Gevo withdraws US energy department loan application, seeks alternative funding for SAF plant
15/04/2026 23:51
April 15 (Reuters) - Gevo GEVO.O said on Wednesday it had withdrawn its loan guarantee application with the U.S. Department of Energy and is pursuing alternative funding to finance its sustainable aviation fuel (SAF) plant by the end of 2026. The company said talks with Office of Energy Dominance Financing showed the enhanced oil recovery requirement was not yet commercially viable and other financing options were a better fit. Last year in October, Gevo secured an extension from the U.S. Department of Energy on its conditional commitment to guarantee a $1.46 billion loan for its Lake Preston, South Dakota, aviation fuel project, pushing the deadline to April 16, 2026, to allow time to review potential changes to the project scope. The company said it will continue work on its alcohol-to-jet fuel, ATJ‑30, project at Gevo North Dakota, which remains on track with its strategy and timeline. The withdrawal allows Gevo to resubmit a loan guarantee financing application for the project at a later date. Last year, the U.S. DOE approved conditional loan guarantee commitments totaling nearly $3 billion for two sustainable aviation fuel projects for Calumet CLMT.O and Gevo. (Reporting by Varun Sahay in Bengaluru; Editing by Vijay Kishore) ((Varun.Sahay@thomsonreuters.com;))