas Capital]

Great. Maybe one last, if I could. With respect to your CCS site, could you speak to the market opportunity you guys see to accommodate third party volumes and the amount of capacity you feel comfortable offering up to the market?

[Patrick Gruber, CEO & Director at Gevo]

Yeah, we can comment on it. Who wants to take that one? Chris or Paul?

[Christopher Ryan, President & COO at Gevo]

Paul, you can go ahead. Let me just add that when we talk about the capacity, about a million tons per year up there, we're talking about one well. And there's no limit. We're not limited to one well, let's put it that way. But Paul, go ahead.

[Paul Bloom, Chief Business Officer at Gevo]

Yeah. Sure. So that you know, this is an interesting one because we're we're also thinking about, hey. What do we do in the future? How do we see us expanding?

[Paul Bloom, Chief Business Officer at Gevo]

The more ethanol we produce, the more CO2 we would produce. So you as you're fermenting ethanol, you make a pound of ethanol, you make a pound of CO2. That's kind of the it's a one to one kind of ratio there. And so we want to make sure we've got plenty for us. And then as we look at projects, can we bring in CO2 from third parties?

[Paul Bloom, Chief Business Officer at Gevo]

Sure. I mean, we've talked about things like a virtual pipeline using CO2 by rail. And we've talked about are there other opportunities to put partner sites on our right where we sit and sequester CO2. As we see the need for more clean power, where things like data centers and other growth opportunities, we think we've got a great site. And so it's really a question of which of those projects are going to give us the best returns, while making sure that we've got plenty of available capacity for our for our own needs.

[Patrick Gruber, CEO & Director at Gevo]

Yeah, and so one of the things I like about Giva North Dakota is we have a huge amount of land that we own and 500 plus acres. It's a great operation. There's great corn resource up in that area. The good workforce, good farmer community. These people are good.

[Patrick Gruber, CEO & Director at Gevo]

They're real. It's a business environment in North Dakota, the energy people and agricultural people are the same people, and they all get it and they get that this is all entwined. And they it's important. They're an energy producing state and they're food producing state and it's for export out of North Dakota. It's a great place to be.

[Patrick Gruber, CEO & Director at Gevo]

It's really attractive site. I wish we had had it sooner. And when I'm I'm really glad that we have it now. And for us, this marketplace that Paul's team is establishing of the CDRs, Quarks and the rest, that's really, really important because that's selling co products is a key part of the economic equation. And it's really, it's going to matter in the long run, as we don't want to because in the if we look a way out to the future, you do not want to be dependent upon government for anything on credits, because, you know, it can be you can go with the whims.

[Patrick Gruber, CEO & Director at Gevo]

You don't want that you want them to establish the legit marketplace. Well, we've got legitimate stuff. Verity comes into play here and is a big deal for helping to certify the whole value chain and the sourcing of the raw materials and all the rest. So we have a leg up on other folk, we believe. And the site that we have is an unusual site.

[Patrick Gruber, CEO & Director at Gevo]

We're the only ones there. It's ours, in our hole. And, you know, that makes the diligence way, way easier. And for as tense as it was, boy, I'm glad it wasn't any more complicated than that. So we think that we have, an advantage here a window, and a premium product of carbon abatement to offer.

[Patrick Gruber, CEO & Director at Gevo]

And it's going to be very interesting to see how my team goes and exploits that. It's a different way of thinking about things, you know, and it's going to be fun. And I think as far as the ATJ 30 goes, and this is a question that you know, Ahmed had asked, but related about where hurry up and go get done. Yeah, we're going go as fast as we can. We got to get our act together, too.

[Patrick Gruber, CEO & Director at Gevo]

And this is about getting the engineering done. Chris mentioned that we'll get it done for a TJ 30 to be a much lower capital cost should be a bite sized capital cost. And so how much of a bite sized capital cost can that be? I think it could be really bite sized. Is it bite sized enough for Jibo loan?

[Patrick Gruber, CEO & Director at Gevo]

That I don't know yet. And that's pretty interesting. And so it's a different game to play up there. And it doesn't take anything away from the ATJ sixty plant in Lake Preston. That one still has got to run its course and figure out the rest of the detail of what's going on between the DOE and customers and Summit.

[Patrick Gruber, CEO & Director at Gevo]

But I like where we're at. And here's something really, really, really important for people to understand. We've got a huge suite of technology. Paul mentioned this, huge. This is not simply just go buy an ATJ process off the shelf.

[Patrick Gruber, CEO & Director at Gevo]

Lots of people have unit operations. Doing it on an integrated basis, you've got to know how to operate plants. That's what my team brings. We know how to build plants. We know how operate plants.

[Patrick Gruber, CEO & Director at Gevo]

We're the first, remember, to do ATJ. First, we're the ones who got it certified and got it qualified. We still sell it in the marketplace. People forget that. We're still active in it.

[Patrick Gruber, CEO & Director at Gevo]

Small scale, you know, but demo plant scale. But this goes back to what we are all about here at Gevo. That was kind of chemistry. We have a long history with it. It is going to play out into the future with our alcohol with our ETO process.

[Patrick Gruber, CEO & Director at Gevo]

We think we can do cost savings out to the future. It's a pretty exciting time. This engineering and knowledge that we have learned from the ATJ 60 is being translated to ATV 30. And it's going to be create a winner, we believe. It also is creating a platform that we could cut and paste other places.

[Patrick Gruber, CEO & Director at Gevo]

That's a pretty exciting model. And we're looking forward to getting on with it. Sorry for that little bit of a soapbox, but hey.

[Derrick Whitfield, Managing Director at Texas Capital]

All very good, Pat. Stories really coming together. I'm happy for you guys. Great quarter and update.

[Patrick Gruber, CEO & Director at Gevo]

Thank you.

[Operator]

Thank you. I'm showing no further questions at this time. I would now like to turn it back to Pat Gruber for closing remarks.

[Patrick Gruber, CEO & Director at Gevo]

Well, I already saw my soapbox. You heard them as a main point. It is an outstanding quarter. It did happen faster than we expected. We thought this would happen.

[Patrick Gruber, CEO & Director at Gevo]

We're an unusual company in that we're a developer with a huge amount of technology, but we actually are incrementally positive profitability, albeit a little tiny bit at 1¢ per share. Hey, but that's positive. And our EBITDA should we expect it to grow further on reproducible EBITDA. So it's good. It's going to be really good.

[Patrick Gruber, CEO & Director at Gevo]

A we got a great foundation we're building, and it gives us the latitude to play the optionality that's in front of us. Thank you all for joining us. Appreciate it.

[Operator]

This concludes today's conference call. Thank you for participating. You may now disconnect.

Participants

Executives

• Eric Frey, Vice President of Finance & Investor Relations
• Patrick Gruber, CEO & Director
• Leke Agiri, CFO
• Paul Bloom, Chief Business Officer
• Christopher Ryan, President & COO

Analysts

• Whitney Mutalemwa, Equity Research Senior Associate at Jefferies
• Amit Dayal, MD - Equity Research at H.C. Wainwright & Co.
• Peter Gastreich, MD - Energy & Sustainability Analyst at Water Tower Research LLC
• Derrick Whitfield, Managing Director at Texas Capital