Gevo Inc has withdrawn its application for a US Department of Energy (DOE) loan guarantee, opting instead to pursue alternative financing pathways for its planned sustainable aviation fuel (SAF) project in North Dakota. The decision comes as the company continues to advance development of a 30 million gallon-per-year alcohol-to-jet (ATJ) facility.
The move follows an earlier conditional commitment from the DOE’s Loan Programs Office – now rebranded as the Office of Energy Dominance Financing – for a $1.46 billion guarantee tied to a separate ethanol-to-jet project in South Dakota.
That project had been linked to a broader carbon capture and storage (CCS) network proposed by Summit Carbon Solutions, which aims to transport CO2 from multiple Midwestern biorefineries for permanent storage in North Dakota.
However, the pipeline project has faced ongoing legal and regulatory hurdles, contributing to delays and uncertainty. Against this backdrop, Gevo has shifted its focus toward its North Dakota assets, where it acquired the former Red Trail Energy facility in 2025. The site includes an operational CCS system that has been capturing and storing CO2 since 2022.
Pivoting to Alternative Financing
Following the acquisition, Gevo announced plans to expand the site’s capabilities, including the construction of a new SAF facility and increased ethanol production capacity. The company aims to scale output significantly, positioning the site as a central hub for low-carbon fuel production.
The decision to withdraw the DOE loan application came just ahead of an extended deadline. Company statements indicate that evolving project requirements, particularly around the use of captured CO2 for enhanced oil recovery (EOR), were not aligned with current market conditions in the region.
Instead, Gevo is exploring alternative funding options that better fit its strategic priorities and could accelerate project timelines. The company maintains that it may revisit DOE-backed financing in the future if conditions change.
Relevant: Gevo Plans To Up Low-carbon Ethanol Production In North Dakota
Despite the shift in financing approach, Gevo has reiterated its goal of securing full funding for the North Dakota SAF project by the end of the year.
The company views the site as a strong platform for growth, supported by existing infrastructure, operational CCS capabilities, and access to agricultural feedstocks.
As the SAF market continues to develop, the ability to integrate carbon capture with fuel production is expected to play a key role in reducing lifecycle emissions and supporting scale-up across the sector.
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