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Gevo ends 1Q with $9.3M cash as it anticipates opening Minnesota production facility

The company suspended operations at Luverne in response to the coronavirus pandemic

Gevo Inc - Gevo Inc ends first quarter of 2020 with cash and cash equivalents of $9.3 million as it prepares for the eventual opening of its production facility in Minnesota
In the meantime, two wind turbines that will supply up to 5 megawatts to the Luverne facility are back in service

Gevo Inc (NASDAQ:GEVO) ended its first quarter of 2020 with cash and cash equivalents of $9.3 million as it prepares for the eventual opening of its production facility in Luverne, Minnesota. 

In late March, the company suspended operations at the Luverne facility in response to the market disruption caused by the coronavirus (COVID-19) pandemic. Gevo continues to produce renewable isooctane (gasoline) and jet fuel at its plant in Silsbee, Texas.

In the meantime, two wind turbines that will supply up to 5 megawatts (MW) of fully renewable electricity to the Luverne facility have been placed back into service. 

READ: Gevo to bring two wind turbines online in May

“This new renewable source of electricity will enable Gevo to produce its advanced renewable fuels, including hydrocarbons, with a lower-carbon intensity in the future when Gevo resumes production operations at the Luverne Facility,” the company said in a statement Tuesday.

Gevo also said it has engaged Citigroup Global Markets Inc to assist in executing a strategy to finance the production of its products using off-balance-sheet, project financing structures.

“We are focused on building our business for the long run. We continue to make and sell renewable premium gasoline and jet fuel. We’ve cut expenses, cut the burn. We are pleased to be working with Citigroup on our project financings. We are moving forward, and look forward to completing them,” said CEO Patrick Gruber.

"Building these projects off-balance sheet, where we take the role of developer, licensor, and operator, seems to make sense and is expected, once running, to provide attractive cash flows to Gevo and to project investors,“ he added.

Gevo, based in Englewood, Colorado, is commercializing the next generation of gasoline, jet fuel, and diesel fuel with the potential to achieve zero carbon emissions, addressing the market need to reduce greenhouse gas emissions with sustainable alternatives.

Contact the author: [email protected]

Follow him on Twitter @PatrickMGraham 

 

 

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Price: 2.135 USD

NASDAQ:GEVO
Market: NASDAQ
Market Cap: $253.61 m
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on 09/09/2020

2 min read