Gevo partners with US dairies for biogas project

Gevo Inc. announced today that it has contracted with three dairies to provide manure that the company will convert into pipeline quality biogas (Renewable Natural Gas). Combined, these three dairies expect to generate approximately 350,000 MMBTU biogas per year for sale to off-takers or use by the company’s affiliate, Agri-Energy LLC, at its advanced biofuel production facility located in Luverne, Minn.

The quest of the company is to reduce and eliminate the fossil footprint caused by running the Luverne facility. These biogas contracts, in conjunction with wind power, should enable any biofuel produced at the Luverne facility to have a lower carbon intensity score as well as an increased value.

Currently, the company has a letter of commitment from a lender in the amount of $20 million for financing the Renewable Natural Gas project at one of the three dairies. In addition, the company also has a verbal commitment from the same lender to finance the Renewable Natural Gas projects at the other two dairies. The financing includes capital for the anaerobic digesters, the biogas collection and upgrading system, as well as the utility interconnection system.

“These three dairy farms represent what I envisioned as phase one of the biogas cluster consisting of eight to 10 total farms once the system is fully built out,” said Patrick R. Gruber, chief executive officer of the company. “We aim to change mindsets by demonstrating you can change waste from being a pollution problem to a renewable energy solution in the liquid fuels market.”