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Gevo achieves record production of renewable natural gas

Gevo, Inc. announces record renewable natural gas production in May 2024, reaching 402,000 MMBtu.

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Gevo, Inc. recently achieved a new production record in its Renewable Natural Gas (RNG) business. In May 2024, the company recorded an annual production rate of 402,000 MMBtu, surpassing the previous record of 401,000 MMBtu set in March. Staci Bogue-Buchholz, Vice President and General Manager of Gevo’s RNG facilities, said these results illustrate continuous improvement in operations.
In June 2024, severe flooding temporarily disrupted production at Rock Valley, Iowa. Despite this, Gevo managed to maintain a monthly production of 29.082 MMBtu, thanks to effective mitigation efforts. The company anticipates that this incident will not significantly affect the annual target of 400,000 MMBtu.

Flood Impact and Mitigation Measures

Flooding at Rock Valley caused temporary interruptions to RNG production. However, thanks to rapid and effective mitigation measures, Gevo was able to restore operations to normal levels. Efforts to minimize impacts enabled production targets to be maintained.
Gevo produces RNG by capturing methane biogas from manure digesters on three dairy farms in northwest Iowa. This biogas is then purified and injected into the local gas network.

Financial and regulatory outlook

Gevo currently operates under a temporary California Air Resources Board (CARB) lane, awarding RNG a carbon intensity score of -150 gCO2e/MJ. The company has requested a permanent score of -350 gCO2e/MJ, scheduled for the end of 2024. Achieving this score could potentially double the non-GAAP adjusted EBITDA of Gevo’s RNG business.
Gevo’s ability to maintain and increase its RNG production, despite environmental challenges, demonstrates its resilience and operational efficiency, offering solid growth prospects for the future.

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