US Department of Energy Grants $1.46 Billion to Gevo for Sustainable Aviation Fuel Project in South Dakota
Key Ideas
- The U.S. Department of Energy awarded a $1.46 billion loan guarantee to Gevo for their Net-Zero 1 project, aiming to produce sustainable aviation fuel in South Dakota.
- The project involves transforming ethanol to jet fuel, producing hydrogen, and generating animal feed and corn oil as byproducts, with a significant reduction in carbon emissions.
- Gevo's initiative is expected to create 1,300 construction jobs and 100 permanent jobs, supporting local agriculture and having an annual economic impact of over $100 million.
- While receiving support from Gov. Kristi Noem and Gevo's leadership, the project faces opposition due to its connection to the controversial Summit Carbon Solutions pipeline project.
The U.S. Department of Energy has granted a conditional loan guarantee of $1.46 billion to Gevo, a Colorado company, for their Net-Zero 1 project in South Dakota near Lake Preston. The project aims to produce sustainable aviation fuel by converting ethanol to jet fuel, producing hydrogen, and creating animal feed and corn oil as byproducts. Gevo plans to support this by building a wind farm to power operations and a facility for Dakota Renewable Hydrogen production. The initiative aligns with the Biden-Harris administration's goal of significantly increasing sustainable aviation fuel production in the coming years.
Gevo's project is expected to double the current production of low-emission jet fuel in the U.S. annually and reduce carbon emissions by 600,000 metric tons per year. The company's plan includes engaging with local communities to create jobs and improve well-being, with a focus on supporting agricultural practices beneficial for the environment.
The loan guarantee also requires Gevo to have a 'Community Benefits Plan' for job creation and economic growth. The project anticipates creating 1,300 jobs during construction and 100 permanent jobs, with a projected annual economic impact exceeding $100 million. However, the project faces criticism and controversy due to its association with the Summit Carbon Solutions pipeline project.
Gevo's involvement with the Summit pipeline has sparked opposition, with concerns about land use, eminent domain issues, and environmental impacts. The pipeline's permit denial by the South Dakota Public Utilities Commission has led to debates among lawmakers and landowners. Despite the challenges, Gevo is optimistic about the project's success and its contribution to the local economy and agriculture.
The company's leadership views the Summit pipeline as crucial for their business strategy, benefiting from federal tax credits and incentives for low-carbon fuels. Gevo's sustainable aviation fuel project represents a significant step towards reducing carbon emissions and advancing renewable energy sources in the aviation industry.
Topics
Utilities
Job Creation
Carbon Reduction
Economic Development
Community Engagement
Sustainable Fuel
Agricultural Impact
Loan Guarantee
Pipeline Controversy
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