Gevo wins extension on Department of Energy loan commitment for aviation fuel project

[Airplane and biofuel tank trailer on the background of airport. New energy sources]
Scharfsinn86/iStock via Getty Images

Gevo (NASDAQ:GEVO [https://seekingalpha.com/symbol/GEVO]) +8.2% post-market Tuesday after disclosing it secured an extension [https://seekingalpha.com/filing/10523701] from the U.S. Department of Energy on its conditional commitment to guarantee a $1.46 billion loan for the company's sustainable aviation fuel project in Lake Preston, South Dakota.

The extension granted by the DoE's Loan Programs Office pushes the deadline to April 16, 2026, which Gevo (NASDAQ:GEVO [https://seekingalpha.com/symbol/GEVO]) said will allow the company and the DoE to evaluate certain potential modifications to the project scope in order to address energy policies and priorities.

Gevo (GEVO [https://seekingalpha.com/symbol/GEVO]) said potential scope modifications include the construction of a lower cost 30 million gal/year jet fuel production facility to develop jet fuel production at its existing ethanol and carbon capture utilization and storage facility in North Dakota and the optimal use of captured carbon dioxide for enhanced oil recovery.

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